Facts

Plaintiff Catherine Peterman bought merchandise from defendant Linens 'N Things Inc., making her purchase with a credit card. In an effort to return the item, Peterman went back to the store to obtain the money paid. Peterman provided the initial receipt for the item as well as the credit card she had used. The sales representative began processing Peterman's return. According to Linens 'N Things' policies, a form was given to Peterman which contained personal information including credit card information, the item purchased, the purchase price, the refund amount, and spaces for the customer to input a name, address, and phone number.

PLAINTIFF'S CONTENTIONS:
Peterman, as representative, filed a class-action suit against Linens 'N Things. She claimed that defendant was in violation of Civil Code section 1747.08(a)(3), part of the Song-Beverly Credit Card Act that prevents the use of forms requiring customers to input personal and credit card information.

Settlement Discussions

Mediation was held between the parties before the Hon. Edward A. Infante (Ret.).

Damages

Damages claimed amounted to $1,000 civil penalties per violation.

Result

The parties reached a settlement agreement that included an equitable award. The authorized claimants (individuals who returned products to a store owned by defendant from July 18, 2005 to August 30, 2006, made purchases with a credit card, and were handed a transaction form consisting of pre-printed spaces) qualified for a discount voucher equaling 45 percent off purchases of one item with a value not to exceed $100. A limit of 800,000 vouchers, which amounted to $36 million, was distributed. Defendant agreed to stop using credit card transaction forms with pre-printed spaces for inputting purchasers' personal identification information. Peterman was given a $1,000 incentive award and $140,000 in attorney fees.

Other Information

FILING DATE: July 18, 2006.