California Court Rules That Online Transactions Are Not Subject To State Law That Limits The Collection Of Personal Information


California Civil Code Section 1747.08 prohibits merchants from requesting and recording consumers' personal identification information (PII) in the course of completing credit card transactions. Earlier this year, California's Supreme Court held that zip codes are PII under Section 1747.08 and therefore cannot be collected during credit card transactions. (We summarized this ruling in our February 2011 Alert.)

In a one-page decision, a California state court held that Section 1747.08 does not apply to online transactions, and dismissed the class action complaint filed against Craigslist.

This decision provides much-needed clarity in this area as many online businesses collect personal information, such as name and address, when accepting payment by credit card.

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