Ikea Must Defend Itself in Consumer Class Action on Collecting ZIP codes

According to Court House News Service, a class can proceed with a lawsuit accusing Ikea of requesting and storing customers’ zip codes when making credit card purchases.

Rita Medellin sued Ikea in February 2011 for violation of the Song-Beverly Credit Card Act after an Ikea cashier took her credit card and asked for her zip code. She gave it, believing the information was necessary for completing the transaction.

Ikea claimed customers often voluntarily provided this information, so they could receive email promotions from Ikea or participate in the retailer’s rewards program.

In certifying the class, U.S. District Judge William Hayes wrote, “The Song-Beverly Credit Card Act does not provide an exception allowing a retailer to request or require the cardholder to provide personal identification information as a condition of accepting a credit card payment when the individual has previously or subsequently provided any personal information to the retailer. Such an exception would contravene one of the purposes of the Song-Beverly Credit Card Act which is to prevent store clerks from obtaining customers’ personal identification information.”

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