Trader Joe's customers to get payouts under $7.4 million settlement

Consumer Trader Joe's customers to get payouts under $7.4 million settlement. See if you qualify. By Carlos E. Castañeda Carlos E. Castañeda Senior Editor, News & Social Media Carlos E. Castañeda is a senior editor of news and social media for CBS Bay Area. Read Full Bio Carlos E. Castañeda Updated on: April 21, 2026 / 5:19 PM EDT / CBS San Francisco Add CBS News on Google Some Trader Joe's customers will receive a payout after the grocery chain reached a legal settlement over its privacy practices. The case involves a 2019 class-action lawsuit filed in Los Angeles Superior Court by shopper Brian Keim, who alleged that receipts from Trader Joe's stores displayed the first six and last four digits of his credit card, increasing the risk of identity theft. The original complaint was filed in Florida after Keim shopped at a Trader Joe's in Palm Beach Gardens. The case was later transferred to the Central District of California since the retailer is headquartered in Monrovia, Los Angeles County.The federal Fair and Accurate Credit Transactions Act (FACTA) includes a provision prohibiting businesses from printing more than the last five digits of a customer's credit or debit card number on any electronically printed receipt. The 2003 law also allows consumers to recover damages from businesses that fail to comply.What is the Trader Joe's settlement?Trader Joe's said it was unaware of any identity theft resulting from the receipts and did not admit any wrongdoing, noting that it chose to settle the lawsuit to avoid further litigation. In February, the company and the plaintiff reached a tentative $7.4 million settlement, which remains subject to final court approval. A fairness hearing is scheduled for August, at which a judge will make a final determination on whether to approve the agreement.Along with offering payments to the plaintiff and for attorneys' fees, the $7.4 million settlement fund will cover payments to people...