Urban Outfitters, Free People Reach ZIP Code Class Action Settlement

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A class action settlement has been reached in two class action lawsuits filed against Urban Outfitters and Free People LLC, who were charged with allegedly collecting ZIP codes from Massachusetts customers illegally. According to the agreement, Class Members will receive a $20 gift card.

The Urban Outfitters, Free People class action settlement was filed on Wednesday in a Massachusetts federal court with U.S. District Judge Douglas P. Woodlock, stating that plaintiff Lauren Miller and the two retailers both agreed to the settlement over the collection of customers’ ZIP codes during the course of credit card purchases.

There are two subclasses in the class action settlement — the “first time collection class” and the “previous collection class.”

The first time collection class is for those individuals who received marketing materials from Urban Outfitters or Free People “after collecting zip codes for the first time following a credit card purchase transaction in a Massachusetts Urban Outfitters retail store between Aug. 15, 2009 and the date of the preliminary approval order or in a Massachusetts Free People retail store between March 26, 2010 and the date of the preliminary approval order.”

The previous collection class is for “customers who provided their zip codes when they ordered merchandize over the telephone, internet, or by mail prior to providing their ZIP codes to defendants in connection with a credit card purchase transaction in a Massachusetts Urban Outfitters retail store between Aug. 15, 2009 and the date of the preliminary approval order or in a Massachusetts Free People retail store between March 26, 2010 and the date of the preliminary approval order, to whom defendants mailed marketing materials.”

The first time collection class will receive a $20 gift card to use during a single visit to either Urban Outfitters or Free People retail stores. The gift cards will only be valid for six months from the date they are issued. They may be combined with other offers and may also be used to purchase sale items.

The previous collection class members will be given $10 gift cards. The same rules will apply for this class as the first time collection class.

The total amount of the Urban Outfitters, Free People ZIP code class action lawsuit is $711,660. The amount does not include attorneys fees and other expenses.

There are almost 35,000 class members in the first time collection class and almost 3,200 class members in the previous collection class members.

Miller filed a class action lawsuit against Urban Outfitters on Aug. 15, 2013 alleging that the retailer had violated Massachusetts state law when collecting ZIP codes from customers when using credit cards to make their purchases. She filed a similar class action lawsuit against Free People on March 26, 2014. Both ZIP code class action lawsuits were filed in Massachusetts superior court and were later transferred to the Massachusetts federal court.

Miller is represented by Todd Garber and D. Greg Blankinship of Finkelstein Blankinship Frei-Pearson & Garber LLP, Preston W. Leonard of the Leonard Law Office PC and David Pastor of Pastor Law Office LLP.

Urban Outfitters and Free People are represented by Lauren M. Palmero of Morgan Lewis & Bockius LLP and Thomas J. Sullivan of Morgan Lewis & Bockius LLP.

The ZIP Code Class Action Lawsuits are Lauren Miller v. Urban Outfitters Inc., Case No. 1:13-cv-12276, and Lauren Miller v. Free People, LLC et al., Case No. 1:14-CV-12018-ADB, in the U.S. District Court for the District of Massachusetts.