Under the Song-Beverly Act, retailers are prohibited from collecting personal identification information in connection with a credit card purchase. Following a California Supreme Court decision, ZIP codes fall within the definition of "personal identification information." There is, however, an exception to the Song-Beverly Act that allows for the collection of such information where the "credit card is being used as a deposit to secure payment in the event of default, loss, damage, or other similar occurrence." Redbox was able to rely on this exception.
* This article was originally published in Behind the Scenes. To read the full article, click here.
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