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A class of California customers who shopped at Lululemon stores in that state will be able to obtain a $25 credit voucher for company products as a result of a recent privacy class action settlement that was preliminarily approved.
The Lululemon class action lawsuit, filed by Lauren Chaikin on behalf of Californians who shopped at stores where employees asked for ZIP codes prior to processing credit card payments, alleged that the company misrepresented the request as one for anti-fraud protection. Instead, she alleges the company did so as a means of later accessing home addresses and other information that it could use to promulgate marketing materials.
Judge Gonzalo P. Curiel agreed to preliminarily approve the Lululemon class action settlement, which will provide a $25 credit voucher to any California consumer who provided his or her email address during a credit card transaction at a California Lululemon store during the applicable Class Period. Judge Curiel said California statute proscribes the request of a ZIP code or other “personal information, which the … corporation … writes … or otherwise records.” Curiel cited case law indicating that California judges considered ZIP codes personal identification information and that state legislative records indicated the goal was to keep a credit card number separate from information that could be used for criminal purposes.
Curiel said the Lululemon class action settlement also makes sense because “any allegation of alleged harm may be difficult to prove.” The decision to approve the Lululemon settlement noted that the relative harm of the record keeping that sparked the consumer privacy class action settlement may be defrayed by the $25 voucher without the possibility of losing the case once it went to trial.
In accepting the terms of the proposed settlement, Lululemon has admitted no wrongdoing and instead is deciding not to expend more money to protect itself against the litigation.
A Final Fairness Hearing will be held March 14, 2014.
The class is represented by Gene J. Stonebarger, Richard D. Lambert and Elaine W. Yan of Stonebarger Law APC, by James R. Patterson of Patterson Law Group and by Brian J. Lawler of Pilot Law PC.
The Lululemon ZIP Code Class Action Lawsuit Settlement is Lauren Chaikin, et al. v. Lululemon USA Inc., et al., Case No. 12-cv-02481, U.S. District Court, Southern District of California.
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
2 thoughts onLululemon ZIP Code Class Action Settlement Preliminarily Approved
we purchased many items from Lululemon
My email was used during card transaction