Drama in New Jersey: Retailers Breathe a Temporary(?) Sigh of Relief

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With less than 24 hours remaining before retailers would have been required to obtain and maintain zip codes for all gift cards purchased within New Jersey, the U.S. Court of Appeals for the Third Circuit granted a temporary injunction. Am. Express Travel Related Services Co., Inc. v. Sidamon-Eristoff, et al., Civil Case No. D.N.J. 10-cv-05059 --- F.Supp.2d ----, 2010 U.S. Dist. LEXIS 120153 (D.N.J. Nov. 13, 2010), on appeal, as Am. Express Prepaid Card v. Andrew Sidamon-Eristoff, et al., No. 11-1141, Temporary Stay granted (3rd Cir. Jan. 31, 2011).

The news gets even better for retailers. The order simply states that injunctive relief is granted until a full panel of the Third Circuit has the opportunity to review the Appellants’ motion. The order provides no date by which the court will consider the matter. So, until further notice, retailers with stores in New Jersey or sales to New Jersey residents will NOT be required to collect zip codes for gift card purchasers.

Please see full alert below for more information.

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