A 10-number mistake is costing a popular grocery store a seven-figure settlement.
Trader Joe’s has agreed to pay out a $7.4 million settlement for a 2019 receipt snafu, according to Los Angeles County Superior Court documents. Affected customers could receive an estimated $102.45, although the figure could change depending on how many people join the lawsuit.
Those affected by the mistake should receive an email or mailed notice informing them of next steps. Recipients will have one of four options: submit a claim for a portion of the settlement, opt out of the settlement, object to the settlement or do nothing.
If an affected customer chooses to do nothing, they will not receive a portion of the settlement, court records say.
The lawsuit began on July 17, 2019, when a customer filed a class-action lawsuit in Florida against Trader Joe’s, court documents note. He claimed the company printed receipts for debit and credit card transactions that included 10 digits of the card number. Card transaction receipts can show a maximum of the last five digits of a card number, per the Fair and Accurate Credit Transactions Act.
Through research of his own and the help of a consultant, Keim discovered that the mistake impacted “757,663 unique class member card numbers,” court documents show. Trader Joe’s analyzed Keim’s findings and agreed they were accurate.
Court records indicate that just under half of the $7.4 million settlement will pay for attorney fees and costs, and other court-related fees. The three law firms involved in representing Keim and other participants will each receive one-third of a $2.5 million payout.
The $7.4 million figure still has to be approved by the court. An approval/denial hearing is slated for 8:30 a.m. on August 10, according to court records.
Other notable settlements in the company’s recent history include a $3.4 million payout in 2014 for inaccurate “all natural” and “100% natural” labelling on certain food products that contained artificial materials, according to Trial Lawyer Magazine.
In 2016, a customer filed a lawsuit against the grocer for underfilling tuna tins that claimed to contain 5 ounces of fish. Federal testing indicated that the sample tuna tins they tested contained up to 24.8 percent less than what federal regulations required. Trader Joe’s eventually agreed in 2021 to pay out a $1.3 million settlement.
