[Congressional Record Volume 154, Number 79 (Wednesday, May 14, 2008)]
[Extensions of Remarks]
[Page E925]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        CREDIT AND DEBIT CARDS RECEIPT CLARIFICATION ACT OF 2007

                                 ______
                                 

                               speech of

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                         Tuesday, May 13, 2008

  Mrs. MALONEY of New York. Mr. Speaker, I rise in strong support for 
H.R. 4008, the Credit and Debit Card Receipt Clarification Act. This is 
common sense legislation that will free hundreds of businesses, from 
large corporations to ``mom & pop'' operations from legal damages that 
could total hundreds of millions or even billions of dollars for their 
harmless failure to redact expiration dates from their credit and debit 
card receipts.
  This bill only provides relief to companies that otherwise complied 
with the Fair and Accurate Credit Transaction Act, also known as FACTA, 
it preserves the right for a customer to sue if real harm or fraud has 
occurred and it does not eliminate a business's obligation to properly 
truncate the account number or to redact the expiration date from its 
receipts.
  I think it is important to point out that we are talking about 
businesses that did everything they thought they were required to do to 
comply with the new standards set forth by FACTA. These are businesses 
that purchased new machines, installed new hardware and incurred the 
expense of producing what they thought or were told was a compliant 
credit or debit card receipt. These are businesses that when they were 
told that they had to truncate the account numbers of credit and debit 
cards, they did so.
  One of my constituents, Steven Hanson, is such a business owner. He 
is the founder and President of B.R. Guest Restaurants. After FACTA was 
enacted into law, Steve tells me that he and his company spent more 
than $300,000 switching out credit card terminals in his restaurant to 
comply with the new law, only to find out that each and every new 
receipt he processed could result in a $100 to $1,000 fine. Steve tells 
me that B.R. Guest has a pending lawsuit against his company that could 
result in a $100 million liability. This is not a liability that B.R. 
Guest or many businesses could absorb. Without this relief, B.R. Guest 
and hundreds of other businesses could be forced to close up shop.
  In addition to B.R. Guest Restaurants, Zabars, Fairway Markets, 
Scholastic Books, Barneys/Jones Apparel Group, Estee Lauder, The 
Knot.com, Bally's North America, Buy Buy Baby and Ross Stores are among 
the New York Businesses named in similar lawsuits.
  It is also important to note that while the lawsuits filed against 
these companies are seeking damages totaling in the hundreds of 
millions, if not billions of dollars, none of the 500 lawsuits that 
have been filed, make any allegation of consumer harm. Identity theft 
prevention experts have testified that the truncation of the credit 
card numbers accomplishes the intent of the statute because a potential 
fraudster would not be able to perpetrate account fraud without having 
the entire correct credit card number. The real harm to the consumer 
would come if Congress does not act. Consumers will be forced to pay 
higher prices to help these businesses absorb the cost of these 
lawsuits or will be faced with fewer options as businesses are forced 
out of business because they can not afford their cost.
  This legislation enjoys wide bipartisan support and has been endorsed 
by The U.S. Chamber of Commerce, the National Restaurant Association, 
Retail Industry Leaders Association, The National Association of 
Theater Owners, The International Franchise Association, The National 
Council of Chain Restaurants and the Food Marketing Institute.
  Mr. Speaker, as I said, this is common sense legislation and I urge 
its adoption.
    




                          ____________________