Protecting Consumer Privacy in Class Action Credit Card Claims
Credit card fraud and cases of identity theft are every consumer’s nightmare. Yet many businesses still fail to protect consumers with something as basic as credit card receipt privacy protections.
There are laws to help protect your privacy when it comes to credit card receipts, like the Song-Beverly Credit Card Act. This law says that stores can’t ask for or record personal information, like your address or phone number when you use a credit card. They also can’t ask for this information to complete a sale.
If a company breaks these rules, they can be sued. Recently, there have been many lawsuits about companies requesting this sensitive information or printing too much information on receipts.
You may be able to get money for damages if companies collect your private information through credit card transactions. The Lyon Firm has nearly two decades of experience in cases involving financial data theft and misuse.
Get in touch with us online or call (513) 381-2333 to learn more about how we can protect your data and privacy.
What Is The Song Beverly Credit Card Act
The Song-Beverly Credit Card Act is a California law designed to protect your personal information during credit card transactions. The main goal of this law is to ensure that when you pay with a credit card, your personal details are kept private and secure.
Under this law, stores and businesses cannot ask for or record certain types of personal information just because you’re using a credit card to pay. This rule helps prevent identity theft and ensures that your credit card information stays safe.
What Is Considered a Violation Of The Song Beverly Credit Card Act?
Here’s a list of what stores are not allowed to ask for under the Song-Beverly Credit Card Act:
- Your Full Name
- Your Address
- Your Phone Number
- Your Email Address
- Your ZIP Code
For example, if you’re shopping at a store and they ask for your phone number or ZIP code while you’re paying with a credit card, this could be against the law.
The Song-Beverly Credit Card Act was put into place to keep transactions private and to make sure that personal information is not collected unless it’s absolutely necessary.
While the Act covers the time during and before the end of a transaction, it does not apply once the transaction is complete. This means that if a store asks for personal information after giving the receipt and merchandise, it may not always be breaking the law.
Retailers who break this law could face legal action, and you might be able to take them to court if they ask for or record personal information during a credit card transaction.
ABOUT THE LYON FIRM
Joseph Lyon has 17 years of experience representing individuals in complex litigation matters. He has represented individuals in every state against many of the largest companies in the world.
The Firm focuses on single-event civil cases and class actions involving corporate neglect & fraud, toxic exposure, product defects & recalls, medical malpractice, and invasion of privacy.
NO COST UNLESS WE WIN
The Firm offers contingency fees, advancing all costs of the litigation, and accepting the full financial risk, allowing our clients full access to the legal system while reducing the financial stress while they focus on their healthcare and financial needs.
“Mr. Lyon was my attorney, and also my family’s attorney. He has always been so great with everything we have brought to him. Highly recommended attorney. Staff was very nice as well, and very easy to work with.”
- Client: Megan Whitesell
Examples of Song Beverly Credit Card Act Litigation
The Song-Beverly Credit Card Act has led to several important court cases where stores were found to be breaking the law by asking for personal information during credit card transactions.
In 2011, Pineda v. Williams-Sonoma Stores, Inc. strengthened the act by asserting that even asking for a customer’s ZIP code during a credit card purchase was illegal. The court ruled that ZIP codes are considered personal information under the law, and stores cannot ask for them at checkout.
Another important case is Florez v. Linens ‘N Things, Inc. Here, the court found that asking for a phone number before completing a credit card purchase could also be a violation of the Act. The court agreed that if a customer feels that giving this information is necessary to complete their payment, it breaks the law.
How Does the California Song Beverly Credit Card Act Work With Online Purchases?
Recently, several law firms have filed lawsuits against big retailers, claiming these companies are breaking the law by using web-tracking technologies and violating their cybersecurity rights.
According to the online credit card transaction privacy litigation, when you shop online, stores might ask for personal details like your name, address, email, ZIP code, and IP address. They then use this information for targeted marketing without your permission.
The Act was designed long before online shopping became common, so it mainly deals with “personal identification information,” like your phone number and address, collected during in-person transactions. Therefore, it was easy to check if a store was violating the law just by looking at your receipt.
Now, online shopping is more complicated because some information, like your IP address, might be collected even if it’s not necessary to complete the purchase.
Some courts have debated whether IP addresses should be treated as personal information. In one case, the court said an IP address is not personal information, but in another case, a different court decided it is.
It might seem like having your personal information collected online doesn’t matter much, but that couldn’t be further from the truth. Your information can be used in ways that you may not expect. This information can be used for targeted marketing, sold to third parties, or even lead to unwanted tracking.
Your privacy is worth protecting. Take control of your personal information today by contacting The Lyon Firm online or calling (513) 381-2333.
Can I File an Online Credit Card Transaction Privacy Lawsuit
In May 2024, eight class actions were filed in at least seven counties in California, alleging that to check out with a credit card, the plaintiff was required to provide personal identification information that wasn’t necessary to complete the transaction.
These lawsuits argue that websites violate the act by using pixel tracking technology. Pixel trackers are tiny tools used on websites to collect information about your online activities. Businesses use them to understand how you interact with their sites.
