Quote of the Day - This is my ultimate fantasy: watching QVC with a credit card while making love and eating at the same time.
Under the Federal Fair and Accurate Credit Transactions Act, cash register receipts cannot display either the expiration date or more than the last five digits of a customer's credit card number. The law went into effect at the end of last year in December 2006, but applies only to registers in use before January 1, 2005. Credit card machines produced after that date had to be in immediate compliance.
So, now's a good time to check your credit card receipts because nearly forty-five lawsuits have been filed in and around Los Angeles County, California, alleging violations of the Act. Penalties range up to $1,000 per incident, and the suits can be filed as class actions, multiplying the penalties dramatically.
Lawyers who filed the suits chose California because of a favorable interpretation of the Act by the Ninth Circuit, which view noncompliance as "reckless disregard" of the Act, while other circuit courts require a much higher standard of proof of intentional and knowing violations. In any event, the split between the circuit courts should be resolved shortly, with a ruling pending in two cases consolidated before the U.S. Supreme Court: Safeco Insurance Co. of America v. Charles Burr and GEICO General Insurance Co. v. Ajene Edo, that highlight these two, conflicting results.
In the meantime, however, business owners would be wise to check their credit card machines and reprogram them, if necessary.