California Supreme Court: Retailers cannot store ZIP codes
February 11, 2011,
Retailers were shocked by a California Supreme Court decision that retailers cannot ask for and store ZIP codes when customers pay by credit card. The Sacramento Bee reports that the Court held that ZIP codes are part of an address that allows others to identify an individual.
The Court said that with a name and a zip code, retailers can and do manage to identify addresses and phone numbers, in violation of California privacy laws.
Richard Holober, executive director of the Consumer Federation of California, hailed the ruling as "a great victory for consumer protection and common sense. It's nonsensical that a retailer can collect bits and pieces, turn them over to a data aggregation service and have a field day selling the information and otherwise using it for business purposes."
A strong victory for consumers and privacy rights and one that will limit merchandisers' ability to get around the law.
