What Made News?
The Ninth Circuit has affirmed the dismissal of a putative class action against Redbox, holding that its ZIP code collection practices fall within an exception to California’s Song-Beverly Credit Card Act of 1971 (Song-Beverly Act).
Details of the Case
Under the Song-Beverly Act, retailers are prohibited from collecting personal identification information in connection with a credit card purchase. Following a California Supreme Court decision, ZIP codes fall within the definition of “personal identification information.” There is, however, an exception to the Song-Beverly Act that allows for the collection of such information where the “credit card is being used as a deposit to secure payment in the event of default, loss, damage, or other similar occurrence.” Redbox was able to rely on this exception.