Several identity theft victims filed a series of class action lawsuits against firms that had not made the changes required by the Fair and Accurate Credit Transactions Act (FACT) by the statutory deadline.

One of the issues before the court was whether the victims had to demonstrate that the offending company deliberately refused to comply or did so with reckless disregard for the new requirements.

Which standard would be the appropriate one in this situation? Explain. Amanda Bronstad, “Suits Multiply over Credit Card Exposure: Cash Registers Displaying Too Many Digits Spark Dozens of Class Actions,” The National Law Journal, February 19, 2007, p. 4.