Retailers Need to ZIP Up Their Class Action Defenses in California
A significant legal development has occurred that directly impacts any retailer with business operations in California.
Retailers who ask customers for their ZIP codes at the time of a credit card purchase may now find themselves the subject of class action claims alleging violations of California’s Song-Beverly Credit Card Act (the Credit Card Act). There has been a recent flood of plaintiffs’ cases filed in California state and federal courts. These class action lawsuits request a penalty of up to $1,000 for each customer whose ZIP code was requested by a retailer in the last 12 months. Thus, the penalties requested for alleged violations of the Credit Card Act are astronomical.
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