A class-action lawsuit was filed against The Children's Place because the company violated the Song-Beverly Credit Card Act of 1971, which states a retailer cannot request and record personal identification information from customers who use credit cards. Attorneys claim that The Children's Place then sent the collected phone numbers to a third party data provider and cross referenced the phone numbers to acquire their customers home addresses for marketing purposes. This process, also known as database mining “opens consumers up to identification theft,” said one of the lawyers handling the case. |
There are 805 Children's Place stores in the country, but only California stores are part of the lawsuit. Approximately 1.3 million Californians were notified in the past week about the suit and lawyers estimate that potential compensation to the class could amount to about $26 million. The company has agreed to give the class a one-time 30 percent off coupon for an entire purchase and for those who fill out the paperwork, a $10 gift certificate as well.
The Sacramento lawyer representing the customers was concerned because some erroneous information was detailed in the settlement information sent out that said the coupon is good for 30 percent off your purchase up to $100. There is “absolutely no cap” to the purchase, he said and added that class members will be another mailed notification to clarify that.
Lawyers claim that "for those who used their credit card or debit card in a California store during the November 2003 to October 2005 time period and did not receive settlement notification, the database may have not found an address."
The lawsuit is open to any customer of The Children's Place who used a credit card or debit card in a California store during the November 2003 to October 2005 time period.