Court Ruling Nixes ZIP Code Request by Retailers

The California Supreme Court unanimously ruled that stores cannot ask customers for their ZIP codes at the cash register.

February 14, 2011

SAN FRANCISCO - The California Supreme Court ruled last week that retailers cannot request ZIP codes from customers at time of purchase, CNN reports. The court found that such a practice violated a state consumer privacy regulation.

Most retailers nationwide ask customers for their ZIP codes, but the California Supreme Court's seven justices unanimously determined that this practice goes too far, reports CNN. The ruling, penned by Justice Carlos Moreno, points to a 1971 state law that prohibits businesses from asking credit cardholders for "personal identification information" that could be used to track them down.

Bill Dombrowski, president of the California Retailers Association, told CNN that it??s "ironic" that a practice intended to protect consumers from fraud is being nixed. "We think it's a terrible decision because it dramatically expands what personal information is, by including a ZIP code as part of an address," he told the news source, adding, "We are surprised by it."

CNN continues that the decision only applies to California and does not specify how or if all business that take credit cards, such as gas stations, would be affected ?" "though it does state that its objection is not over a retailer seeing a person's ZIP code, but rather recording and using it for marketing purposes."

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