Tuesday, July 1, 2014

J.Crew and the Zip Code Lawsuit

J.Crew recently had a lawsuit brought against them. The following is from the Washington Examiner (click here to read in its entirety) which talks more about it:
J.Crew settles ZIP code class action, providing vouchers
Legal Newsline Staff Writer
June 30, 2014

A settlement has been preliminarily approved in a lawsuit against J.Crew for allegedly unlawfully collecting customers’ ZIP codes during credit card purchases and using the information to send unsolicited marketing materials.

The settlement was preliminarily approved on June 27 and will provide $20 vouchers to class members who submit a valid and timely claim.

Class representatives Lauren Miller and Leah Crohn will each receive an incentive award of $3,000 in recognition of the amount of time and effort they spent as the class representatives, according to the settlement. Class counsel will also receive attorneys’ fees in the amount of $135,000.

On June 20, 2013, Miller filed the class action complaint against J.Crew alleging the company violated Massachusetts general laws through its collection of ZIP codes from its customers when they made purchases using credit cards at J.Crew’s retail stores in Massachusetts.

J.Crew employees did not ask customers for their ZIP codes because credit card companies required them to do so, nor for verification purposes, but to identify that customer’s address using commercially available databases, according to the settlement documents. The plaintiffs claimed J.Crew used their addresses for intrusive marketing purposes.

The plaintiff brought the action for redress of the unlawful practice of J.Crew of collecting ZIP codes at checkout at its Massachusetts stores from customers who make purchases with credit cards, recording that information as part of the credit card transaction and then using that information for its own marketing and promotional purposes, including to send unsolicited marketing and promotional materials, or “junk mail.” ...
I have been asked many times at J.Crew for my zip code (as well as my email address). I always assumed it was to (a) get a better idea of where (in terms of location) customers were coming from and (b) understand which customers are the big shoppers at stores.

I actually don't mind that J.Crew used that information for marketing purposes. (As long as they are not selling that information to a third party). Especially since I would like to get the good stuff, like all those gifts they send out. (Which I never do!) ;)

However, I can totally understand how other customers would be upset. Especially those who shop infrequently at the store. It just seems foolish for J.Crew to not use some disclaimer upfront stating the purpose of the zip code request.

Lastly, I am curious what kind of "intrusive marketing purposes" the article is referring to. (I know many JCAs who actually sign up to receive J.Crew's catalogs / emails and don't get any.)

What are your thoughts on this lawsuit? Does your local J.Crew store ask for zip codes?

18 comments:

  1. What time period was this? My store didn't get the memo. lol

    ReplyDelete
  2. Speaking of style guides, about 10 days ago I received the July one. It was the first after a long, dry spell.

    I used to be asked my postal code at Winners and at IKEA all the time, and promptly refused to give it out each time.

    ReplyDelete
  3. Bath and Body Works also asks for your zip code, I just give a fake one since I get way too much junk mail as it is.

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  4. storm in a teacup?
    when asked for my phone # I tell them unlisted
    876-5309

    I am actually more observant of this practice as the data brokers will gather all this info on you, so I try to minimize as much as I can, probably impossible but I try

    ReplyDelete
    Replies
    1. 867-5309 rofl
      I'm old enough to remember.

      +++LIKE

      Delete
  5. I live in Boston and during the rare occasion in which I buy anything from a store, I have been asked for my zip code.

    $20 voucher...what a joke. Nothing n J.Crew costs $20 - it will force you to come into the store and redeem it - and spend more money. Lesson with lawsuits - no one wins except the lawyer.

    ReplyDelete
  6. interesting that this is hitting j. crew, because I find victoria's secret to be far more intrusive. whenever I shop in store they ask for my home phone, cell phone, zip code, and email address - and still ask for it, even when I tell them I get the catalogs in the mail. and I get a catalog at least every other week! that's certainly more pushy than anything I've ever experienced at j. crew.

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  7. I'm wondering if JCrew gave my information to Victoria's Secret. Since I started buying JCrew online I started receiving Victoria's Secret catalog with my name on it. I'm very careful with my personal information, I never give my real name or information to stores if they ask, and I'm relatively new to the U.S.A -I'm an international student without any history of purchases in this country. What I bought in JCrew are the only 'female clothing items' that I ever bought online. Receiving the unwanted Victoria's Secret catalog with my name on it was kind of creepy. Did anyone have a similar experience?

