Subway settles class action alleging receipts wrongfully disclosed credit card expiration dates for $31 million

Posted on: April 4th, 2017 by Steve Larson
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Doctor’s Associates, Inc., doing business as Subway, has settled a putative class action with customers who allege the sandwich chain unlawfully printed full credit card expiration dates on receipts. The settlement is reportedly for $31 million, which would be the largest-ever settlement under the Fair and Accurate Credit Transactions Act (“FACTA”).

The motion for preliminary approval indicated that there were approximately 2.6 million people whose credit or debit card information was potentially compromised by the printed receipts showing the full expiration dates of their cards.

The proposed settlement class includes all Subway patrons who received receipts upon purchase that showed their credit or debit cards’ full expiration dates between Jan. 1, 2016, and the date of preliminary approval of the settlement. The class action sought to recover FACTA statutory damages of $100 to $1,000 per receipt. Only about half of U.S. Subway restaurants printed receipts that showed entire expiration dates, and they only did so during a “very limited window of time,” according to the motion for preliminary approval.

The suit is Flaum v. Doctor’s Associates Inc., case number 0:16-cv-61198, in the U.S. District Court for the Southern District of Florida.