"Next Generation" Consumer Class Actions Target Retailers/Franchisors

The plaintiffs' class action bar has set its sights on the next generation of consumer litigation, this time concerning the information that appears on consumers' receipts at the point of sale. At stake are millions and potentially billions of dollars in alleged damages. The odor of "greenmail" is in the air.

The newest wave of lawsuits concerns alleged violations of the Fair and Accurate Credit Transactions Act (FACTA) of 2003 (15 U.S.C. Section 1681 et seq.). Approximately 200 putative class action lawsuits have been filed across the United States since December 2006 against a wide variety of retailers and franchisors, including national brands such as Victoria's Secret, Costco Wholesale, FedEx, Toys "R" Us, Budget and Avis car rental companies, Wendy's, TGI Friday's and a number of regional and local brands. While the lawsuits have focused on retailers and franchisors, any company that sells services via credit cards - from hospitals and healthcare providers to financial