Consumer Law

Shoppers Don't Have to Give their ZIP Codes to Retailers, Rules California Supreme Court

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Often in the forefront as far as recognizing consumer rights is concerned, California law gives consumers the right to withhold their ZIP code from retailers, the California Supreme Court decided today.

Under the state’s constitutional right of privacy and the Song-Beverly Credit Card Act of 1971, which protects consumers’ “personal identification information” in credit card transactions, a ZIP code request is excessively invasive, reports Reuters Legal in an article reprinted by Westlaw.

A copy of the 17-page opinion can be found on Scribd.

By providing just a ZIP code, plaintiff Jessica Pineda and her counsel contend, consumers can unwittingly help retailers compile and sell detailed databases about their shopping habits.

A lawyer who represents the defendant retailer, Williams-Sonoma, declined to comment.

But lawyers for other companies expressed unhappiness over what one described as a sweeping rule and concern that the case could create retroactive liability for those who previously sought shoppers’ ZIP codes. (Violations of the Song-Beverly law reportedly can be punished with a $1,000 civil penalty.)

Such litigation has given some companies pause about doing business in California, partner David Faustman of Fox Rothschild tells the legal publication.

A post by The UCL Practitioner, who attended oral arguments in the case last month, offers additional details about the case.

Related coverage:

ABAJournal.com: “Beyond Big Brother: Some Web Hosts Are Watching Your Every Keystroke”

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