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Corporate

Feb. 12, 2011

Retailers On the Hook Over ZIP Code Collection

The state Supreme Court ruled unanimously Thursday that asking for a ZIP code during a credit card transaction violates the Song-Beverly Credit Card Act. The ruling could launch a new wave of class action litigation against retailers.


By Laura Ernde


Daily Journal Staff Writer


Retailers are on the hook for potentially millions of dollars in penalties for illegally requesting ZIP codes from customers who pay with credit cards.


The California Supreme Court ruled unanimously Thursday that asking for a ZIP code during a credit card transaction violates the Song-Beverly Credit Card Act. Pineda v. Williams-Sonoma Stores Inc., 2011 DJDAR 2278


The court rejected the...

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