Controversy Grows as Class Action Expands
Settlement Amounts to About 40,000~80,000 KRW Per Person
On the 16th (local time), according to Chicago media and the class action-related website (IKEA US FACTA Class Action), IKEA faced a lawsuit after exposing more than five digits of customers' credit and debit card numbers on paper receipts issued at its U.S. stores.
Global furniture and home goods manufacturer 'IKEA' has been sued in a class action lawsuit in the United States for exposing customers' personal information on receipts, resulting in a compensation payment exceeding 30 billion KRW. [Photo by Pixabay]
Customers Willard Richardson and Jamie Yomans, who visited IKEA, filed a lawsuit against IKEA North America and its U.S. corporation in October 2019 after noticing that the first six and last four digits of their card numbers were printed on IKEA receipts.
Richardson claimed that IKEA violated the federal law 'FACTA' (Fair and Accurate Credit Transactions Act) concerning the use of credit information. The lawsuit was initially filed in Los Angeles County Court, California, but later expanded into a class action and was transferred to Cook County Court in Illinois, which has jurisdiction over Chicago.
The plaintiffs pointed out in the complaint that under FACTA, enacted in 2003 and effective from December 2006, businesses must not reveal more than five digits of customers' financial account information or card expiration dates on receipts.
IKEA argued that it did not commit any wrongdoing warranting liability. However, to amicably resolve the lawsuit, it agreed to pay a settlement of $24.25 million (approximately 32 billion KRW).
Anyone who purchased items at IKEA stores in the U.S. and paid with a credit or debit card between October 18, 2017, and December 31, 2019, can claim the settlement. The deadline to submit settlement claims is May 4. The attorneys stated, "Claims can be made even without receipts," explaining that IKEA transaction data will be verified.
The legal team plans to claim $9.7 million (approximately 12.7 billion KRW), which is 40% of the total settlement amount, as attorney fees. Additionally, plaintiffs who participated in the initial lawsuit are expected to receive incentives of $10,000 (approximately 13 million KRW) each.
After deducting court and administrative costs, the remaining amount will be distributed among the other participants. The legal team estimated that each participant will receive about $30 to $60 (approximately 40,000 to 80,000 KRW).
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