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Court ruling on Zip Codes challenges retailers

New York City -- A privacy ruling from California’s highest court which found that the practice of asking credit card customers for ZIP codes constituted a violation of state consumer privacy statutes could have substantial implications for retailers, warns Mac Nadel, retail/wholesale, food & beverage industry practice leader for Marsh Inc.

Within the first 10 days after the decision was issued, law firms filed close to 40 separate class action lawsuits against various retailers, seeking a variety of common law remedies for breach of privacy, attorney fees, and the full statutory civil penalty of $1,000 for each of the alleged violations,” according Nadel said. And the situation continues to evolve.

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