Storing customer ZIP codes violates California law
By Denny Walsh and Rick Daysog, Sacramento Bee
Consumer advocates were celebrating, and retailers were shocked Thursday, when the California Supreme Court declared that state law bars a merchant from asking for a customer’s ZIP code and recording it as part of a credit card purchase.
As part of an address, a ZIP code qualifies as personal identification information, so when a merchant asks a customer for it and records it as part of a transaction, that violates California’s Credit Card Act, the high court ruled.
The unanimous 17-page opinion outlaws the widespread practice and strikes down an appellate court’s 2009 decision.
The defendant, high-end household goods giant Williams-Sonoma Stores Inc., offers no reason that would justify departing from the “statute’s plain language, protective purpose and legislative history,” the court concluded.
Through both its attorney and its marketing vice president, San Francisco-based Williams-Sonoma declined to comment.
Oh my, the Grocery Outlet was doing that for several weeks recently. I never thought anything about it, just thought it was part of marketing research, but I can see where, if it was connected to a credit card, it could be used for fraud very easily. Bummer!
I am actually relieved when I am required to provide such information for a credit card purchase. Many companies that issue credit cards require no verification or signature if the transaction amount is under $25 or $100, depending on their particular criteria.
I telephoned one of the companies with whom I have a credit card, to voice my concern should the card ever be lost or stolen. I was told, don’t worry, you will be protected, albeit it may be a long and difficult process to get things straightened out.
Using the ZIP Code for marketing, I object. Using it for identity verification, I applaud. I would rather not deal with identity theft or the hassle of “finally straightening out things” if the card was lost.
Unintended consequences of a vote that did not take into account all possible ramifications.
I will continue to not use a credit card for transactions at places that do not require any type of verification or signature, e.g. Walgreen’s.