The nationwide controversy began back in July 2019 when a shopper named Brian Keim filed a class action lawsuit against Trader Joe’s Company. The legal complaint alleged that the popular grocery chain printed too much credit and debit card information on customer receipts, violating federal consumer protection laws and exposing everyday people to a heightened risk of identity theft.
According to the lawsuit, a glitch in the grocery chain’s payment processing software caused a specific subset of printed customer receipts to display 10 full digits of shoppers’ payment cards. The lawsuit noted that the affected receipts prominently showed the first six and the last four digits of the card number used during the checkout transaction.
While Trader Joe’s points out that the printed receipts did not display card expiration dates, middle digits, or full customer names, the plaintiff maintained that printing 10 digits left shoppers unnecessarily vulnerable to financial fraudsters. The legal case, Keim v. Trader Joe’s Company, was eventually moved to the Los Angeles County Superior Court under Case No. 19STCV36790.
Why Printing Too Many Receipt Digits Violates Federal Protection Laws
You might wonder why a retail store printing 10 digits on a paper receipt is a major legal issue. The answer lies in a strict federal consumer privacy law designed specifically to shield everyday people from identity thieves and financial scammers.
The Fair and Accurate Credit Transactions Act, commonly known as FACTA, is a federal statute enacted by Congress in 2003 as an amendment to the broader Fair Credit Reporting Act. Under FACTA regulations, businesses and retailers are explicitly prohibited from printing more than the last five digits of a customer’s credit or debit card number on any electronically generated customer receipt copy.
Furthermore, the federal law completely bans merchants from printing any portion of a card’s expiration date on cash register receipts. The rationale behind FACTA is straightforward: consumers frequently lose receipts in parking lots, leave them on store counters, or throw them into public trash cans. By limiting the amount of sensitive payment data printed on paper, the law keeps major corporations from turning a simple trash item into an identity thief’s toolkit.
How Much Money Could You Receive From the Grocery Chain Settlement?
To resolve the years-long litigation, Trader Joe’s has agreed to establish a $7,400,000 class action settlement fund. This multi-million dollar fund will be used to cover cash payouts to eligible consumers, administrative expenses, and court-approved attorneys’ fees.
The settlement website indicates that each class member who files a valid, timely claim form is estimated to receive a cash payout of approximately $102.45. However, this individual reward is not set in stone. The exact final payment amount could increase or decrease depending entirely on the total volume of valid claims submitted before the approaching deadline.
Additionally, the settlement agreement outlines a plan for any leftover money. If a significant amount of funds remains in the settlement pool after the first round of checks is distributed, the administrator may issue a second distribution check of at least $10 to claimants. If a secondary rollout is deemed unfeasible, the remaining money will be donated to the Identity Theft Resource Center.
Who Is Eligible to Participate in the Receipt Cash Payout?
Not every person who has ever bought groceries at Trader Joe’s is eligible to collect a portion of this multi-million dollar settlement fund. The criteria for participating are narrow and depend on the specific timeframe, transaction type, and store location involved in the software glitch.
You may be eligible to file a claim and receive an estimated $102.45 cash payout if all of the following statements apply to you:
You used a credit card or a debit card to complete a transaction at a Trader Joe’s store location.
The transaction took place during the four-month window between March 5, 2019, and July 19, 2019.
The store’s payment software formatted your customer receipt to display both the first six and the last four digits of your card number.
You are the primary account holder for the credit or debit card used in that transaction.
The claims administrator notes that the software issue did not occur at every single Trader Joe’s location nationwide. Even within the store locations where the faulty software was running, only a small minority of transactions resulted in the non-compliant receipts
Don’t Stand Alone: Let Class Action U Help You Hold Corporations Accountable
Major retail entities have a legal obligation to handle consumer financial data with the utmost care and in strict compliance with federal statutes like FACTA. When large corporations fail to update their payment software, they leave everyday people vulnerable to security threats and financial exploitation.
At ClassActionU.org, we believe that consumers deserve justice and corporate accountability when their privacy rights are compromised. You don’t stand alone when facing multi-billion dollar grocery chains—class action lawsuits provide the legal leverage necessary to protect the public and enforce consumer rights.
If you believe your consumer rights have been violated by a major corporation, there is absolutely no cost and no obligation to reach out to our network. Connect with one of our experienced partner attorneys today to discuss your unique situation and find out if you may be eligible to spearhead a new investigation or join an active consumer lawsuit. Turn your awareness into action and protect your hard-earned dollars.