Lawsuits and legal action are common in the food world – and that doesn’t look like it’s going to change any time soon. So far in 2026, we’ve seen Costco being sued for allegedly mislabeling its rotisserie chicken, while Buffalo Wild Wings resolved a lawsuit against the company that accused it of not using actual chicken in its boneless wings. Now, it’s Trader Joe’s turn. The retailer has just settled a class action lawsuit filed against it concerning customer privacy, and the resolution is a hefty payout.
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And there’s a chance (albeit a fairly small one) that you might qualify. Here’s what’s going on.
What Was the Lawsuit Filed Against Trader Joe’s About?
The lawsuit that Trader Joe’s has just reached a settlement in was filed in 2020 by Brian Keim against the Trader Joe’s Company. One of the central allegations in the lawsuit was that the retailer “knowingly or recklessly failed to comply with FACTA by printing ten (10) digits of its customers’ credit card and/or debit card numbers on transaction receipts.”
FACTA, just fyi, is the abbreviation for the Fair and Accurate Transactions Act, which is designed to prevent identity theft and protect consumers’ private information. The lawsuit is therefore predicated on the accusation that Trader Joe’s failed to do this.
While a settlement has been reached, Trader Joe’s “denies Plaintiff’s allegations and vigorously denies any and all liability or wrongdoing whatsoever,” according to the settlement website. It stated that it settled following its insurer advising it that further litigation would be costly and lengthy, and reiterated that by doing so, it does not acknowledge the truth of or validity of the settlement. Nonetheless, it has agreed to pay out $7.4 million, following final approval from the court in mid-August.
What Does That Mean for Me?
If the settlement is approved, then customers who made a purchase at a Trader Joe’s store between March 5 and July 19, 2019, may be entitled to compensation. You can make a claim through the settlement website, and if it’s approved, you may receive a payment. The exact amount that each individual receives will depend on the final number of qualifying claims, but it’s estimated that each person will receive approximately $102.45. Crucially, though, you only have until June 9 to make a claim.
Is This the First Time Trader Joe’s Has Faced Legal Action?
No, it is not. Late last year, Trader Joe’s was sued by Smucker’s, which claimed that it had copied its Uncrustables concept with its own crustless sandwiches. However, legal experts have cast doubt on the ultimate success of the Uncrustables lawsuit, stating that while they might have ownership over the name, they may not be able to convincingly argue ownership over the concept of a sandwich without crusts.
Thoughts? Questions? Complete disagreement? Leave a comment!