Another Flurry of Class Actions Being Filed Against Retailers Accepting Credit Cards in California
November 19, 2008
Companies that accept credit card payments in California, whether in person, over the Internet, or by phone, may be at risk of joining dozens of retailers that have recently been hit with class action lawsuits under the California Song-Beverly Credit Card Act, California Civil Code §1747.08. This statute, which provides for up to $1,000 in civil penalties per violation, is being construed by California plaintiffs' attorneys to broadly prohibit any request for personal identification information from customers paying by credit card in California. This advisory, authored by Kelley Drye's Consumer Financial Services group, provides an overview of the Act's provisions, the important legal issues surrounding the Act, including several issues that recently have been resolved by California courts, as well as guidance for mitigating your company's risks.