This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.
Bloomberg Law: Privacy & Data Security brings you single-source access to the expertise of Bloomberg Law’s privacy and data security editorial team, contributing practitioners,...
A restaurant that left credit card expiration dates on printed receipts didn’t harm privacy enough to let a class of customers sue, the U.S. Court of Appeals for the Second Circuit affirmed June 26 ( Crupar-Weinmann v. Paris Baguette Am., Inc. , 2d Cir., 6/26/17 ).
Chief Judge Robert A. Katzmann wrote that, under the Fair and Accurate Credit Transactions Act (FACTA), a receipt with a credit card expiration dates “on an otherwise properly redacted receipt” doesn’t “raise a material risk of identify theft.”
Additionally, the violation alone, without actual allegations of identity theft, doesn’t present enough harm to confer federal court standing, he said. The plaintiffs failed to show that the “bare procedural violation” of the law “posed a material risk of harm,” Katzmann wrote.
FACTA requires companies to redact all but a credit card’s last five numbers and the expiration date from receipts. Congress amended FACTA under the Credit and Debit Card Receipt Clarification Act “to clarify that a receipt containing a printed expiration data does not raise a material risk of identity theft,” the court said.
Gregory A. Frank, class action litigation partner at Frank LLP in New York and counsel in the present case, told Bloomberg BNA June 26 that, “Congress recognized that publication of credit card expiration dates brings an unacceptable risk of harm to consumers.” The Second Circuit’s decision “that a consumer must plead some additional risk is illogical,” he said.
The Second Circuit followed an earlier ruling by the Seventh Circuit in Meyers v. Nicolet Restaurant of De Pere, which held that, although failure to remove the expiration date is technically a violation of FACTA, the plaintiffs didn’t have standing because they failed show that they were actually harmed or that the violation created a risk of harm.
Judges Rosemary S. Pooler and Denny Chin joined in the Second Circuit opinion.
Representatives for Paris Baguette didn’t immediately respond to Bloomberg BNA’s email request for comment.
Troutman Sanders LLP represented Paris Baguette.
To contact the reporter on this story: Daniel R. Stoller in Washington at dStoller@bna.com
To contact the editor responsible for this story: Donald Aplin at daplin@bna.com
Full text of the opinion is available at http://src.bna.com/qd1.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)