OfficeMax Agrees to ZIP Code Class Action Settlement

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OfficeMax has reached a class action lawsuit settlement with California consumers who were asked to provide their ZIP codes during credit card transactions – a practice that’s illegal under state law. Eligible customers will receive up to $15 in merchandise vouchers if the class action settlement is approved.

The OfficeMax ZIP code settlement will resolve two class action lawsuits consolidated in 2011 that accuse the office supply retailer of requiring cashiers to ask for ZIP codes from customers paying with credit cards. Plaintiffs allege this practice violated California’s Song-Beverly Credit Card Act, which prohibits retailers from asking for personally identifiable information as a condition to make a credit card payment.

OfficeMax denies any wrongdoing in agreeing to the settlement, and noted in its motion for preliminary approval that it immediately ordered employees to stop asking for ZIP codes following a February 2011 decision in Pineda v. Williams-Sonoma Stores Inc. that banned the practice.

In a previous motion, OfficeMax had argued that it shouldn’t be punished retroactively for collecting the information because it stopped the practice immediately after the Pineda ruling. It also argued that customers gave their ZIP codes voluntarily and that the company never used the ZIP codes in ways that violated the consumer privacy concerns underlying the Song-Beverly Act, such as for direct marketing purposes or to sell to third parties.

Those arguments were struck down in June 2012 by U.S. District Judge Yvonne Gonzalez Rogers, who said a California appeals court ruling in Alvarez v. Brookstone Co. Inc. applied the Pineda decision retroactively. Judge Rogers also said the intent of OfficeMax’s collection of ZIP codes was irrelevant.

Under the proposed class action lawsuit settlement, OfficeMax will hand out $600,000 in merchandise vouchers to customers who make purchases in OfficeMax California retail stores. Additionally, all Class Members who submit a valid and timely Claim Form will receive a $10 merchandise voucher. The Class is defined as all consumers who made a credit card purchase at a California OfficeMax retail store between March 1, 2010 and February 22, 2011 and whose ZIP codes were requested and recorded by an OfficeMax employee.

Details on how to file a claim for the OfficeMax ZIP code settlement were not immediately available. Notices of the class action settlement will be posted in stores and emailed to MaxPerks members within 42 days after the Court grants preliminary approval of the settlement, according to court documents. A settlement website will be launched within 14 days after preliminary approval.

The OfficeMax ZIP Code Class Action Lawsuit Settlement case is Dardarian, et al. v. OfficeMax Inc., Case No. 11-cv-00947, U.S. District Court for the Northern District of California.

The plaintiffs are represented by Gene Stonebarger and Richard D. Lambert of Stonebarger Law APC and H. Tim Hoffman and Chad A. Saunders of Hoffman Libenson Saunders & Barba.

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 1: Plaintiffs submitted a revised class action settlement agreement after a federal judge refused to approve the original deal at the preliminary approval hearing.

UPDATE 2: A federal judge granted preliminary approval to the revised OfficeMax ZIP Code Class Action Settlement on Nov. 14, 2013. Keep checking Top Class Actions for claim filing instructions or sign up for our free weekly e-newsletter below.

UPDATE 3: Detailed claim filing instructions for the OfficeMax ZIP Code Class Action Settlement can be found here. The deadline to file a claim is Feb. 10, 2014.