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Ikea Song-Beverly Act Privacy Violations Class Action To Proceed

San Diego, CA: A proposed class action against Ikea can proceed, US District Judge William Hayes has ruled. The lawsuit alleges Ikea requests customers' zip codes when making credit card purchases and keeps that information, which is allegedly in violation of the Song-Beverly Credit Card Act. Rita Medellin sued Ikea in February 2011 for violation of the Song-Beverly Credit Card Act after an Ikea.

Rita Medellin brought the class action lawsuit against Ikea in February 2011 after a cashier took her credit card and asked for her zip code. She gave it, believing the information was necessary for completing the transaction. According to Ikea, customers frequently volunteer this information so they can be kept advised of promotions by email.

However, in certifying the class, Hayes wrote, "The Song-Beverly Credit Card Act does not provide an exception allowing a retailer to request or require the cardholder to provide personal identification information as a condition of accepting a credit card payment when the individual has previously or subsequently provided any personal information to the retailer. Such an exception would contravene one of the purposes of the Song-Beverly Credit Card Act which is to prevent store clerks from obtaining customers' personal identification information."

Hayes said the possibility of the class including customers who voluntarily gave their personal information to Ikea should not prevent the action from moving forward. Hayes also wrote "Plaintiff has shown that common questions of law and fact predominate over other issues in this case on the grounds that Ikea's uniform policy and practice of requesting personal identification information from customers during credit card transactions can be evaluated to determine if the Song-Beverly Credit Card Act was violated."

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Last updated on Jul-10-12

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