New Jersey Gov. Chris Christie recently signed a bill amending the state’s gift card law to eliminate the consumer data collection requirements. The law previously required companies operating in New Jersey to maintain records of the name, address, and ZIP code of gift card purchasers. Much to the relief of retailers, the new bill eliminates this requirement.
Prepaid & Stored Value Cards
Prepaid cards, gift cards, gift certificates, loyalty cards - no matter what a client calls it, Arent Fox has it covered. Our attorneys help clients navigate the minefield of federal and state gift prepaid card laws and regulations as well as state escheatment laws dealing with abandoned property.
On March 19, 2015, a Minnesota federal judge granted preliminary approval of Target Corporation’s (Target) proposed $10 million settlement of a class action lawsuit, which arose out of a 2013 data breach that compromised personal information of roughly 110 million of Target’s customers. The proposed settlement would pay out $10 million to the plaintiffs and up to $6.75 million in attorney fees. Consumers affected by the breach could be awarded up to $10,000 in damages each if they can prove damages.
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Ikea recently argued that a class action filed against it based on alleged violations of California’s Song-Beverly Act should not be maintained. Ikea admits that its sales registers prompt sales associates to collect ZIP codes from consumers, but it argues that associates often bypass the prompt. Because it does not have a policy to collect ZIP codes, Ikea claims that it cannot be held liable for the alleged illegal ZIP code collections.
What Made News?
A group of merchants and restaurants, including Netflix Inc., California Pizza Kitchen Inc., and Ralph Lauren Corp., are fighting back in federal court against a Delaware lawsuit alleging that they have been withholding unclaimed gift card balances that are due to the state.
What Made News?
Urban Outfitters is facing yet another putative class action lawsuit over its practice of collecting customers’ ZIP codes in connection with credit card purchases at its retail locations. Last June, Urban Outfitters faced a similar suit regarding this practice in its Urban Outfitters and Anthropologie stores. This time, Free People, an Urban Outfitters subsidiary, is the subject of the suit.
With the proliferation of smart phones and other mobile devices, it has never been easier for brands and marketers to collect data about the habits and desires of their customers. But, as a group of major national retail stores recently discovered, the proliferation of data has also led to a renewed sensitivity to consumer privacy.
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