FTC Publicity Used to Show Willfulness in FCRA Truncation

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FTC Publicity Used to Show Willfulness in FCRA Truncation

Postby Administrator » Mon Sep 29, 2014 11:34 pm

FTC Publicity Used to Evidence Willfulness in FCRA Truncation Claim. A federal court recently ruled that the willful violation of the Fair and Accurate Credit Transactions Act (FACTA) amendment to FCRA, which requires redaction of information on credit card receipts, was sufficiently alleged to survive a motion to dismiss by citing, among other things, that the FTC had issued a business alert regarding FACTA’s requirements. Ehrheart v. Verizon Wireless, No. 07-1165, 2007 WL 4377681 (W.D. Pa. Dec. 11, 2007). In this case, a consumer brought suit against Verizon alleging a failure to adequately redact credit card information on a receipt as required by FACTA. The defendant moved to dismiss, arguing that the consumer only alleged willful violations, which carry statutory damages of $100 to $1000, and that any violations were at most negligent. The court disagreed, citing the complaint’s allegations that (i) the FTC had taken steps to inform the business of FACTA requirements, (ii) Visa, with whom Verizon contracted, had issued a manual informing the business of the law, (iii) Verizon’s peers and competitors had complied with the requirement, and (iv) Verizon had had three years to comply by the time of the alleged violation. Therefore, the court found that the claim “plausibly alleged” in the complaint. Separately, the FTC on December 14 issued an additional press release entitled “FTC Reminds Businesses: Don’t Print Full Credit and Debit Card Numbers on Customers’ Purchase Receipts.”
David A. Szwak
Bodenheimer, Jones & Szwak, LLC
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