Proposed Bill Offered Hope For Businesses Sued For Alleged Violations of FACTA
January 10, 2008
Since December 4, 2006, a flood of class action cases have been filed against business owners throughout the country alleging violations of FACTA. This wave of class action litigation has not gone unnoticed by the legislature. FACTA class action cases threaten businesses with the potential loss of millions of dollars. There is a new bill pending in the House of Representatives that could offer relief to businesses currently defending against FACTA claims.
The stated purpose of the Credit and Debit Card Receipt Clarification Act of 2007 (H.R. 4008) is to make technical corrections to the definition of "willful" noncompliance with FACTA. H.R. 4008 would clarify that any merchant that complied with the truncation requirement for credit card numbers on receipts, but left the expiration date on the receipt, would be in good faith compliance with the law. In addition, as written, it is likely that this resolution will be retroactive, which means that it could apply to lawsuits that are currently pending. We will monitor and provide updates on the progress of H.R. 4008.
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