IKEA Illegally Collects Customers’ Zip Codes During Credit Card Transactions, Class Action Says

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A proposed class action out of California takes issue with IKEA’s alleged practice of asking for and recording the zip codes of customers who pay for items with a credit card. The lawsuit argues that the practice of needlessly collecting customers’ personal information in combination with their credit card numbers presents a risk of identity theft and violates California law:

“California Civil Code section 1747.08 generally states that when a merchant is engaged in a retail transaction with a customer, the merchant may not request personal identification information from a customer paying for goods with a credit card, and then record that personal identification information upon the credit card transaction form or otherwise.”

According to the lawsuit, the defendants – Ikea US Retail LLC and Ikea North America Services, LLC – collect zip codes purely for marketing purposes, with the exception of transactions related to shipping, delivery, servicing, or installation of products in a customer’s home, and fail to properly safeguard the information. The case claims customers’ private zip codes and credit card numbers are accessible to IKEA employees and lack adequate security.

Per the plaintiff, the case says an IKEA cashier requested the woman’s zip code when she was purchasing an item at one of the defendants’ retail stores in California. She claims she would not have provided this private information had she known it was not necessary to complete her credit card transaction.