Urban Outfitters, Anthropologie Dodge ZIP Code Class Action Lawsuit

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A West Virginia federal judge recently dismissed a class action lawsuit that was brought against the clothing retailers Urban Outfitters and Anthropologie for collecting customers’ ZIP codes from debit or credit card transactions.

U.S. District Judge Beryl Howell said that the collection of ZIP codes was not enough to trigger the consumer protection laws by themselves because the consumers consented to giving them before the transaction was made. This policy bars companies from searching and using the consumers’ addresses or telephone numbers as a condition of credit card payments.  Howell dismissed the class action lawsuit (Whitney Hancock vs. Urban Outfitters) with prejudice, meaning the plaintiffs cannot make a second refile an amended lawsuit in federal court.

The plaintiffs tried to argue that this practice violated Washington, D.C. law, in terms of the Use of Consumer Identification Information Act (CII Act).  The ZIP code class action lawsuit also alleges that Antrhopologie and Urban Outfitters conducted unlawful misrepresentation under the D.C. Consumer Protection Act (DCCPA).  The difference in the law pertains to how many members are eligible to join the class action lawsuit.

Under the CII Act, companies are prohibited from accepting personal information as a form of payment, and are required to record the address or telephone number on the credit cards. Under the DCCPA, companies are prohibited form asking any for personally identifiable information from the consumer during a transaction.  The court dismissed allegations regarding both violations, because they ruled that the ZIP code was a natural component of the address, but did not list any specific housing or living location information.

Additionally, the court ruled that the ZIP code was not sufficient enough information to be identifiable to consumers, and because ZIP codes are a component of an address, the CII Act was not violated.  Because the plaintiffs said the retailers requested their ZIP codes after swiping their cards, the court concluded that the transactions were completed prior to collecting the ZIP codes, and therefore, the retailers did not violate state law.

While this ZIP code class action lawsuit ended up losing in the end, other ZIP code violations are being reported in other states.  Currently, the only states which have written policies prohibiting the collection of ZIP codes are Massachusetts and California.  These states strictly forbid retailers of any kind to request ZIP codes from consumers during and after credit or debit card transactions because ZIP codes are considered personable identifiable information.  The ZIP code class action lawsuit in Washington, D.C. is a sign that other states may adopt similar policies, and that consumers could possibly see litigation action in other states.

Zip Code Collection Class Action Lawsuits

More than 30 class action lawsuits have been filed in Massachusetts, and more than 100 have been filed in California against companies who asked consumers to provide their ZIP codes during credit or debit card transactions, claiming violations of state law.

If you were asked to provide your ZIP code during a credit card transaction at a California or Massachusetts store, you may be eligible for compensation. See if you qualify now by checking out our Merchant ZIP Code Collection Class Action Lawsuit Investigation.