Massachusetts Zip Code Class Action: Take 3

Another class action suit has been filed in Massachusetts in the zip code wars. This time, the target is instrument retailer Guitar Center for allegedly requesting customers to provide their zip codes when making purchases with a credit card in contravention of Mass. Gen Laws ch. 93§ 105(a). Zip code class action suits started in California against retail giant Williams-Sonoma, and last year they found their way to Massachusetts in a case filed against national craft retailer, Michaels Stores. We discussed that case in some detail, here.

The Massachusetts Michaels case was dismissed from the U.S. District Court for the District of Massachusetts in January of 2013, but questions of law were sent from the federal court to the Massachusetts Supreme Judicial Court. The big questions referred to the SJC for determination under Massachusetts law, were (1) whether a zip code is personal identification information ("PII") under § 105 (a) and (2) whether a complainant could state a cognizable claim under that section without suffering identity theft. The court ruled that zip codes are personal information under the law and identity theft is not a necessary element in arguing a valid claim.

The SJC ruling kicked opened the door for lawsuits in Massachusetts against major retailers that collect zip codes when processing credit cards. Currently there are two class actions pending...