Crate & Barrel Call Recording Class Action Lawsuit Survives Dismissal Bid

Barrel must face a privacy class action lawsuit accusing the retailer of unlawfully recording customer phone calls after a California federal judge rejected its argument that customer service calls are exempt from state privacy laws.

On May 16, U.S. District Judge Virginia A. Phillips denied Crate & Barrel’s motion to dismiss the class action lawsuit, saying the plaintiff met the minimum pleading requirements to allege a claim under California’s Invasion of Privacy Act.

“All that plaintiff must allege to state a Section 632.7 claim is that ‘defendant received her communications via calls made on her [wireless] phone, that defendant recorded the calls, and that defendant did so without obtaining her consent,’” Judge Phillips said.

Phillips rejected Crate & Barrel’s argument that the calls fell under a “service-observing” exemption of the law, saying she’s “not convinced” the California legislature intended customer service calls to be “confidential communications” under Section 632.

“Even if a service-observing exception to Section 632.7 did exist, defendant cannot demonstrate, at the motion to dismiss stage, that the call recording and monitoring that occurred here was for service purposes,” Judge Phillips said in her opinion. “Accordingly, defendant’s motion fails.”

Lead plaintiff Therese Sentz alleges in the class action lawsuit that she called a Crate & Barrel store in November 2012 to inquire about receiving a discount on future purchases. Sentz says she was not informed that the call was being recorded, but later learned that Crate & Barrel records all incoming phone call. Sentz sued Crate & Barrel in February 2013 for allegedly violating California’s Invasion of Privacy Act.

Crate & Barrel reached a class action lawsuit settlement earlier this year to resolve allegations it violated privacy laws by requesting and recording customers’ ZIP codes during credit card transactions.

The Crate & Barrel Call Recording Class Action Lawsuit case is Therese Sentz v. Euromarket Designs Inc et al., Case No. 5:13-cv-00487, in the U.S. District Court for the Central District of California.

Sentz is represented by Scott J. Ferrell, Richard H. Hikida and Victoria C. Knowles of the Newport Trial Group.

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