Media Coverage
Source: Law360
Media Coverage
02.05.13
The California Supreme Court ruled that the Song-Beverly Credit Card Act did not apply to online retailers and that Apple and other online retailers could collect consumers' personal information. By limiting the ruling to downloadable products, the court left several questions unanswered, including whether or not the act applies to online transaction that do not involve downloadable products.
Pillsbury litigation partner Christine Scheuneman and counsel Amy Pierce discussed the implications of the ruling with Law360.
Los Angeles-based Scheuneman commented that while state and federal courts are likely to grapple with these issues in what remains of the flurry of lawsuits filed under this statute, the California Supreme Court also has a chance to tackle the open issues itself in considering a pair of related actions against Ticketmaster and dating site eHarmony.
“The information being collected by eHarmony is not intended to allow a consumer to electronically download a product, but instead to enroll in its services, while Ticketmaster is sort of a hybrid because users can download content but can also receive a physical product,” Scheuneman said. “That means that the resolution of these cases has the potential to more broadly determine whether the act applies to any online retailer.”
Sacramento-based Pierce predicted that although Monday's ruling leaves open the possibility that plaintiffs can sue online retailers that do not offer electronically downloadable products, litigants would hold off on these filings until receiving further guidance.
“There's still enough uncertainty about going after online retailers that it's likely that litigants will wait to see if the legislature acts or if the California Supreme Court rules on other cases that will provide more clarity about when it's appropriate to collect personally identifiable information with online transactions,” Pierce added.