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Credit card receipt violations bring FACT Act suits

November 17, 2010

Class action lawsuits are increasing against businesses that fail to truncate credit card information on receipts, as called for by the Fair and Accurate Credit Card Transaction Act of 2003.

Businesses are required to shorten, or truncate, account information so that not more than the last five digits of the card are displayed. Also, the expiration date must be omitted.

Most electronic card machines have been modified for the account number change, but too many still display the card’s expiration date.

Important, the requirements apply only to electronically printed receipts, not to handwritten or imprinted receipts; and to receipts given to the customer at the point of sale, not to receipts retained by the business.

The law allows for harmed customers to seek damages and attorneys fees. Also, noncompliance can result in FTC enforcement action that could include assessing monetary penalties against the business.

 

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