New Jersey Supreme Court to Review PC Richard Receipt Lawsuit Ruling

The New Jersey Supreme Court is reportedly considering whether class claims in a PC Richard receipt lawsuit are preferable over consumers taking up individual actions in small claims court.

The PC Richard receipt lawsuit was lodged on behalf of consumers by plaintiffs who say that the appliance dealer exposed to identity theft and fraud. The class action lawsuit alleges that customer credit card receipts from PC Richard locations contained too much information – a violation of the Fair and Accurate Credit Transaction Act (FACTA).

According to Law360, the PC Richard receipt lawsuit has wound its way through the court system, facing dismissal by an appellate court that found the proposed Class was not properly identified. The Court of Appeals also concluded that the appropriate venue for Class Members proposed by the plaintiffs was state smalls claims court.

Reportedly, the New Jersey Supreme Court will hear the plaintiffs’ appeal arguing that a class action lawsuit is the appropriate legal venue for allegations of FACTA violations.

“We’re very pleased that the Supreme Court granted our petition for certification to review the significant issues relating to class certification that this case presents,” a lawyer representing the plaintiffs told Law360.

What Does FACTA Require?

FACTA is a federal law enacted in 2003 that prescribes the credit or debit card information merchants are permitted to print on customer receipts. Under the law, printed receipts may only include the last five digits of a credit or debit card. In addition, the expiration date of the card must not be included.

According to True Shred, FACTA is meant to help protect consumers from identity theft and fraud by reducing the amount of financial information available to would-be criminals. It covers businesses large and small, and merchants can face substantial fines for violating the law.

Penalties for FACTA violations can range from $1,000 to $2,500. These penalties can add up because, according to True Shred, the penalty is per violation. If a company fails to program their equipment properly and hands out receipts to thousands of customers, they can face up to a $2,500 penalty for each of those receipts.

Customers at Risk for Fraud

According to the complaint, receipts coming out of PC Richards included excess information for a Class of potentially thousands of customers.

“P.C. Richard programmed its equipment to print the expiration date of its customers’ credit/debit cards on receipts in violation of FACTA,” states the complaint.

Reportedly, PC Richards has faced legal action over its receipts before, with a class action lawsuit alleging that the company is well-aware of FACTA requirements.

FACTA Settlements

While the New Jersey Supreme Court considers whether to reinstate the PC Richard receipt class action lawsuit, a number of other cases alleging FACTA violations have resulted in substantial settlements from major companies.

In 2018, Subway agreed to pay 30.9 million in a class action lawsuit alleging various locations printed expiration dates on customer receipts between 2016 and 2017. The settlement was reportedly the largest of its kind and Class Members could claim up to $75.

Spirit Airlines paid $7.5 million to end a class action lawsuit alleging it printed more than the last five digits of consumer credit and debit cards on receipt from its airport kiosks. The potential award reached as high as $1000 under the terms of this settlement agreement and was estimated to be a minimum of $265.

Other FACTA settlements include agreements with Microsoft, Jimmy Choo, Godiva, and LabCorp.

The PC Richard Receipt Class Action Lawsuit is Baskin et al. v. P.C. Richard & Son LLC, Case No. 084257, in the New Jersey Supreme Court.