Card Stores Settle Credit Card Receipt Case
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Carlton Cards has agreed to pay $100,000 in costs and penalties and to replace its credit card processing machines statewide to settle a case with the Orange County district attorney’s office and the state attorney general’s office.
In April, the district attorney’s office launched an investigation into all seven of the county’s Carlton Cards specialty retail card and gift stores. Investigators found that the stores were not complying with a new state law that made it illegal for electronically printed receipts to contain more than the last five digits of a credit card account.
Since the investigation and the filing of unfair business practices charges, Carlton Cards Retail Inc., a subsidiary of American Greetings Corp., has upgraded the machines at its 40 locations statewide, officials from the district attorney’s office said.
Officials said that the company was creating identity-theft risks because the receipts could be used to access accounts and create new credit cards.
The company must pay $75,000 in civil penalties and $25,000 to cover investigation costs.
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