The federal appeals court in Atlanta has overturned a judge’s ruling which dismissed class-action lawsuits in Alabama accusing two businesses of failing to safeguard consumers’ credit information.
The plaintiffs claimed Mexican Specialty Foods Inc. and Rave Motion Pictures of Birmingham violated the Fair Credit Reporting Act by printing more than the last five digits of a customer’s credit card number on electronically generated receipts.
U.S. District Judge William M. Acker Jr. ruled that the law’s provision for statutory damages of $100 to $1,000 for each “willful violation” is unconstitutionally vague and excessive. A three-judge panel found that it isn’t, and sent the case back for a jury to decide if necessary.
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