Microsoft will pay $1.2M to settle class-action suit over misprinted retail store receipts...

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Microsoft has agreed to settle a class-action lawsuit against its retail efforts, paying almost $1.2 million in compensation to customers and legal costs, over an accusation receipts provided by Microsoft Stores provided too much information about a customer's payment details.




The lawsuit, filed in 2015 in the Southern Florida US District Court by Carlos Guarisma, claimed the Microsoft Store in Aventura, Florida printed a receipt that broke the 2003 US Fair and Accurate Credit Transactions Act (FACTA), reports The Register. According to the law, which has required compliance since 2006, retailers are permitted to display the last five digits or the expiry date of a credit or debit card number used in a transaction on a receipt.

It is alleged that the receipt Guarisma received showed ten digits from the card number, with the first six and the last four numbers of the credit card on the paper. The receipt also included other information, including the customer's name and the identity of the salesperson involved in the transaction.

"Despite the clear language of the statute, the defendant willfully or knowingly chose not to comply," the complaint alleges.

According to the settlement proposal, Microsoft has agreed to pay out up to $100 to customers in the United States who shopped at a Microsoft Store with a credit or debit card between November 2013 and February 24 of 2017, while lead complainant Guarisma will receive $10,000. Microsoft is putting up close to $1.2 million to cover the compensation requests, once it is approved by Judge Cecilia Altonaga, with one third of the total potentially being paid out in attorney's fees.

"This was a technical bug that we fixed immediately when it was brought to our attention," a Microsoft spokesperson advised. "We're pleased this matter is resolved and are committed to protecting our customers."

Microsoft started up its Microsoft Stores initiative in late 2009, attempting to sell Windows PCs, Microsoft products, and other services to customers, imitating Apple's retail effort. So far, Microsoft hasn't managed to emulate the success of the Apple Store, opening 106 branches in the United States and 116 stores worldwide.

Comments

  • Reply 1 of 15
    williamhwilliamh Posts: 1,034member
    At least this wouldn't affect very many people ... :#
    jony0tomkarlmacguiicoco3watto_cobra
  • Reply 2 of 15
    Look at that crowd in the store! For real? Really? What planet is this?
    jony0watto_cobra
  • Reply 3 of 15
    calicali Posts: 3,494member
    The real shocker is that Microsoft Store printed any receipts. 
    anantksundaramjony0watto_cobra
  • Reply 4 of 15
    Look at that crowd in the store! For real? Really? What planet is this?
    Yeah I've never seen a Microsoft store as full as that..even in a well populated mall. I've seen Microsoft Stores in both Syracuse, NY (Destiny USA), and Tyson's Corner Mall in VA and neither has ever had a crowd like that inside of them. Sometimes there's a crowd around the TV outside the store which always has the Just Dance crap going but never in the store. 

    To this day I still really don't know the purpose of these stores other than to have a store because Apple does. 
    edited February 2017 redgeminipacaliwatto_cobra
  • Reply 5 of 15
    idreyidrey Posts: 647member
    Look at that crowd in the store! For real? Really? What planet is this?
    Photoshop maybe? Parallel universe? Because I have never seen more than 2 or 3 people in any of their stores. (Atl, Tampa, Miami) and I have been around those several times. Microsoft shops are sad. 
    watto_cobra
  • Reply 6 of 15
    Microsoft is..... DOOMED!!
    watto_cobra
  • Reply 7 of 15
    boredumbboredumb Posts: 1,418member
    idrey said:
    Look at that crowd in the store! For real? Really? What planet is this?
    Photoshop maybe? Parallel universe? Because I have never seen more than 2 or 3 people in any of their stores. (Atl, Tampa, Miami) and I have been around those several times. Microsoft shops are sad. 
    Microsoft's people-centric "Take-Eight-of-Your-Friends-to Work-Day"...?
    Or cardboard cut-outs, I'm not sure which.
    caliwatto_cobra
  • Reply 8 of 15

    LOL.  Let's do the math.

    "According to the settlement proposal, Microsoft has agreed to pay out up to $100 to customers in the United States who shopped at a Microsoft Store with a credit or debit card between November 2013 and February 24 of 2017. ... Microsoft is putting up close to $1.2 million to cover the compensation requests."

    $1.2 million / $100 = 12,000 customers over a 40 month period = 300 customer per month.  So across all the Microsoft stores, 10 customers a day used a credit or debit card to make a purchase? 

