One of the more deceptive activities in which retailers often engage is the collection of personal identification information from their customers (often called "data mining"). Fortunately, the more invasive forms of data mining are against the law in many states. In particular, laws in Massachusetts (Chapter 93 § 105) and California (Civ. Code, § 1747.08) specifically prohibit retailers from requesting personal identification information from consumers using a credit card to make a purchase. The law specifies that retailers may not ask for personal identification information, including but not be limited to addresses or phone numbers. The purpose of the law is to protect the privacy of consumers; no one should have to disclose such personal information to make a credit card purchase.
Unfortunately, many retailers believe they can evade the law by simply asking for consumers’ zip codes. Retailers then use third-party databases that act like reverse phone books, allowing them to identify their customers’ addresses and telephone numbers using only their zip codes and names (thus gathering the very information that is specifically prohibited by law). The retailers then either use that information to send junk mail and unwanted solicitations directly to consumers, or worse, sell that information to third parties, who in turn engage in their own intrusive marketing campaigns.
However, the law is now clear that the collection of zip code information falls within the meaning of Chapter 93 § 105. In interpreting Civ. Code, § 1747.08, a nearly identical statute, the California Supreme Court recently held in Pineda v. Williams-Sonoma Stores, Inc., 51 Cal. 4th 524 (2011) that the collection of zip codes is unlawful. Nevertheless, many Massachusetts retailers continue to collect zip codes, in clear violation of the law.
If you used a credit card to make a purchase in Massachusetts or California and the retailer asked you for your zip code, or otter personal identification information, please contact us to discuss your legal options.