At the time President Bush signed the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), few would have predicted that it would become the catalyst for a mass filing of complaints against retailers and businesses in 2007. One unique provision of the FACT Act, however, has done just that, with potentially serious consequences for retailers, merchants and any other individual or business that accepts credit or debit cards from its customers.
The FACT Act, Pub. L. No. 108-159, 117 Stat. 1952 (2003), became fully effective on Dec. 4, 2006, and penalties for noncompliance can be severe. The act requires any person or business accepting credit or debit cards to limit the amount of information that is printed on the cardholder’s receipt. A rash of new lawsuits has been filed recently seeking substantial damages from businesses that have allegedly failed to comply.
