Microsoft Faces First Ever FACTA Lawsuit

Tech giant Microsoft Corp. recently agreed to settle allegations that its retail stores printed receipts that violated terms of the Fair and Accurate Credit Transactions Act (FACTA). A class action lawsuit raised in Florida found that receipts issued by Microsoft brick-and-mortar stores contained more sensitive data than FACTA allows to be printed.

Receipts for payments made with credit or debit cards displayed card information that revealed almost the entire card number– a big blow to one of FACTA’s main provisions. Under FACTA’s “truncation” requirement, businesses are prohibited from printing more than the last five digits of the credit or debit card number; in addition, the expiration date is completely off limits.

Lead plaintiff Carlos Guarisma filed a suit on behalf of everyone who had purchased an item in a Microsoft store and paid with a credit or bank card between November 2013 and February 24, 2017 when the $1.2 million settlement was reached. Surprisingly, this is Microsoft’s first FACTA lawsuit.

The law has been in place since 2004 but several retailers continue to find themselves involved in these types of class action lawsuits. Big names like Costco, Jimmy Choo, and Spirit Airlines have all settled enormous lawsuits due to allegations of FACTA violations. These suits often occur when a new business joins the market and is unaware of FACTA requirements, or when established businesses change their POS systems. In this case, a Microsoft spokesperson claimed a “technical bug that we immediately fixed when it was brought to our attention” was the cause for the unlawful receipts.

The Fair and Accurate Credit Transactions Act was implemented to curb instances of fraud. Florida leads the nation in instances of credit/ debit card fraud and has the highest rate of credit card complaints. For each FACTA violation, plaintiffs can receive between $100 and $1000 through the aid of a knowledgeable attorney.

In South Florida, Jibrael S. Hindi and his team are dedicated to protecting the rights of consumers. If you believe your personal information has been unlawfully revealed, contact The Law Offices of Jibrael S. Hindi at 1-844-JIBRAEL to discuss your case. Remember, each violation can bring up to $1000 in damages. In addition, you do not pay a dime until Jibrael and his team win your case!