Customers who shopped at Trader Joe’s using credit or debit cards during a specified period in 2019 may soon be eligible for compensation as part of a class action settlement. The grocery chain has agreed to pay out $7.4 million to address allegations surrounding the printing of excessive card digits on transaction receipts.
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The claims period encompasses transactions made between 5 March 2019 and 19 July 2019. Customers who made purchases during this timeframe may receive an estimated payout of approximately £102.45, as detailed on the settlement website.
The controversy stems from a lawsuit filed in 2019 by a shopper named Brian Keim. He accused Trader Joe’s of violating the Fair and Accurate Credit Transactions Act (FACTA), which is an amendment to the Fair Credit Reporting Act. Keim alleged that the grocery chain printed ten digits of customer card numbers on receipts, thereby increasing the risk of identity theft.
Trader Joe’s has stated on the settlement website that there have been no reported incidents of identity theft linked to the printing of these receipts. They clarified, “Identity theft is not required to prove a FACTA claim, and therefore you do not need to have suffered identity theft to submit a claim for payment from this settlement.”
The company has denied all allegations of wrongdoing, asserting that only a small number of transactions at certain locations included the compromised receipts. It explained that its insurer deemed the potential litigation to be lengthy, costly, and fraught with uncertainties, leading the company to opt for a settlement instead of continuing to contest the claims.
According to the settlement details, Keim contended that the printed receipts included the first six and last four digits of customer cards, which he claimed compromised the privacy of customers and posed an elevated risk of identity theft. In response to the accusations, Trader Joe’s has agreed to distribute $7.4 million in compensation to affected customers as part of this legal resolution.
Out of this settlement amount, approximately £2.46 million will be allocated towards legal fees, along with a £10,000 incentive payment to Keim for initiating the lawsuit. Customers who submit valid claims will receive a portion of the remaining funds, but the exact payout will depend on how many individuals file claims.
Eligible customers who received communication regarding the settlement are considered part of the settlement class. To claim their payout, customers must submit a claim form to the settlement administrator before the deadline of 6 June 2026. Those with a Class ID number can do so through the website or by contacting the administrator by phone. Customers without a Class ID can still submit a claim by entering the relevant card digits and purchase date.
It is important to note that by submitting a claim, individuals will forfeit their right to initiate legal action against Trader Joe’s regarding this case or any related claims stemming from the receipts in question. Only those who opt out of the settlement by 9 June 2026 will retain the ability to pursue legal action in the future.
Claimants may also express their views on the fairness of the settlement by writing to the court, but they must still complete the claim form if they wish to receive benefits. Furthermore, there will be a fairness hearing scheduled for 10 August 2026, where individuals can voice their opinions to the court regarding the settlement.
Failure to take action will result in individuals being unable to receive compensation and relinquishing their right to pursue legal claims against Trader Joe’s concerning the matter. The court’s approval of the settlement, along with the resolution of any appeals, is necessary before payments can be processed.
In summary, customers who used credit or debit cards at Trader Joe’s during the identified timeframe should stay informed about their eligibility for this settlement and the associated claims process. The impending date for claims submission is set for June 2026, granting individuals ample time to navigate the required steps towards potentially receiving compensation.