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December 13, 2013

California court prohibits collection of email addresses in credit card transactions

The US District Court for the Eastern District of California has extended the Song-Beverly Credit Card Act to include consumer email address.

By Verdict Staff

The US District Court for the Eastern District of California has extended the Song-Beverly Credit Card Act to include consumer email address.

Under the new law, retailers in California will not collect customer’s email addresses at the point of sale (POS) during a credit card transaction.

The issue came to light when a complaint was filed by Robert Capp against Nordstrom stating that the retailer had requested for his email address at the time of purchase and subsequently used it to send promotional materials, reported mondaq.

In reply, Nordstrom argued that email addresses do not come under the definition of personal identification information, and that the Song-Beverly Act is preempted by the federal Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003.

The Court, however, concluded that email addresses are indeed personal identification information under the Song-Beverly Act, and ordered retailers not to collect email address during credit card purchases.

Meanwhile, the Court noted that it would permit request of email address after a written receipt is received by the customer.

 

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