FASHION LAW: FOREVER 21 INVOLVED IN POINT OF SALE DATA COLLECTION CLASS LAWSUIT
Mega fast fashion retailer Forever 21 Retail Inc. is caught up in a vicious lawsuit against the Californian state law. Filed last week, the case in dispute is Forever 21’s violation of recording and requesting shopper’s credit card and personal information at the point of sale. Throwing disarray into the Song-Beverly Act, also known as Lawful credit card act of 1971, protects customers from having their personal identification information stored and subject to unauthorized use by retailers. By violating the Song-Beverly Act, a person can face a civil penalty of up to $250 for the first violation and up to $1000 of additional violation fees.
It was a Forever 21 customer by the name of Tamar Estanboulian who filed the lawsuit on September 7th in the U.S. District Court for the Central District of California. The complaint furthermore alleges that the retailer combines a shopper’s personal information with the shopper’s name from the credit card to make the purchase obtain further personal information violating even more privacy issues from their customers. Forever 21 is not the only retailer that has received a point-of-sale class lawsuit, J.Crew is just as guilty in June 2013; a putative class action was filed in the U.S. District Court for the District of Massachusetts against the American brand. J.Crew Group Inc. was accused of collecting zip codes from customers upon credit card purchases, then using the acquired information to send unsolicited marketing and promotional content. J.Crew ended up with $135,000 in fees with attorneys, and up to $3,000 payouts to each of the class representatives.
The plaintiffs are represented by Abbas Kazerounian and Matthew M. Loker of Kazerouni Law Group, Sina Rezvanpour of RKR Legal and Joshua B. Swigart of Hyde & Swigart.
The suit is Estanboulian v. Forever 21 Retail, Inc., case number 2:14-cv-06971, in the U.S. District Court for the Central District of California.
Text reference via National Law Reviewby