In an effort to crack down on credit card fraud, Congress passed a law in 2003 limiting merchant receipts to five digits of a customerâ€™s credit card number or the expiration date, but not both.
Many companies across America complied. But due to some confusion in the law, a number of businesses started printing receipts with both the truncated numbers and the expiration dates.
Even though experts testified in Congress that that is not enough to steal a card or an identity, the glitch opened hundreds of businessesâ€™ cash registers to lawsuits.
On Tuesday, President Bush signed bipartisan legislation introduced by Rep. Michele Bachmann, R-Minn., and Tim Mahoney, D-Fla., that removes statutory damages for the mistake, thereby removing the incentive for class action lawsuits.
How does this help consumers? â€œThe consumers,â€ Bachmann said, â€œpay the lawyersâ€™ bills in the form of higher prices.â€