Legal Alert: Court Restricts California ZIP Code Collection Prohibition
Court Holds Song-Beverly Act's Prohibition on Collecting ZIP Codes Does Not Apply to On-line and Automated Transactions


by Timothy Toohey

The United States District Court for the Central District of California in two recent cases has limited the applicability of the credit card data collection provisions of California's Song-Beverly Act (the Act) to "brick and mortar" transactions. In orders dismissing with prejudice Mehrens v. Redbox Automated Retail LLC and Salmonson v. Microsoft Corporation et al., the court ruled that the collection of ZIP codes with credit card transactions at self-service unattended kiosks and on-line Internet transactions did not fall within Section 1747.08 of the Act which prohibits collection of certain "personal identification information" from credit cardholders.

[Read the full alert.]