Court Upholds Godiva’s $6.3M Credit Card Privacy Law Settlement

A federal appeals court recently upheld a $6.3 million settlement over credit card privacy law violations, despite Class Member objections.

Florida doctor David Muransky filed his credit card privacy law class action lawsuit after a Godiva Chocolatier retail location allegedly printed too much of his card number on a receipt from a purchase. By printing more than the first six and last four digits of his card number, Muransky claims, Godiva violated the Fair and Accurate Credit Transactions Act (FACTA).

FACTA is a federal credit card privacy law that protects customers by standardizing the amount of information a merchant can include on receipts. Under the law, electronically printed receipts presented at the point of sale can only contain the last five digits of a credit card number. The expiration date must not be printed at all. These requirements aim to reduce the risk of identity theft.https://topclassactions.com/lawsuit-settlements/closed-settlements/342096-godiva-chocolatier-facta-class-action-settlement/

Muransky argued that Godiva violated FACTA by printing excessive payment card information on their receipts. After mediation with the chocolatier, Muransky secured a $6.3 million settlement. The agreement was set to pay 47,000 Class Members each an average payment of $235. Claims under the settlement were due in August 2016, but payment of the settlement has been halted due to various appeals.

The U.S. Court of Appeals for the 11th Circuit previously affirmed the settlement reached between Muransky and Godiva, but the court was called upon six months after this decision to deliberate on the issue again. The reassessment was prompted by court rulings and Class Member objections that threatened the settlement.

One Class Member, John D., argued that Muransky is not a suitable Class representative because he never had his identity stolen. By acting as Class representative, Muransky reportedly bars the claims of Class Members who had their identities stolen due to Godiva FACTA violations.

“[John] believes that a class representative should not be able to assert, and then settle and bar other people’s claims for serious injuries that he never suffered himself, and that he faced no real risk of suffering,” John’s lawyer said, according to Daily Business Review.

However, the 11th Circuit reaffirmed the settlement after finding that “concrete injury” is the only requirement for bringing FACTA claims. Even though Muransky did not have his identity stolen, the 11th Circuit determined that the concrete injury requirement was satisfied by even just the FACTA violation. The “additional burden” of needing to keep the receipt safe in his wallet only added to this “concrete injury”.

In reaffirming the settlement, the 11th Circuit also distanced itself from conflicting rulings in its sister courts. The 3rd Circuit recently determined that by itself, an excess of digits on a credit card on a receipt didn’t satisfy standing for FACTA claims, but the 11th Circuit departed from that opinion.

Due to the conflicting rulings from two circuit courts, the case may be evaluated in the future by the Supreme Court. John, the objecting Class Member, suspects that this may be an eventuality.

“While the 11th Circuit endeavored to distinguish its holding in Muransky from similar contrary opinions in sister circuits, we believe the Muransky opinion also presents a departure from precedent established in the Second, Seventh, and Ninth circuits,” Davis said, according to Daily Business Review.

The Godiva FACTA Class Action Lawsuit is Muransky v. Godiva Chocolatier Inc., Case No. 0:15-cv-60716-WPD, in the United States District Court for the Southern District of Florida.

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This article is not legal advice. It is presented 
for informational purposes only.