Sarah Mirando  |  March 1, 2013

Category: Legal News

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IkeaA class action lawsuit accusing IKEA of illegally collecting ZIP codes from California customers survived a motion by the company to decertify the Class, but will continue with a narrowed Class definition.

U.S. District Judge William Hayes certified the IKEA ZIP code class action lawsuit in May 2012, which alleges the retailer violated the Song-Beverly Credit Card Act by requesting customer ZIP codes during credit and debit card transactions.

Judge Hayes on Wednesday granted in part and denied in part IKEA’s request to decertify the class action, finding that that IKEA sufficiently proved that customers who used self-checkout kiosks should be excluded from the Class. Judge Hayes agreed with IKEA that no reasonable customer would perceive the store’s request for a ZIP code to be a condition for completing a credit card transaction because the self-checkout kiosks allow customers to push a “No Thanks” button or to “Key 00000” when asked for their ZIP code.

“Nothing in the Song-Beverly Credit Card Act prohibits corporations from obtaining personal information from consumers who provide their information voluntarily,” the order said.

However, Judge Hayes struck down several of IKEA’s other arguments, including that plaintiff Rita Medellin was an inadequate Class representative and that there were too many individual issues for the Class to proceed as a group.

Hayes said he would modify the Class by removing customers who made self-checkout purchases and changing the Class period to have an end date of February 28, 2011 – the day IKEA says it stopped its uniform policy of requesting customers’ ZIP codes.

Judge Hayes concluded by saying he would grant the plaintiffs’ request to have IKEA post notices of the certified class action lawsuit.

The IKEA ZIP Code Class Action Lawsuit case Reid Yeoman, et al. v. IKEA U.S. West, Inc., Case No. 11-cv-701 WQH (BGS), U.S. District Court, Southern District of California.

Have you been asked to provide your ZIP code during a debit or credit card transaction at a California or Massachusetts store? You may be eligible to participate in a class action lawsuit and pursue compensation. See if you qualify for free at the Merchant ZIP Code Class Action Lawsuit Investigation.

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2 thoughts onIKEA ZIP Code Class Action Lawsuit Gets Trimmed

  1. Angelica Romero says:

    Add me

  2. Eli says:

    Forever 21 also requests zip code for credit card transactions too. This happened to me in the Calexico, CA store.

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