Apple Hit with ZIP Code Collection Class Action Lawsuit

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Apple Inc. has been hit with a class action lawsuit that claims retail store employees forced customers into providing their ZIP codes during credit card purchases, in violation of Massachusetts state law, and then sold this information to third-party companies for marketing purposes.

The Apple ZIP code class action lawsuit was filed on Jan. 15 by Massachusetts residents Adam Christensen and Jeffrey Scolnick, along with California resident William Farrell, who claim to have all purchased items from Apple retail stores in Massachusetts, and were asked to provide their ZIP codes during their credit card purchase.

“As a condition of using their credit cards, plaintiffs were required by Apple to enter personal identification information associated with the credit card, including their full and complete ZIP codes,” the class action lawsuit states. “Apple would not allow plaintiffs to complete their purchases without supplying such information.”

State law prohibits companies that accept credit cards from requiring customers to submit any personal identification information, such as a ZIP code, phone number or address, that’s not necessary to complete the transaction. Apple allegedly made customers believe they had to provide their ZIP code in order for their credit card to be processed, and then sold this information “to strategic partners that work with Apple to provide products and services, or that help Apple market to customers,” the class action lawsuit claims.

The class action cites the Supreme Judicial Court of Massachusetts, which ruled in March 2013 that ZIP codes do fall under the category of personal identification information (PII), and says collecting such information is in violation Massachusetts state law.

“‘No person, firm, partnership, corporation or other business entity that accepts a credit card for a business transaction shall write, cause to be written or require that a credit card holder write personal identification information, not required by the credit card issuer, on the credit card transaction form,'” the Massachusetts Unfair Trade Practices Act states. “‘Personal identification information shall include, but shall not be limited to, a credit card holder’s address or telephone number.'”

The plaintiffs charge Apple with violating this law, saying that under the act, the collection of PII is an ”’unfair and deceptive trade practice.'”

The plaintiffs claim they have been injured by Apple’s data collection because they have received marketing materials they do not want, because Apple has violated the Massachusetts business law, and because their information was used for Apple’s own economic value when that is not an appropriate use.

The Apple ZIP code class action lawsuit is brought on behalf of all persons from whom Apple requested and recorded personal identification information in conjunction with a credit card transaction occurring in Massachusetts.

The plaintiffs are asking that Class Members be paid statutory damages of $25 for each violation of the Massachusetts business law and a double or tripling of that amount as is appropriate, according to the law.

The paintiffs are represented by Alexander Shapoval and Joseph J. Siprut of Siprut PC.

The Apple ZIP Code Class Action Lawsuit is Christensen, et al v. Apple Inc., Case No. 1:14-cv-10100, in the U.S. District Court for the District of Massachusetts.

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.

UPDATE:  A status conference for the Christensen v. Apple ZIP code class action lawsuit has been set for May 29, 2014.