Marketers Fear Spread of CA ZIP Code Rules

April 1, 2011 – In The News
Direct Marketing News

In February, the California Supreme Court ruled that ZIP codes could no longer be collected during credit card transactions after a lawsuit was brought against Williams-Sonoma. The ruling has caused concern among many California retailers.

“I don’t think the [California] Supreme Court had a clue about what they were unleashing,” said David F. Faustman, who represented Party City in a 2008 case where the California Fourth District Court of Appeals ruled that ZIP codes were too general to be considered personal information. “It’s a very bad thing for California retailers.”

It is still unclear how the ruling will impact the marketing efforts of many California retailers. Faustman says he does not expect to see the ruling impact retailers outside of the state.