However, in addition to websites requesting your personal information for a purchase, these pixel trackers might be collecting extra information without your permission.
If you’ve recently made an online purchase and provided personal information like your email address or IP address, you might be eligible to file a privacy lawsuit under the Song-Beverly Credit Card Act.
“In our digital world, even small pieces of data can be more valuable to companies than you might think. The concerns over your data go beyond targeted ads and marketing; if this data falls into the wrong hands, it can put your privacy and security at risk.”
Joe Lyon,
Founding Partner of the Lyon Firm
How Much Can I Recover in an Online Credit Card Transaction Privacy Lawsuit?
We are still in the early stages of these types of lawsuits surrounding online credit card transactions, but the plaintiffs in the latest class actions filed hope to get anywhere between $250 and $1,000 per credit card transaction statewide in California.
However, amounts will vary from case to case and be influenced by several factors, such as,
- How your information was collected
- How your data was used
- The number of transactions involved
- The court’s interpretation of how the Song Beverly Credit Card Act applies to your case
What Can a Lawyer Do to Help Me?
A lawyer can help you by carefully reviewing your situation to see if your privacy rights were violated. We can gather evidence, show exactly how you were affected by using our knowledge of data privacy law, and get you the compensation you deserve.
A 2016 study by Martindale-Nolo found that people with personal injury claims who worked with lawyers on legal matters fared better than those who took on their cases alone, as shown by the study’s findings:
- Over 90% of people with legal representation received a settlement or award, compared to about 50% who handled their own claims.
- People who hired a lawyer in personal injury claims received an average of $77,600 in compensation, while those without a lawyer received about $17,600.
- Those who negotiated received settlements that were $30,700 higher on average than those who accepted the first offer from the insurance company.
Settlements and Verdicts The Lyon Firm Has Won in Data Privacy Cases
The Lyon Firm has been instrumental in several large class action data privacy claims affecting people across all fifty states. Below are just a few examples highlighting our proven track record:
- Sherwood v. Horizon Actuarial: Worked on a data breach case involving over 4 million people, resulting in a settlement of $8,733,446.36.
- Migliaccio v. Parker Hannifin Corp.: Worked on a data breach case affecting 115,843 current and former employees, with a settlement of $1,750,000.
- Tucker v. Marietta Area Health Care, Inc.: Appointed co-lead in a consolidated data breach class action involving a ransomware attack on an Ohio hospital, compromising the personal and health information of 216,478 patients. The case was settled with a $1,750,000 fund.
Other Credit Card Privacy Violations
In December 2003, Congress passed a law called the Fair and Accurate Credit Transactions Act (FACTA). This law was gradually introduced to make sure businesses follow new rules about how they handle credit and debit card receipts.
According to FACTA, all businesses that print receipts for card transactions must follow these rules:
- Only the last 5 digits of the card number can be printed.
- The card’s expiration date must not be shown.
The goal of FACTA is to help prevent financial fraud and identity theft by making sure only limited information appears on transaction receipts.
Under FACTA, merchants cannot print entire card numbers on an electronic receipt. Instead, they must truncate card numbers to protect consumer information. A failure to adhere to the law may result in that merchant being charged with a FACTA violation and lead to a class action.
The law, however, applies only to electronically printed receipts from cash registers, self-service kiosks, and restaurants. But not handwritten or emailed ones.
Also, the law only applies to receipts given at the point of sale. Receipts emailed or included inside a package shipped to a home address are not bound by the same FACTA requirements.
Why Hire the Lyon Firm?
The Lyon Firm will get down to the truth about how your rights were violated and help you find the answers to take legal action. With nearly two decades of experience and millions of dollars won for our clients in consumer protection cases, we are confident in handling even the most complex data privacy cases.
Class action lawsuits can be complex and require lawyers familiar with these cases to guide you through the legal process. Through our resources and dedication, The Lyon Firm aims to build the strongest cases possible for clients and their critical interests.
We have successfully fought against some of the largest companies in the world, and we bring this same passion to every case we take on.
If you think your information was wrongly collected under the California Song Beverly Credit Card Act contact The Lyon firm today online or call (513) 381-2333.
Consumer Protection Litigation
Why Are These Cases Important?
Without privacy class actions, large corporations would be able to cause small amounts of harm to a large group of individuals without any risk of monetary penalty. Consumers have a right to privacy, and expect merchants to protect their credit card information.
Your Right to Justice
Check Out Attorney Joe Lyon Discuss Filing Class Actions
Filing a class action lawsuit is a complicated and important legal process. However, if not done correctly, it can lead to financial penalties. The Lyon Firm is dedicated to helping people who have been harmed seek financial compensation for any damages they’ve suffered.
We work with law firms across the country to provide the best resources and build strong cases to achieve valuable settlements. The current legal environment is favorable for consumers involved in data misuse, data breach class actions, deceptive marketing lawsuits, TCPA telemarketing claims, and financial negligence claims.
