FACTA Protects Consumers From Identity Theft

Today’s point-of-sale computer systems are able to print a receipt that contains all the information relevant to a particular transaction. Some systems are capable of printing the sensitive credit or debit card information used in the transaction, putting the consumer at risk for credit fraud.

Fortunately the Fair and Accurate Credit Transactions Act (FACTA), a set of federal credit card receipt laws, creates stiff penalties for merchants who expose too much credit card information.

What Is FACTA?

Congress passed FACTA in 2003 as a set of amendments to the Fair Credit Reporting Act to address increasing concern about identity theft and credit fraud. FACTA contains a whole toolbox of provisions that help protect consumers.

FACTA includes a set of credit card receipt laws that specifically govern what information may and may not be printed on credit or debit card receipts. Businesses that accept payment via these cards must print no more than the last five digits of the card number on the receipt. They are also prohibited from printing the expiration date. This provision is known as FACTA’s “truncation” requirement.

Older technology gets grandfathered in with one exception, however. Receipts generated by hand or by the older mechanical imprinting method are exempt from the truncation requirement.

Though the truncation requirement definitely applies to hardcopy receipts made during face-to-face transactions, courts are split as to whether it also applies to purely electronic transactions that do not generate a paper receipt.

The statutory damages provisions are what give FACTA real muscle. Each receipt not in FACTA compliance can put a business on the hook for a minimum $100 in damages. If the consumer can prove the violation was “willful,” that amount can increase to as much as $1,000 per violation. The offending business can also be on the hook for punitive damages and the plaintiff’s attorneys’ fees.

These statutory damage provisions save the plaintiff the trouble of proving any actual identity theft or resulting harm. Just by printing a noncompliant receipt, a business can be liable under FACTA.

The stakes for businesses that fail to comply with FACTA are huge. One misprogrammed cash register can print hundreds or thousands of receipts before being discovered, setting the stage for millions – or even billions – of dollars in damages.

Situations like that are fertile ground for a FACTA class action lawsuit. Real FACTA lawsuits against big retailers have alleged damage amounts in the millions – for example, $17 billion against Costco, $3.4 billion against Cost Plus World Market, and $2 billion against Stub Hub.

Fortunately, Congress gave businesses a generous grace period in which to upgrade or replace their receipt-printing equipment. FACTA’s credit card receipt laws did not go into full effect until 2006, three years after FACTA was enacted.

The time for filing a FACTA lawsuit is limited. The act’s statute of limitations requires a plaintiff to make their claim no later than two years from their discovery of the violation and no later than five years from the date of the violation itself. So consumers who suspect they may have a valid FACTA claim will do best to consult a knowledgeable FACTA attorney as soon as possible.

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

Get Started