Crate & Barrel Reaches ZIP Code Settlement

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UPDATE: A federal judge approved the Crate & Barrel ZIP code class action settlement on June 28, 2013. Merchandise certificates were mailed July 8 to Class Members who did not opt out. Learn more here.

Crate & Barrel has reached an estimated $3 million class action lawsuit settlement over allegations it violated California law by asking customers to provide their ZIP codes when making credit card purchases.

The exact amount of the Crate & Barrel ZIP code settlement was not released, but according to a settlement memorandum filed Wednesday, Crate & Barrel agreed to provide about $2.5 million in merchandise credits to Class Members and has set aside up to $490,000 in attorneys’ fees.

Consumers sued Crate & Barrel in 2011 alleging the home decoration retailer violated the Song-Beverly Credit Card Act, which prohibits companies from asking for personal information during credit card transactions, including phone numbers and ZIP codes.

In all, a total of seven class action lawsuits were filed.

Crate & Barrel denies it violated the law and maintains it only asked for ZIP code information after the credit card transactions and not during them, and stopped the ZIP code policy in its California stores in February 2011.

The Crate & Barrel ZIP Code Class Action Lawsuit Settlement case is Shughrou v. Euromarket Designs Inc., Case No. 11-cv-02325, U.S. District Court for the Northern District of California.

The plaintiffs are represented by Patterson Law Group APC, Stonebarger Law APC, Hoffman & Lazear, Morris and Associates, and the Terrell Law Group.

Have you been asked to provide your ZIP code during a debit or credit card transaction at a California or Massachusetts store? You may be eligible to participate in a class action lawsuit and pursue compensation. See if you qualify for free at the Merchant ZIP Code Class Action Lawsuit Investigation.

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions