Partner Alysa Hutnik
co-authored the E-Finance & Payments Law & Policy
article, "California Credit Card Privacy Litigation Continues Apace." The article discusses the scope of California's Song-Beverly Credit Card Act, which has been the subject of considerable litigation. The Act is a consumer protection statute designed to provide state credit protections similar to the federal Truth in Lending Act, which prohibits entities from requesting and recording personal identification information from consumers as part of a credit transaction.
Determination as to whether the Act applies to online transactions is a key open issue. In a notable class action lawsuit, Apple Inc. is contesting that the Act is not applicable to online retail transactions selling a downloadable service and is only applicable to brick and mortar stores. Numerous California courts have considered this issue and held that online transactions and self-service transactions conducted at a kiosk are excluded from the Act. This issue will be addressed by the California Supreme Court.