Bose Hit with Class Action Over Credit Card Law

Bose Corporation was hit with a class action lawsuit alleging the retailer collected customers’ personal identification information in violation of California law.

Lead plaintiff Patrick Keegan claims that Bose, an electronic retailer specializing in speaker technology, collects personal information about its customers as a matter of policy at its retail locations. The Bose class action lawsuit further alleges that this policy violates the Song-Beverly Act in California.

The plaintiff states that the Song-Beverly Act “was enacted to address two principle privacy concerns.” Quoting from case law, Keegan continues, “First, that with increased use of computer technology, very specific and personal information about a consumer’s spending habits was being made available to anyone willing to pay for it; and second, that acts of harassment and violence were being committed by store clerks who obtained customer’s phone numbers and addresses.”

“To promote these purposes,” continues the plaintiff in the Bose class action lawsuit, “the Act prohibits businesses from requesting that cardholders provide personal identification information during credit card transactions, and then recording that information.” Additionally, the plaintiff claims, “[i}n 1991, the Legislature broadened [the Act] from not only prohibiting a business from ‘requiring’ that a customer provide personal identification information, but also forbidding a ‘request’ for personal identification information.”

“This broadening amendment,” argues Keegan, “was intended to prevent businesses from making an end-run around the law by claiming that the customer furnished his personal identification information voluntarily.”

According to the Bose class action lawsuit, the plaintiff made a purchase at a Bose retail store in California in December of last year. The plaintiff alleges that he used a credit card to make the purchase and during the transaction the clerk asked him to provide his driver’s license, address, and telephone number. Keegan claims that the clerk did not explain what would happen if he declined to provide his personal information and he thought he would not be able to make his purchase.

Further, the class action lawsuit alleges that asking for customers’ personal information is a matter of Bose retail policy. “Plaintiff is informed and believes that Defendant engages in a pattern and practice of knowingly requesting, and subsequently recording, personal identification information of its customers, including but not limited to customer’s driver’s licenses, addresses, and/or telephone numbers, at all its retail stores in California as a matter of policy during its credit card transactions.”

According to the Bose class action lawsuit, the plaintiff seeks to represent “[a]ll persons who, within one (1) year prior to filing of the complaint in the within action, and up to and including the date of class certification, purchased merchandise with a credit card at a Bose retail store operated by Defendant in California and were requested to, and did, provide personal identification information which was then recorded by Defendant before or during the credit card transaction.”

The plaintiff is seeking an order from the court enjoining Bose from collecting customers’ personal information as a matter of policy as well as attorney’s fees and costs.

Keegan is represented by Elliot Adler and Brittany Zummer of the Adler Law Group.

The Bose Customer Personal Information Class Action Lawsuit is Keegan v. Bose Corporation, Case No. 3:16-CV-00232-BEN-MDD in the U.S. District Court for the Southern District of California.