Federal Judge Denies Class Certification in Key FACTA Suits Pillsbury Successfully Defends Client Against Class Action

15-Jun-2007 [Press Release]

Los Angeles, CA:
In a key set of decisions this week, a federal judge in Los Angeles has denied class certification for three Fair and Accurate Credit Transactions Act (FACTA) lawsuits, including Taline Soualian v. International Coffee and Tea LLC (CV 07-502-RGK) in which Pillsbury Winthrop Shaw Pittman successfully represented the defendant. Pillsbury currently represents more than a dozen clients in FACTA-related matters.

Taken together, along with a May 25th decision on Spikings v. Cost Plus, Inc. (CV 06-8125-JFW) also denying class certification, the cases establish a precedent that could impact more than 200 lawsuits that have been filed in recent months alleging that retailers and restaurants provided too much information on customers’ credit card receipts in violation of the law.

Effective December 4, 2006, FACTA requires that retailers provide no more than the last five digits of the card number or the expiration date on any receipt provided to the cardholder at the point of the sale or transaction. Since that time, the plaintiffs’ bar has filed hundreds of suits seeking class status. If any retailer is found in willful violation of that rule, each class member would be eligible to receive between $100 and $1000 in statutory damages, which for larger retailers found to be in violation could cost tens of millions or even billions of dollars.

“The decisions this week are highly significant in that the court recognized that certifying class actions in these FACTA cases could result in serious financial hardship for the retailers, and makes no sense given that no harm has been done to the plaintiffs in terms of identity theft or any other damage,” says Robert Wallan, a partner with Pillsbury Winthrop Shaw Pittman in Los Angeles, who lead the defense team representing International Coffee and Tea. “These decisions reach a common sense result.”

In the Soualian suit, during a credit card transaction with one of the Defendant’s Coffee Bean stores, the Plaintiff received an electronically-printed receipt that contained the card’s expiration date. Plaintiff sought to certify the class of individuals who made purchases at the Defendant’s stores between December 24, 2006 and January 24, 2007, who also received receipts containing expiration dates.

U.S. District Judge R. Gary Klausner of the Central District of California found that due to the enormous damages requested and the lack of harm suffered by the plaintiffs, the plaintiffs failed to pass the superiority test which is required for class certification. In addition, the defendants investigated and removed expiration dates on credit card receipts as soon as they were made aware of the alleged technical violation.

“There is no evidence that any customer making a purchase from the Defendant’s stores…suffered any actual harm due to the inclusion of the expiration date on credit card and debit card receipts,” Judge Klausner wrote in his decision. “Furthermore, it appears virtually impossible for the inclusion of the expiration date on a credit card or debit card receipt to result in identity theft or any other actual harm…. Given the disproportionate consequences to Defendant’s business (if class was certified, statutory damages could be as high as $48 million), and the lack of any actual harm suffered by members of the potential class, the Court finds that Plaintiff fails to meet the superiority requirement.”

The judge also noted that he denied class because upon learning it was in technical violation of FACTA, International Coffee and Tea immediately investigated and rectified the situation, demonstrating good faith and no willful intent.

The other two FACTA cases in which Judge Klauser denied certification this week targeted Avis Rent A Car and clothing retailer Charlotte Russe.

View this article online at: http://www.pillsburylaw.com/bv/bvisapi.dll/portal/ep/newsReleaseDetail.do/pub/2007615142951625/ruleType/PUB_FIRMNEWS_RELEASES/channelId/-8593/tabId/5/pageTypeId/9208

If you have any questions, please feel free to call BHD at 800-377-7776.

BHD at Nike Events around the World

Retail Pro is used to handle retail sales at Nike events worldwide. Big Hairy Dog is there to help as Nike sets up its enormous tent to house the specialty merchandise that is making record sales at these events.

Karen Page, BHD Sales Rep, and Paul Jones, Tech, recently attended the Chicago and Honolulu Marathons, both of which were huge successes. Retail Pro at the POS kept the sales lines moving at a rapid pace, and flawlessly handled the sales of Nike merchandise. Here are some of the pictures taken at these events.

BHD Holds Annual Holiday Party

Big Hairy Dog's 2008 Holiday Party was a big success, with employees enjoying each other's company along with dinner and spirits. It seemed to be agreed by everyone that this was the best party yet. Here are just a few of many pictures taken at the event.

Just another day in the BHD Tech Room

This picture shows Werner, one of BHD's senior techs in a typical hard-working, "I can fix your problem" mindset. We know those of you who have worked with Werner are aware that he is just as good at having fun as he is at solving electronic technical issues. While all at Big Hairy Dog are held to the highest of standards, there is great camaraderie and always time for a little fun.

Retail Pro discontinuing sale of Credit Pro and PPM credit card software

Retail Pro announced that they will be discontinuing the sale of Credit Pro and PPM credit card integration software, This does not affect those who currently use PPM or Credit Pro. Big Hairy Dog will continue to support these products. If you have any questions, please feel free to call 800-377-7776.

BHD Chooses new Anti-Virus Software

After testing various Anti-Virus softwares BHD has decided to go forward with AVG as our primary software. We are also approving Kaspersky for use with Retail Pro.

We are discontinuing the use of Trend Micro Internet Security starting with version 2009. Older versions still work fine with Retail Pro, but remember when it comes time to upgrade your Trend Micro - do not upgrade to version 2009. This version creates performance issues with Retail Pro that can not currently be fixed.

We will continue to check with Trend Micro to see if they release an update that fixes the issue, but we can not wait indefinitely for that to happen. Starting Jan 1, 2009, the only version they will available to buy will be the 2009 version.

If you have any questions regarding this, please feel free to contact a BHD tech at 916-368-1070.

More States Requiring Price Displays at Retail Checkouts

Many states are now requiring Scanned Price Displays at the Retail Point of Sale. These displays must be placed in a location plainly visible to consumers. Each year, more states adopt this legislature, managed under the State Department of Weights and Measurements, subdivision (a), article 13300.

In part, this article states: "13300. (a) The operator of a business establishment that uses an automatic checkout system to sell goods or services to consumers shall ensure that the price of each good or service to be paid by the consumer is conspicuously displayed to the consumer at the time that the prices is interpreted by the system."

For those states who just adopted this ruling, the price displays must be in place on and after January 1, 2009. Big Hairy Dog is working with our customers to get price pole displays shipped and installed by deadline. These interface seamlessly with Retail Pro, and are sale-priced to be affordable to those customers needing them.

We have heard from some customers who have been fined for not having this hardware in place. Be sure to protect your business to avoid legal action. Call today to order your pole displays and save with our end-of-year special pricing. 800-377-7776.

BHD Minimum Staff, 2-6pm, Friday, Dec. 5

BHD Staff will be participating in a company-wide meeting from 2-6pm on Friday, Dec 5. During those hours we will be operating with a minimum staff available. We ask customers who need to reach a staff member, and know in advance, please call before 2pm. There will be minimum tech support available from 2-6pm for any emergencies which may arise.