Trader Joe's will provide payouts to eligible customers following a $7.4 million class-action settlement regarding the display of excessive credit card information on store receipts.

Privacy Concerns and the Lawsuit

The grocery chain faced a legal challenge centered on customer data privacy and how it handles information on receipts. The lawsuit originated in 2019 with plaintiff Brian Keim, who alleged that receipts at Trader Joe’s locations were exposing sensitive financial data.

Receipt Information at Issue

Keim’s complaint stated that receipts printed the first six and last four digits of customers’ credit card numbers. This practice, he argued, created a security risk and potential for identity theft and financial fraud. The case moved from Florida to the Central District of California, where Trader Joe’s is headquartered.

FACTA and the Legal Dispute

The core of the dispute revolves around the Fair and Accurate Credit Transactions Act (FACTA). This federal regulation prohibits merchants from printing more than the last five digits of a customer’s credit or debit card number on receipts.

FACTA aims to minimize the risk of unauthorized access to financial information if a receipt is lost or discarded.

Settlement Details and Eligibility

Trader Joe’s denies any wrongdoing and states there’s no evidence of identity theft linked to the receipts. However, the company opted for a $7.4 million settlement to resolve the litigation.

To qualify for a payout, consumers must have shopped at Trader Joe’s between March 5, 2019, and July 19, 2019. The estimated payout per individual is approximately $102.45, subject to the total number of valid claims.

How to File a Claim

Interested parties should visit the official settlement website to verify eligibility, confirm class membership, and submit documentation. The claim submission deadline is June 9, with a final fairness hearing scheduled for August 10.