Some Trader Joe’s customers will receive a payout after the grocery chain reached a legal settlement over its privacy practices.
The case involves a 2019 class-action lawsuit filed in Los Angeles Superior Court by shopper Brian Keim, who alleged that receipts from Trader Joe’s stores displayed the first six and last four digits of his credit card, increasing the risk of identity theft.
The original complaint was filed in Florida after Keim shopped at a Trader Joe’s in Palm Beach Gardens. The case was later transferred to the Central District of California since the retailer is headquartered in Monrovia, Los Angeles County.
The federal Fair and Accurate Credit Transactions Act (FACTA) includes a provision prohibiting businesses from printing more than the last five digits of a customer’s credit or debit card number on any electronically printed receipt. The 2003 law also allows consumers to recover damages from businesses that fail to comply.
What is the Trader Joe’s settlement?
Trader Joe’s said it was unaware of any identity theft resulting from the receipts and did not admit any wrongdoing, noting that it chose to settle the lawsuit to avoid further litigation. In February, the company and the plaintiff reached a tentative $7.4 million settlement, which remains subject to final court approval.
A fairness hearing is scheduled for August, at which a judge will make a final determination on whether to approve the agreement.
Along with offering payments to the plaintiff and for attorneys’ fees, the $7.4 million settlement fund will cover payments to people who shopped at Trader Joe’s stores between March 5, 2019, and July 19, 2019, who submit valid claim forms. The company has stores in 42 states and Washington, D.C., most of them in California.
How much will eligible customers get under the settlement?
According to the settlement website tj-factasettlement.com, the share of the settlement fund depends on the number of valid claim forms submitted, but the final payment amount is estimated at $102.45 per claim.
Who is eligible to receive a Trader Joe’s settlement payout?
Persons who shopped at Trader Joe’s between March 5, 2019, and July 19, 2019, and who submit valid claim forms before the due date are eligible.
According to the settlement website, “Not all Trader Joe’s stores printed receipts displaying the first six and last four digits of the card number, and in those stores that did, only a small minority of transactions involved such receipts.”
How do you file a claim for a Trader Joe’s settlement payout?
Shoppers who receive an email notice or a postcard with a claim identification number have been identified as members of the settlement class. Consumers who aren’t sure whether they are included in the class can visit the settlement website to contact the claims administrator for more information.
Shoppers can file a claim by visiting the official settlement website and filling out an online form, or by downloading and printing a claim form to mail in. Claims can also be made by telephone by calling the settlement hotline at 888-444-7415. Shoppers can file a claim even if they don’t have physical receipts.
When is the deadline to file a settlement claim?
The deadline to submit a claim for a Trader Joe’s settlement payout is June 9. A court hearing for final approval of the settlement is scheduled for August 10.