The California Supreme Court ruled that online retailers of electronically downloaded goods may seek personal information from customers who use credit cards, bypassing privacy restrictions placed on physical stores in the Song-Beverly Credit Card Act of 1971.

Los Angeles-based partner Christine Scheuneman and Sacramento-based counsel Amy Pierce, both members of Pillsbury’s litigation practice, discussed the implications of the court’s decision.

Speaking about the application of the Song-Beverly Act, Scheuneman said, “We’re dealing with a law that had been amended in 1990 before there was a public Internet. There could not have been contemplation of this type of situation in the legislative history because it didn’t exist at the time.”

Pierce added, “This area of law is developing rapidly. There’s a question of whether the legislature will get involved in the short term.”

Scheuneman commented that for now, “it’s an open question at this point at time as to whether information can be collected and what sort of information can be collected.”