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July 26, 2012 / Alison Wilson

Court Certifies Consumer Class Action Against Ikea

U.S. District Judge William Hayes recently certified as a class action a lawsuit against Ikea for alleged violations of the Song-Beverly Act.

The Song-Beverly Credit Card Act of 1971, Cal. Civ. Code § 1747.08, prohibits retailers from requesting customers’ personal information when they pay by credit card. The lawsuit claims that Ikea requested and stored customers’ zip codes during credit card purchases, in violation, of the Act. The plaintiff, Rita Medellin, claims that she gave her zip code to a cashier during a credit card transaction, believing that the cashier needed the information in order to complete the transaction.

In its court filings, Ikea argued that customers who voluntarily provided their personal information through other means, like a rewards program, should be excluded from the class action.   The Court rejected Ikea’s argument, stating that the Song-Beverly Act provides no such exception “when the individual has previously or subsequently provided any personal information to the retailer.”

According to the Court Order, the plaintiff successfully demonstrated that Ikea had “a uniform policy and practice of requesting personal identification from customers during credit card transactions.”   The Court certified the lawsuit as a class action, with the class consisting of  “all persons from whom Ikea requested and recorded a ZIP Code in conjunction with a credit card transaction in California from February 16, 2010 through the date of trial in this action.”

If you feel you have been a victim of consumer fraud, please contact Khorrami, LLP for confidential consultation.

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