    ReplyDelete
    Replies
    1. Not Victoria's Secret, but I think something similar happened to me. I never used to receive men's clothing catalogs (unless it was a combined women's/men's catalog, of course) - I live alone and haven't purchased any menswear as gifts. But this past winter I wanted a plain gray scarf, and ordered the J.Crew men's version since I thought I might like it better than the women's version. Since then I've started getting a bunch of catalogs from companies that only sell men's clothes! Very annoying.

      I've been using Catalog Choice / Trusted ID to cut down on all these unwanted catalogs - it seems to be helping.

      Delete
    2. Yeah, I get VS catalogs even though I've never shopped there. (Nothing personal, just never had the need to.)

      Delete
    3. Me too. I started getting vs catalog and I do not shop at vs.

      Delete
    4. Hmm. Maybe JCrew does give our information away. I can't find another explanation, unless it's USPS or UPS collecting data on deliveries. I really don't like feeling tracked like this...

      Delete
  8. I've never been asked for my zip code at J. Crew. But, I'm often asked for it at other stores. I don't mind giving my zip code, but I never give my email address unless I'm at a store in which I have already signed up to get their emails. I just politely say no to the requests in which I don't want their mail. I can't understand why people don't just decline when asked these questions....instead of making such a fuss. Making a purchase is not predicated on whether or not you are willing to give a zip code, phone number or email address.

    ReplyDelete
  9. Every J Crew I've ever visited has asked for both my zip code and email address. The Loft store that I visit close to where I work is very aggressive in asking for your email address. Even after I mention that I receive an email every single day from Loft, they still insist they need it again. Seriously? I've started saying no thank you when they ask now. Just ring the stuff up and let me go on my way!

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  10. I work for a large retailer and they require that we ask all customers for their ZIP code and email. Our email captures are tracked and if it is not enough, I have to talk with my manager about how I can improve it. I hate asking people and most of the time I just make up a ZIP code. Please know that the associates are forced to ask and that we hate asking just as much as you hate being asked.

    ReplyDelete
    Replies
    1. I realize that and feel for the associates who are forced to ask for information most customers would rather keep private. My MIL works part-time for a large retailer, and the SA's there have to open a certain number of store credit cards each month or they can say goodbye to their job.

      I usually refuse to give out my contact information unless I'm already on their mailing list. (For the longest time, I thought ZIP code was required for credit card payments so I gave that out. Not anymore!) I wonder if there is a way to let companies such as JC know that I don't wish to give them information I consider private without getting the SA's in trouble for not meeting their quota. ginastorm, is there such an option or does that count against you anyway?

      Delete
  11. Ivanka, thanks for thinking of us! As far as I'm aware, there isn't a way to keep it private without going against our numbers. My company markets the email as a 'customer service' since we're emailing their receipts, so if they lose the receipt, we can easily find it. While that is a nice feature, I am required to have a certain % of my sales with an email capture [usually about 80 - 90%, which is laughable].

    In the past we used to make up emails for people who didn't want to provide an email address, but now that their receipt is connected, we can't do that anymore.

    We also have to open a certain # of credit cards. Although this is a new development [before we were just strongly encouraged to open credit cards], I am extremely disappointed at the direction my company is moving towards. The success metrics are based on # of credit cards and your sales per hour and created by upper management who haven't worked on the floor in years. It doesn't take into account when I'm working while the store is closed [goes against my SPH and ability to capture credit cards], working on a floor set, helping a guest for a long period of time only to have the guest tell me they're going to Target to re-create what we just worked on, etc.

    OK, I'll get off my soapbox now. Thanks for all who read my epic novel of a post.

    ReplyDelete
    Replies
    1. I HATED the credit card thing when I worked retail! It always felt kind of unethical to me, because it's such a permanent thing that goes on someone's credit history.

      I was lucky enough to get out before they set quotas, but I can totally empathize, ginastorm. :(

      Delete

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