NACDS hails passage of lawsuit bill

ALEXANDRIA, Va. Passage in Congress of a bill allowing the inclusion of credit or debit card expiration dates on receipts could put a stop to many “predatory lawsuits” and is a victory for retailers, the National Association of Chain Drug Stores said today.

NACDS is calling Congressional passage of the Credit and Debit Card Receipt Clarification Act a victory for the protection of consumer privacy and for the protection of retailers against frivolous and costly lawsuits.

The bill, which now goes to the President for his expected signature before it can become law, would in effect shield retailers, restaurants and other businesses from one form of privacy-based legal action. It clarifies that printing expiration dates of a credit or debit card on a receipt, along with the last few numbers of that card, has not been a violation of the Fair Credit Reporting Act.

“Retailers have been the victims of predatory lawsuits by class action attorneys based on the printing of expiration dates on receipts, even though this practice has not harmed consumers,” NACDS noted. “The Credit and Debit Card Receipt Clarification Act would open the door for retailers to move to dismiss many of these bogus yet costly lawsuits.”

NACDS president and chief executive officer Steven Anderson called the legislation “a much-needed bogus lawsuit buster,” and he praised its chief sponsors in the House and Senate, Rep. Tim Mahoney, D-Fla., and Sen. Charles Schumer, D-NY. “Frivolous lawsuits are an abuse of the system, a tremendous drain on businesses, a distraction from the real work on important issues like consumer protection, and ultimately an attack on all consumers,” said Anderson. “It is a credit to the Congress and its leaders on this issue that this abuse has been recognized and addressed.”