Many IKEA customers could benefit from a class-action settlement

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The retailer was accused of revealing too much credit card information

If you shopped at IKEA and used a payment card between Oct. 18, 2017, and Dec. 31, 2019, you could be eligible for compensation from a $24 million settlement of a class-action lawsuit.

The retail chain was accused of violating the Fair and Accurate Credit Transactions Act’s (FACTA) provisions on Identity Theft Prevention and Credit History Restoration. It allegedly printed more than the last five digits of the card number on receipts. The company agreed to the settlement without admitting any wrongdoing.

The first step in making a claim is to visit the settlement website. There, you can print out and submit a claim form, but you shouldn’t delay. The filing deadline is May 4, 2023.

“You will receive a payment and will give up your rights to sue IKEA and/or any other released parties (“Defendant Releasees,” as defined in the Settlement Agreement) on any Released Claim, as defined in the Settlement Agreement,” the claims administrator writes. “The claims administrator may seek additional information from persons who submit publication claim forms to validate claims.”

Payouts are expected to be small

It is not yet known how much eligible customers will receive. It’s estimated that 40% of the $24,000 will cover attorney’s fees so consumers will split about $15 million.

Payments will also be contingent on court approval of the settlement. A decision could come after the May 4 deadline for filing a claim.

Also, customers should no that compensation is not expected to be all that generous. In its analysis, CNET estimates each claimant will get between $30 to $60.

FACTA is a federal law enacted by the U.S. Congress in 2003. Its stated purpose is to enhance consumer protection, particularly in relation to identity theft.

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