On August 4, a New Jersey federal judge denied a motion to dismiss a putative class action against J. Crew Group involving allegations of Fair and Accurate Credit Transactions Act violations for printing more than the last five digits of consumers’ credit card numbers on sales receipts. The named plaintiff alleged that J. Crew violated FACTA willfully because it had actual knowledge of the Act’s requirements through an industry consortium and its negotiated insurance policy, which excluded FACTA coverage.
According to the New Jersey federal judge, “The facts alleged indicate that, at the very least, defendants ignored an obvious and unjustifiably high risk of violating FACTA.” The Court, in its ruling, found that a sophisticated organization such as J. Crew should have been aware of FACTA and its requirements.
The named plaintiff referred to J. Crew’s motion as “premature at best” because it had arguably presented little facts in support of its claim that its subsidiary entities were improper parties.
The case is Kamal v. J. Crew Group, Inc., et al., Civil Action No. 2:15cv190 in the United States District Court for the District of New Jersey.