Urban Outfitters Hit with ZIP Code Class Action Lawsuit

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A class action lawsuit has been filed against Urban Outfitters Inc. and Anthropologie Inc. over allegations the clothing companies collected the ZIP codes of their customers in violation of District of Columbia consumer protection laws.
The class action lawsuit was filed June 21, 2013, in the U.S. District Court for the District of Columbia. The complaint accuses the retailers — which both operate under the parent company Urban Outfitters Inc. — of asking for consumers’ ZIP codes in a manner that implied that the information was necessary to complete a credit card transaction. The plaintiffs allege that Urban Outfitters used the ZIP codes to track down their customers’ addresses for marketing purposes. They argue that this type of behavior has been illegal in D.C. for at least 16 years.

Plaintiffs cited recent news reports that demonstrated how retailers can track down a customer’s address with the customer’s name, which is listed on a credit card, and the ZIP code. The plaintiffs allege that retailers can use ZIP codes to match customers’ names with their ZIP codes “to identify the customers’ home/business address via commercially available databases. Thus, once the customer provides his/her ZIP code, the retailers have all the information they need to secretly obtain customers’ home/business address,” according to the Urban Outfitters ZIP code class action lawsuit.

“By asking for ZIP codes when credit cards are used without disclosing that such information is optional and that such request is prohibited by law, or by implying that such information is necessary to complete the transaction, Defendants are using deceptive representations in connection with the sale of goods,” the class action lawsuit states.

The plaintiffs allege that, under D.C. Code, it is illegal for a merchant to ask for a customer’s telephone number or address as a condition of processing a credit card transaction. In the class action lawsuit, the plaintiff argues that the law applies because a ZIP code is part of an address.

The proposed Class would include anyone who purchased merchandise from Urban Outfitters or Anthropologie in June 2010 or later and were asked for their ZIP codes while they checked out. The plaintiffs are seeking $1,500 per violation of the District of Columbia Consumer Protection Act, $500 per violation of the local consumer identification information law, punitive damages and an injunction to bar Urban Outfitters stores from collecting ZIP codes during credit card transactions.

As consumer protection awareness grows, there will likely be more class action lawsuits against companies that seek identifying information from customers. The Massachusetts Supreme Court has ruled that asking for ZIP codes during transactions violates consumer privacy laws. A California court has made a similar ruling against Williams-Sonoma.

The Urban Outfitters ZIP Code Class Action Lawsuit case is Whitney Hancock, et al. v. Urban Outfitters, Inc., et al., Case No. 13-cv-00939-BAH, U.S. District Court, District of Columbia.

The plaintiffs are represented by Scott M. Perry and Mikhael D. Charnoff of Perry Charnoff PLLC.

UPDATE: On June 24, 2016, the plaintiffs argued, on appeal, that they continue to have standing to sue Urban Outfitters even after the Supreme Court’s recent decision in Spokeo Inc. v. Robins which reportedly limits the kinds of harm plaintiffs may have standing to sue over.

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