ZIP Code Class Action Lawsuits Accuse Merchants of Violating the Law

Every day, it seems like companies want to collect more and more data about consumers to help laser-guide their advertisements. But some states have provisions that curtail the amount of information merchants are allowed to collect, giving consumers a path to civil recourse when companies push too far. As a result, dozens of class action lawsuits have been filed by consumers who say they were illegally asked to provide their ZIP codes during credit card transactions.

ZIP Code Consumer Privacy Laws

More and more, companies are employing metadata—data regarding people’s personal information and shopping patterns—in order to more effectively target advertising. As technology changes, large companies can tailor advertising to customers. However, various privacy laws protect consumers from invasive forms of data mining—the process of harvesting metadata. Most of these laws are designed to use lawsuits as part of the mechanism to enforce the laws. In cases like these, consumer privacy class action lawsuits both act as a deterrent against breaking the laws and a means for victims to receive compensation from their alleged exploitation.

A ZIP code class action lawsuit investigation has been launched in California and Massachusetts into the illegal practice of merchants requesting ZIP codes during credit card transactions. Hundreds of thousands of consumers have been asked for their ZIP codes when making credit card purchases. In both of these states, there are consumer protection laws that actively prevent the collection of this particular piece of identifiable information.

ZIP Code Class Action Lawsuits Grow

In California, the Song Beverly Act, and in Massachusetts, the Unfair Trade Practices Act, prevents companies from demanding this information. These laws seek to protect customers from invasive companies. This has resulted in more than 30 ZIP code class action lawsuits in Massachusetts and more than 100 in California. These ZIP code class action lawsuits allege that various companies demanded consumers provide their ZIP codes in order to process credit cards (for data mining purposes).

Class action lawsuits are a type of group lawsuit in which a group of plaintiffs allege that they have suffered similar harm from the same defendant. Class action lawsuits are designed to save everyone involved resources. Plaintiffs can pool their resources, defendants only have to defend against a single lawsuit, and the legal system only has to spend time and money on litigating a single lawsuit. One of the benefits from this type of setup is that plaintiffs can afford to take action against large companies, when individuals would be unlikely to be able to afford to take legal action on their own.

The ZIP code class action lawsuit investigation is currently seeking consumers in California and Massachusetts who were required to provide their ZIP code in order to make a credit card purchase. Companies have already paid out millions of dollars in settlements for these ZIP code collection lawsuits, but many companies who violated these laws have not yet been sued. Hundreds of thousands of people could potentially be entitled to compensation from these class action lawsuits.

File a ZIP Code Class Action Lawsuit Claim

If you live in either California or Massachusetts, and were required to provide your ZIP code in order to make a credit card purchase, you may be entitled to compensation. You can start to explore your options by visiting the Merchant ZIP Code Collection Class Action Lawsuit Investigation. Here, you can enter information about your situation for a legal review by a trained expert with a background in this type of litigation. The initial consultation is completely free of charge, and can give you valuable guidance on the best steps to take in your specific situation.