Home Lawsuits IKEA Class Action Settlement: Addressing Privacy Violations and Compensation for Consumers

IKEA Class Action Settlement: Addressing Privacy Violations and Compensation for Consumers

The world’s leading home furnishing brand IKEA has agreed to settle on a $24.25 million class action lawsuit. The Ikea class action lawsuit, filed under the Fair and Accurate Credit Transactions Act (FACTA), said that IKEA printed receipts showing more digits of payment cards than what the law permits, therefore intruding on consumers’ privacy. This settlement is an important step to provide compensation of the individuals and to resolve the alleged privacy breach.

IKEA Class Action Settlement

Background of the Lawsuit:

The class action lawsuit accused IKEA of overusing credit card details on printed receipts. The settlement included IKEA retail shop customers who used debit or credit cards from October 18, 2017, to December 31, 2019, and got electronically printed receipts containing their payment card number’s first six and final four digits.

IKEA’s handling of payment information throughout the relevant period was alleged to breach privacy standards in printed receipts’ initial six and last four digits. According to FACTA, organizations cannot display more than the last five digits of credit card data on printed receipts for consumer privacy. Customers who committed this offense within the stated time were eligible for payment. IKEA was sued to fix its privacy breach and pay FACTA victims. (For more issues visit: https://en.wikipedia.org/wiki/Criticism_of_IKEA)

IKEA settled for $24.25 million without admitting fault. Class members will get equal compensation for damaged consumers. This resolution emphasizes the importance of obeying privacy laws and handling sensitive financial information lawfully to protect consumers.

Alleged Violation of FACTA:

Electronic receipts cannot include payment card numbers under FACTA. The guideline bans publishing credit card details beyond the final five digits to protect client privacy. A class action lawsuit against IKEA alleged the furniture company violated this prohibition.

The lawsuit alleged that IKEA printed the first six and final four credit card numbers on electronically created receipts throughout the relevant period. According to FACTA, this method violated privacy. Customer financial information is protected by law from unauthorized access and disclosure, protecting privacy and security.

Settlement Terms and Compensation:

Without admitting fault, IKEA paid $24.25 million to settle the class action complaint for Fair and Accurate Credit Transactions Act violations. IKEA claims guilt, but this judgment indicates its dedication to privacy violation cases. The settlement pays privacy-harmed clients within the specified period.

Class members who used a debit or credit card at any IKEA retail shop between October 18, 2017, and December 31, 2019, and obtained electronically printed receipts with their first six and final four numbers are entitled to an equal portion of the net settlement cash. Claim payments depend on participants. At 10% to 5% claim rate, each claimant may receive $30 to $60, according to preliminary projections.

Important Dates and Claim Submission:

The settlement exclusion and objection deadline was May 4, 2023. Class members seeking settlement compensation must submit a valid claim form by the same date. July 28, 2023 is the settlement’s final approval hearing.


The court approval of the class action settlement with IKEA is one of the milestones towards correcting and paying compensation for damages to consumers due to alleged FACTA violations. While IKEA has not effectively admitted guilt, this settlement highlights the brand’s efforts and commitment towards addressing the issue understood and providing redress to those affected. With the final approval hearing around the corner, resolution of this case could offer a model for how to ensure that companies are in compliance with privacy regulations and thus guard consumers against potential breaches with regard to management of sensitive financial data.

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Parul is an experienced blogger, author and lawyer who also works as an SEO content writer, copywriter and social media enthusiast. She creates compelling legal content that engages readers and improves website visibility. Linkedin


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