Congress Passes Chamber-Backed FACTA Clarification Bill

On Tuesday, May 20, the Senate passed legislation (H.R. 4008) supported by the U.S. Chamber that will amend the Fair and Accurate Credit Transaction Act (FACTA) to make clear that a company is not in willful violation of the act if it shortens a consumer’s credit card number printed on a receipt to four digits but does not remove the expiration date. The House passed the bill a week earlier.

More than 300 class action lawsuits have been filed nationwide against retailers, restaurants and other businesses, putting them at risk for billions of dollars in damages without requiring evidence of actual harm or account fraud.

The Chamber sent a letter to members of the House last week in support of the bill, noting that it still “preserves a consumer’s right to sue in the event of actual harm or account fraud” but will close the loophole of a well-meaning law that has led to small businesses being hit with abusive lawsuits.

Read the letter.

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