IKEA Shoppers Are Now Eligible for Payouts From a $24 Million Lawsuit Settlement
You could be owed money from the retail giant.
Shoppers have been known to spend the entire day at IKEA, shuffling through aisles of affordable furniture and stuffing their stomachs with Swedish meatballs. So it's safe to say you can easily rack up a pretty penny at one of this retailer's stores. But now, IKEA may actually have to pay you. The furnishing giant has agreed to fork out $24 million to settle claims that it violated consumer privacy. Read on to find out if you're eligible for a payout from this new lawsuit settlement.
READ THIS NEXT: 6 Warnings to Shoppers From IKEA Employees.
Retailers are not allowed to print entire card numbers on receipts.
If you've ever looked at your receipt after paying, you've likely noticed that your entire debit or credit card number wasn't listed. That's because it is illegal under federal law. The Fair and Accurate Transactions Act (FACTA) has required all businesses to shorten financial account information on electronically printed credit and debit card receipts since Dec. 2006, according to the Federal Trade Commission (FTC).
"You may include no more than the last five digits of the card number, and you must delete the card's expiration date," the FTC states on its website. Lawmakers passed this requirement to ensure that businesses are protecting their consumers' private information from criminals—as "card numbers on sales receipts are a "golden ticket for fraudsters and identify thieves," according to the FTC.
But IKEA was accused of violating this law.
One consumer recently claimed that IKEA was not adhering to this requirement. In Oct. 2019, plaintiff Willard D. Richardson filed a lawsuit against IKEA North America Services, LLC. in Los Angeles County Superior Courts. With his class action suit, Richardson accused the retail giant of violating FACTA by including more digits than allowed on its electronically printed receipts, Top Class Actions reported. According to the news outlet, IKEA was allegedly printing the first six and last four digits of card numbers.
The retailer has agreed to settle this lawsuit for over $24 million.
IKEA denies the allegations in Richardson's lawsuit and will not admit to any wrongdoing. But the retailer has agreed to settle the class action outside of court in order to avoid a trial. As a result, IKEA must pay $24,250,000 to resolve the the FACTA violation claims. But the settlement doesn't just cover Richardson. It covers all settlement class members, which may include many of us who have shopped at IKEA in the past.
In this case, anyone who used a debit or credit card to make a purchase at any IKEA retail store in the U.S. between Oct. 18, 2017 and Dec. 31, 2019, may benefit from the settlement. These consumers are considered class members if they were "provided an electronically printed receipt displaying the first six and the last four digits of the credit or debit card number used in connection with such transactions," according to a website dedicated to the IKEA settlement.
You could be eligible for a payout from the IKEA settlement.
If you qualify as a class member, IKEA may owe you some of the money from its $24 million settlement. But you must submit a valid claim form either online or though the mail by May 4 in order to receive a payment. As the class action website explains, your share of the settlement fund will depend on how many class members fill out the form by this deadline. But based on an expected 5 to 10 percent claim rate, it is estimated that everyone eligible will receive between a $30 to $60 payout.
You may be waiting some time for your money, however, as payments will only be made to class members after the settlement receives its final approval and any appeals are resolved. The court overseeing this case has a hearing set for July 28 to decide whether to approve the settlement. After that, there may be appeals. "Resolving them can take time, perhaps more than a year," the class action website states. "Please be patient."