Macy’s Reached Zip Code Data Collection Class Action Settlement

Macy’s Corporate Services, Inc. has reached a class action settlement to resolve allegations that the company illegally collected personal information from its customers in the course of credit card transactions.

The details of the agreement were not yet revealed. U.S. District Judge Margaret M. Morrow has given Macy’s 60 days to disclose the specifics of the deal to the court or she will re-open the case.

Macy’s was hit with the data collection class action lawsuit by plaintiff Justin Maghen in July 2014, alleging that it required customers to give Macy’s their zip codes and other information in order to process a payment made with a credit card, in violation of California’s privacy laws.

Maghen claimed in his zip code class action lawsuit that when he tried to make a purchase at Macy’s with his credit card, that the sales representative was following company policy when asking him for personal information which included his identification and phone number.

In the class action lawsuit, Maghen claimed that that the Macy’s employee went out of his sight with his personal information in hand.

“Upon return, defendant’s employee asked for plaintiff’s telephone number, without informing plaintiff of the consequences if plaintiff did not provide defendant’s employee with plaintiff’s requested personal identification information,” the Macy’s class action lawsuit said.

Macy’s tried to have the data collection class action lawsuit dismissed in August, saying that Maghen’s lawsuit was both “confusing and uncertain.” The department store chain argued that the class action lawsuit should be dismissed because Maghen did not say that the information he gave to Macy’s employees was actually recorded.

Maghen fought the dismissal with procedural arguments, saying that Macy’s never contacted his attorneys to discuss the motion, in addition to other errors such as leaving out the time of the hearing on the motion along with Judge Morrow’s name.

As a result, Judge Morrow rejected the motion. Maghen filed an amended class action lawsuit not long after the rejection, this time saying that the employees who asked for his personal information did in fact record his phone number.

Maghen was proposing a California class of Macy’s shoppers who had their personal information collected and recorded by a Macy’s employee while making a credit card purchase in the year prior to when the class action lawsuit was originally filed.

A similar class action lawsuit was filed against Macy’s by plaintiff Shirley Ambers in November 2014, making similar claims as Maghen. The two lawsuits were consolidated by Judge Morrow.

Both Maghen and Ambers charged Macy’s with violating California’s Song Beverly Credit Card Act of 1971.

Maghen is represented by Abbas Kazerounian of Kazerouni Law Group APC, by Joshua B. Swigart of Hyde & Swigart and by Sina Rezvanpour of RKR Legal.

Macy’s is represented by Dana J. Dunwoody of Sheppard Mullin Richter & Hampton LLP.

The Macy’s Zip Code Class Action Lawsuit is Maghen v. Macy’s Corporate Services Inc., Case No. 2:14-cv-05874, in the U.S. District Court for the Central District of California.