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Court: Song-Beverly Does Not Apply Online

PRIVACY LAW—U.S.

January 10, 2012

Morrison & Foerster reports on a U.S. District Court's dismissal of two cases that raised the question of whether the Song-Beverly Credit Card Act applies to online transactions, referencing last year's decision by the California Supreme Court in Pineda v. Williams-Sonoma, which found that ZIP codes are "personal identification information" for the purposes of the Song-Beverly Credit Card Act. The court dismissed cases related to collecting personal information for online transactions and self-service video rental kiosks. The court found that the law's language "contemplates 'pen and paper' transactions, rather than 'electronic entry of numbers on a keypad or touchscreen' and thus does not apply to online transactions," the report states.
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