Trader Joe’s has agreed to a multi-million dollar payout as part of a class action lawsuit which was brought against the company.
The case has concluded with the retailer agreeing to fund a settlement totaling about $7.4 million.
Not everyone will qualify for compensation, as eligibility depends on a set of specific requirements.
The lawsuit traces back to 2019, when Brian Keim alleged that Trader Joe’s receipts displayed 10 digits from customers’ payment card numbers — specifically, the first six digits and the last four.
Keim argued in the class action complaint that this practice violated an amendment to the Fair Credit Reporting Act known as the Fair and Accurate Credit Transactions Act (FACTA).
The filing also claims that printing too many card digits could have exposed shoppers’ financial information to risks such as identity fraud.
On its website, Trader Joe’s said it had not received reports of identity theft connected to the issue, and it denied the allegations and any liability.
The company added that it chose to resolve the dispute because continuing to litigate could be costly, while still maintaining it was not admitting the claims made in the lawsuit.
They added: “Identity theft is not required to prove a FACTA claim, and therefore you do not need to have suffered identity theft to submit a claim for payment from this settlement.”
The settlement fund is intended to cover eligible customers who shopped at the chain between March 5 2019 and July 19 2019, along with attorneys’ fees and administrative expenses.
To qualify, a person must have received a receipt that displayed more payment card digits than allowed.
Approved claimants will receive a share of what remains after deductions for legal and administrative costs, and Keim is set to receive $10,000.
The exact payment amount will vary depending on how many valid claims are filed, but the settlement notice states Keim estimates an average payment of about $102.45.
Eligible consumers must file a claim either through the settlement website or by phone by June 6 2026, using a class ID number.
For those without a class ID, the process allows entry of the first six and last four digits of the payment card used, along with the purchase date at Trader Joe’s.
Anyone who submits a claim — or takes no action — gives up the right to sue Trader Joe’s over the allegations addressed in the lawsuit.
Those who want to preserve their ability to bring their own claim must opt out of the settlement by June 9 2026.