Burger King Hit With FACTA Suit Over Customer Receipts

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Law360, New York (July 7, 2017, 7:18 PM EDT) — Burger King is exposing customers to identity theft and violating the Fair and Accurate Credit Transactions Act by printing too many credit card digits on consumer receipts, according to a proposed class action filed Friday in Florida federal court.

Named plaintiff Ryan D. Gesten claims that the burger chain violates its customers’ privacy and leaves them vulnerable to identity theft by printing sales receipts featuring the first six and last four digits of their credit cards. Printing receipts that show more than five digits of a card number violates FACTA, and Burger King Corp. has previously faced suits over the same allegations, the complaint said.

“Not only was defendant so informed not to print more than the last five digits of credit or debit cards, it was contractually prohibited from doing so,” the complaint said. “Defendant accepts credit cards and debit cards from all major issuers; these companies set forth requirements that merchants, including defendant, must follow, including FACTA’s redaction and truncation requirements.”

The alleged violation of FACTA, which was enacted in 2003 to combat identity theft, occurred in June in a Miami area Burger King restaurant. In addition to the alleged exposing of the customer’s credit card details, the receipt also included the method of payment, brand of card, date and time of the transaction and the location of the restaurant, Gesten said. These details combined with the credit card digits add to the risk of identity theft occurring, the complaint asserted.

Printing the extra card digits also recklessly violated the privacy of customers as Burger King employees could potentially access the receipts or they could be found by individuals in the trash, the complaint asserted.

According to the complaint, the Federal Trade Commission has reported that in 2015, Florida residents made the highest number of fraud-related complaints and the third-highest number of identity theft complaints in the nation.

Burger King should be more aware of potential FACTA violations than other companies given that it was sued in 2008 and 2011 by customers in Florida and Wisconsin, respectively, for alleged violations of the act, the complaint said. Both suits were settled, according to court documents.

The proposed nationwide class is composed of any individual who, in the last two years, paid for a Burger King purchase with a debit or credit card and was given a receipt that displayed more than the last five digits of their card number or the expiration date.

Representatives for both parties did not respond to requests for comment Friday.

Gesten is represented by Keith J. Keogh of Keogh Law Ltd., Scott D. Owens of Scott D. Owens PA and Bret Lusskin Jr. of The Law Office of Bret Lusskin.

Counsel information for Burger King was not available Friday.

The case is Gesten v. Burger King Corp., case number 1:17-cv-22541, in the U.S. District Court for the Southern District of Florida.