Jessica Pineda

The Supreme Court of California recently ruled that collecting ZIP codes from customers who paid by credit card may subject merchants to class-action lawsuits. Dozens of such actions have already been filed, including against retailers "yet to be named." Reported settlements paid by some companies have exceeded $25 million. The lesson is clear: All retailers should review their customer information collection practices in light of California law (and other states) to avoid becoming the target of class-action lawyers.