Gas Stations Can Ask for Credit Card Users’ Zip Codes in California

The California State Assembly approved a measure allowing gas stations to continue to
require the zip codes of credit card users for gas purchases following the bill’s passing
by the Banking and Finance Committee in a unanimous, bipartisan vote.

The legislation, Assembly Bill 1219, California Business Protection Act of 2011, was
submitted by Chair of the Revenue and Taxation Committee, Assemblymember Henry
Perea (D Fresno), who said, “Millions swipe their credit cards when paying for gas at the
pump, and they don’t think twice about inputting their zip code.”

The congressman added that the requesting of zip codes was a protection against
fraud, a practice for which businesses should not be sued.

The need for the bill began with the Pineda v. Williams-Sonoma Stores case earlier
this year, during which the California Supreme Court decided that privacy rights could
be violated when merchants recorded their customers’ zip codes since, the court
concluded, a zip code is part of an address and, therefore, personal identification
information which is covered by consumer credit card protection regulations that
became law in 1971.

That case centered on an incident in which a retailer used a customer’s name and zip
code in order to find an address to use for marketing and to sell to other businesses.
The decision on the case led to around 150 class-action suits against retailers across
the state. Perea said many of these merchants were requesting zip codes to protect
their consumers from credit card fraud and not to sell or use for marketing.

"These lawsuits could really hurt California businesses at a time when they can least
afford it," said Perea.

Now that the AB1219 has passed the Assembly, its next stop is the State Senate.

Follow @CreditDonkey or write to Andrew Green at andrew@creditdonkey.com

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