Kohl’s ZIP Code Class Action Settlement Gets Final OK

On Wednesday, a Massachusetts federal judge gave final approval to a class action settlement between Kohl’s Corp. and a group of consumers who claim the retailer asked for their ZIP codes during credit and debit card transactions, in violation of Massachusetts law.

The Kohl’s ZIP code class action lawsuit was initially filed by Jacqueline Brenner in April 2013 after a store clerk asked for her ZIP code during a credit card transaction. Under the impression that the ZIP code was necessary to complete the transaction, she complied. However, she claims Kohl’s used the personal information to dig up other personal information about consumers for marketing purposes.

Brenner filed her class action lawsuit shortly after the Massachusetts Supreme Court ruled that ZIP codes should be considered personal identification information because they can be used to track down other consumer information such as phone numbers and addresses, which can be used to send consumers unwanted marketing materials. Therefore, the court concluded that Massachusetts law prohibits retailers from collecting ZIP codes during debit and credit card transactions.

In October, Kohl’s announced that it had reached a class action settlement that will provide $425,000 in gift cards, which will be divided among Class Members who submit timely and valid claims. The Kohl’s ZIP code collection settlement was preliminarily approved on Dec. 5, 2013.

U.S. District Judge Richard G. Stearns granted final approval to the Kohl’s ZIP code settlement on Wednesday, finding that the class action settlement “was negotiated at arm’s length, in good faith, by capable and experienced counsel, with full knowledge of the facts, the law, and the risks inherent in litigating the Action, and with the involvement of the Parties.”

Judge Sterns noted that there was only one objection to the class action settlement, but it was directed at the “perceived excess of legalese” in the notice, rather than the terms of the settlement itself.

The deadline to submit a claim for the Kohl’s ZIP code class action settlement passed on Feb. 4, 2014. To find out more about the settlement, click here or visit www.brennersettlement.com.

A separate Kohl’s ZIP code settlement that affects California consumers was reached in January 2013.

The class is represented by D. Greg Blankinship, Jeremiah Frei-Pearson and Todd S. Garber of Meiselman Packman Nealon Scialabba & Baker PC.

The Kohl’s ZIP Code Collection Class Action Lawsuit is Jacqueline Brenner, et al. v. Kohl’s Corp., Case No. 1:13-cv-10935, in the U.S. District Court for the District of Massachusetts.

If you made a purchase with a credit or debit card from a retail store in California or Massachusetts and were asked to provide your ZIP code during the transaction, you could be eligible to join a class action lawsuit. Many retailers have already agreed to class action settlements, and more are likely to follow. For more information, visit the Merchant ZIP Code Collection Class Action Lawsuit Investigation. Submit your information for a free case review. The ZIP code collection lawyers don’t get paid unless you do.