Sinibaldi v. Redbox, No. 12-55234 (9th Cir. 2014)
Annotate this CasePlaintiffs appealed the dismissal of a putative class action alleging violations of California's Song-Beverly Credit Card Act of 1971, Cal. Civ. Code 1747.08. The Act prohibits retailers from collecting personal identification information in connection with credit card transactions. Plaintiffs alleged that Redbox violated the Act by imposing that customers using credit cards provide their ZIP codes to obtain discs from Redbox kiosks. The court concluded that Redbox's alleged conduct does not violate the Act where the statute exempts certain transactions, including those where "the credit card is being used as a deposit to secure payment in the event of default, loss, damage, or similar occurrence." Accordingly, the court dismissed the action.
Court Description: California’s Song-Beverly Credit Card Act. The panel affirmed the district court’s Fed. R. Civ. P. 12(b)(6) dismissal of a putative class action alleging that Redbox Automated Retail, LLC, violated California’s Song- Beverly Credit Card Act of 1971. The Song-Beverly Credit Card Act prohibits retailers from collecting personal identification information in connection with credit card transactions. Redbox operates self-service kiosks, and it requires customers who obtain movie or video game discs from the kiosks to provide their ZIP codes. The panel held that Redbox’s alleged conduct did not violate the Act. The panel concluded that Redbox’s collection of personal information in connection with the kiosk rental transaction fell outside the reach of § 1747.08(a) of the Act, because it fell within the exception of Cal. Civ. Code § 1747.08(c)(1) where the customer’s credit card was used as a deposit to secure payment in the event of loss or late return. Judge Reinhardt dissented because he did not believe that the Redbox credit card transactions fit within the exception at issue in Cal. Civ. Code § 1747.08(c)(1).
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