Michael’s Stores Credit Card Privacy / Unsolicited Marketing Case Settles

Massachusetts federal judge William G. Young granted preliminary approval on Wednesday February, 12, 2013 to an $875,000 settlement resolving a class action that accused arts-and-crafts retailer Michael’s Stores Inc. of improperly demanding ZIP Codes from its customers during transactions and then sending them junk mail.  See the settlement docs: [PDF]

In this class action, Michael’s stores was sued for allegedly violating M.G.L. c. 93A sec 9 (Massachusetts Consumer Protection Act) and M.G.L. c. 93 sec. 105(a) (Massachusetts Credit Card Privacy Act). This is the seminal case in the area of credit card privacy under Massachusetts law. Class counsel took the case all the way to the SJC. In mid 2013, they won a decision from the Commonwealth’s highest state court declaring that (1) ZIP codes constitute “Personal Identification Information” in the context of M.G.L. c. 93 sec. 105(a); and (2) receipt of unsolicited marketing materials or  junk mail occasioned by an underlying violation of sec. 105(a) is an injury under 93A.

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