U.S. Zip Code Retailer Collection Cases — Are They Possible In Canada?

A recent spate of lawsuits filed in the U.S. has questioned the practice of retailers collecting zip codes in order to complete credit card transactions. The scenario is familiar: while a customer is paying for a purchase with a credit card, the cashier asks the customer for his or her zip code. The customer provides the information thinking it is somehow necessary to complete the transaction. The cashier types the zip code into the cash register and the transaction is completed seconds later without further mention of the zip code.

In the class action lawsuit Pineda v. Williams-Sonoma Stores Inc. 51 Cal. 4th 524 (judgment issued February 10, 2011) (Pineda), the Supreme Court of California held that this practice was a violation of California's Song-Beverly Credit Card Act of 1971 (Act), which in section 1747.08 prevents retail merchants from requesting or requiring personal identification information from cardholders and recording it upon the credit card transaction