With A Focus On Fraud, California Federal Court Finds Song-Beverly Act Does Not Apply to Online Transactions


The California Supreme Court’s February 2011 decision in Pineda v. Williams-Sonoma Stores, Inc. spawned hundreds of lawsuits against brick-and-mortar retailers complaining that retailers collected customers’ “personal identification information” (PII) in violation of the Song-Beverly Credit Card Act (the “Act”). Pineda also triggered a wave of lawsuits against online businesses, raising the question of whether the Act applies to online transactions. In a case brought against Microsoft Corporation, a California federal court has recently answered that question in the negative — reasoning that Pineda supports the conclusion that online transactions are outside the scope of the Act.

On January 6, 2012, the United States District Court for the Central District of California dismissed a case against Microsoft Corporation on the grounds that the Act does not apply to online transactions. On the same day, the Court dismissed a similar case against Redbox Automated Retail, LLC holding that the Act does not apply to transactions involving self-service DVD kiosks. The Court’s analysis in both cases was similar, focusing on the statutory language and purpose of the Act.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.