Massachusetts Court Rules Zip Codes Personal Information- Retailers Who Collect May Violate Law

In a recent ruling, the Massachusetts Supreme Court ruled that ZIP codes constitute “personal identification information.” The court found that retailers who request and record consumer’s ZIP codes during electronic credit card transactions may violate the state's consumer privacy law and may be subject to suit under the Massachusetts Unfair Trade Practices Act. The court also found, under statutes of the same law, that a case can be brought even if there is no evidence of identity fraud, as the statute is intended to “address invasion of consumer privacy by merchants.” In 2011, a customer, Melissa Tyler, filed a lawsuit in the federal District Court of Massachusetts, against Michaels Stores, Inc., on behalf of herself and a putative class of Michael’s customers. Tyler alleged that Michaels’ electronic recording of customer ZIP codes violated a Massachusetts statute restricting the collection of personal identification information (PII) during credit card transactions. She also alleged that the retailer collected her ZIP code in connection with a credit card purchase and then used her name and ZIP code in conjunction with other commercially available databases to find her address and telephone number in order to send her unsolicited marketing materials.