    Ok, they say "up to $100" so maybe the average guy only gets $10?  That still means only 100 customers a day!


    caliwatto_cobrabadmonk
  • Reply 9 of 15
    idrey said:
    Look at that crowd in the store! For real? Really? What planet is this?
    Photoshop maybe? Parallel universe? Because I have never seen more than 2 or 3 people in any of their stores. (Atl, Tampa, Miami) and I have been around those several times. Microsoft shops are sad. 
    Looks like some of those "customers" forgot to bring their shadows with them.
    caliwatto_cobra
  • Reply 10 of 15
    macguimacgui Posts: 2,360member
    idrey said:
    Look at that crowd in the store! For real? Really? What planet is this?
    Photoshop maybe? Parallel universe? 
    LOL Exactly what I thought when I saw the pic. MS may not be doomed, but that was good for a laugh.
    watto_cobra
  • Reply 11 of 15

    LOL.  Let's do the math.

    "According to the settlement proposal, Microsoft has agreed to pay out up to $100 to customers in the United States who shopped at a Microsoft Store with a credit or debit card between November 2013 and February 24 of 2017. ... Microsoft is putting up close to $1.2 million to cover the compensation requests."

    $1.2 million / $100 = 12,000 customers over a 40 month period = 300 customer per month.  So across all the Microsoft stores, 10 customers a day used a credit or debit card to make a purchase? 

    Ok, they say "up to $100" so maybe the average guy only gets $10?  That still means only 100 customers a day!


    The article says roughly a third of that amount is for legal fees, so we have to crunch the numbers again... $1,200,000 - 33% = $804,000 / $100 = 8,040 customers / 40 months = 201 customers per month / 30 days = 6.7 customers per day. Sounds about right. Even at $10 per customer, that's about 67 customers per day. Average that out for the $10 - $100 ($50 average), that's 33 customers per day. But... $10,000 of that is going to the guy who filed the complaint. Start over using $794,000 as the starting point... So, yeah... about 6 customers per day on average. Most businesses would have to close up shop in a mall if only 6 customers per day were using credit cards, as credit card usage is well over 50%, meaning an average of 10 people (being generous) per day are shopping, and actually spending money. Sad.
    caliwatto_cobra
  • Reply 12 of 15
    ravnorodomravnorodom Posts: 697member
    It's Photoshoped. If you look at the girl on the right with light blue shirt and with her back facing us, it's the same girl who is cloned on the left side with a pink shirt instead. I think the original photo has very few customers.
    randominternetpersonwatto_cobra
  • Reply 13 of 15

    LOL.  Let's do the math.

    "According to the settlement proposal, Microsoft has agreed to pay out up to $100 to customers in the United States who shopped at a Microsoft Store with a credit or debit card between November 2013 and February 24 of 2017. ... Microsoft is putting up close to $1.2 million to cover the compensation requests."

    $1.2 million / $100 = 12,000 customers over a 40 month period = 300 customer per month.  So across all the Microsoft stores, 10 customers a day used a credit or debit card to make a purchase? 

    Ok, they say "up to $100" so maybe the average guy only gets $10?  That still means only 100 customers a day!


    The article says roughly a third of that amount is for legal fees, so we have to crunch the numbers again... $1,200,000 - 33% = $804,000 / $100 = 8,040 customers / 40 months = 201 customers per month / 30 days = 6.7 customers per day. Sounds about right. Even at $10 per customer, that's about 67 customers per day. Average that out for the $10 - $100 ($50 average), that's 33 customers per day. But... $10,000 of that is going to the guy who filed the complaint. Start over using $794,000 as the starting point... So, yeah... about 6 customers per day on average. Most businesses would have to close up shop in a mall if only 6 customers per day were using credit cards, as credit card usage is well over 50%, meaning an average of 10 people (being generous) per day are shopping, and actually spending money. Sad.

    Right, but this is 6 - 100 customers per day across ALL THE MS STORES!  Do they high five each other back at corporate every time a sale occurs?
    watto_cobra
  • Reply 14 of 15
    wigginwiggin Posts: 2,265member
    I'm wondering if they emailed any receipts with all that info...even more dangerous than a printed receipt.

    But if this bothers you, don't use a credit card in S Korea. I've had receipts there that printed the entire credit card number. And while most merchants hid some of the numbers, it wasn't always the same numbers. So get enough receipts together and you'd be able to piece together most of the full number.
    watto_cobra
  • Reply 15 of 15
    MplsPMplsP Posts: 3,931member
    Ok, aside from dissing a photoshopped marketing image of a Microsoft store, can I say 'Seriously???' All this over a couple extra digits on the receipt? Doesn't anyone remember the days whey they took a carbon imprint of the credit card at the register and it had everything on it, plus the carbon sheet that went in the trash?
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