Latest blow to collecting Zip codes at check-out [View all]

[SecularMotion]

A ruling by the Massachusetts Supreme Court is the latest obstacle to the commonplace practice of retailers asking consumers for their Zip codes at check-out.

In a case against Michaels Stores, the court ruled that Zip codes are personally-identifiable information. Similar rulings in California and elsewhere may soon make retailers think twice about the practice, since this could easily be the first of an endless series of expensive lawsuits filed by consumers.

The court's ruling came in a class action case on behalf of plaintiff Melissa Tyler, who charged that by collecting her Zip code when she paid with a credit card, the crafts store was violating a state law that prohibits merchants from requiring personal information when paying with a credit card.

Consumers and privacy advocates have recently become energized about the widespread practice, which many had previously assumed was part of the credit card authorization process. In fact, it is usually a market research effort.

http://www.consumeraffairs.com/news/latest-blow-to-collecting-zip-codes-at-check-out-040513.html