Customers who used credit or debit cards between March and July 2019 must file claims by June 9 to receive estimated payouts
Category: Business
Trader Joe’s customers have until Tuesday, June 9, 2026, to submit claims for a share of a $7.4 million class-action settlement related to a lawsuit claiming the grocery chain printed excessive credit and debit card information on receipts. The lawsuit, filed in 2019, alleges that Trader Joe’s violated federal consumer privacy laws by displaying the first six and last four digits of customers’ card numbers on receipts, rather than adhering to the Fair and Accurate Credit Transactions Act (FACTA), which limits printed card information to the last five digits.
The settlement comes after a multi-year legal battle initiated by plaintiff Brian Keim, who filed the lawsuit on July 17, 2019. He contended that the receipt formatting exposed customers to potential identity theft risks, even though Trader Joe’s has denied any wrongdoing. The company stated that no customers reported identity theft linked to the receipts, and noted that the formatting issue only occurred at select locations during a limited timeframe.
To be eligible for compensation, customers must have made purchases using a credit or debit card at Trader Joe’s during the specified period and received a receipt that displayed the first six and last four digits of their card number. According to the settlement notice, approximately 757,663 individuals were identified as potentially affected and notified via email or postcard about the settlement.
Customers who wish to claim their share can do so online at the settlement website or by calling the toll-free hotline at 1-888-444-7415. They may also submit claims by mail, but must do so before the June 9 deadline. If eligible customers fail to file a claim, they will forfeit their right to any payment and lose the ability to sue Trader Joe’s over this issue in the future.
Trader Joe’s has pointed out that the receipt formatting error did not occur at all its stores and affected only a small number of transactions. The company emphasized that it had not received any reports of identity theft related to the receipts, which is a key factor in FACTA claims. Nonetheless, the law does not require proof of identity theft for a claim to be valid.
The lawsuit against Trader Joe’s is rooted in the Fair and Accurate Credit Transactions Act (FACTA), which was enacted in 2003 to protect consumers from identity theft. This legislation limits the information that can be printed on receipts from credit and debit card transactions, mandating that only the last five digits of a card number may be displayed. The intent behind this regulation is to minimize the risk of fraud and unauthorized access to personal financial information.
In this case, the plaintiff's claims arose when he noticed that his receipt included the first six and last four digits of his card number, a clear violation of FACTA. The case shows the value of compliance with consumer protection laws, particularly in the rapidly digitizing retail environment where data breaches and identity theft are increasingly common.
Prior to this settlement, Trader Joe's had faced legal challenges in the past, including a 2016 class-action lawsuit related to underfilled tuna tins. In that case, federal testing revealed that some products contained significantly less than the advertised weight. Trader Joe's agreed to a $1.3 million settlement in that matter, demonstrating a pattern of addressing legal disputes through settlements rather than prolonged litigation.
The court is scheduled to hold a final approval hearing for the settlement on August 10, 2026. This hearing will determine whether the settlement can proceed as planned. If approved, the payout amounts to each claimant will depend on the total number of valid claims submitted. Currently, the estimated payout per claimant stands at approximately $102.45, but this figure could fluctuate based on the final count of eligible claimants.
Shoppers who have received notifications about their eligibility are encouraged to take action quickly. As the deadline approaches, many may find themselves scrambling to locate receipts from the relevant time period or to gather the necessary documentation to submit their claims. Trader Joe's has made it clear that those who do not file a claim will not receive any compensation from the settlement, emphasizing the importance of timely action.
The resolution of this case could serve as a reminder for consumers to remain vigilant about the information they share and receive during transactions. As retailers increasingly rely on technology for payment processing, the risk of data exposure remains a pressing concern. The outcome of the Trader Joe’s case may also influence future litigation involving similar allegations against other retailers.
As the August court date approaches, affected customers are advised to stay informed about the process and to make sure their claims are filed correctly and on time. Failure to do so could mean missing out on a share of the settlement.