Sunday, July 28, 2013

When a Retailer Asks, ‘Can I Have Your ZIP Code?’ Just Say No

Urban Outfitters was hit with a lawsuit charging that the trendy clothing retailer tricked customers into providing their ZIP codes by leading them to believe the information was necessary to process credit-card transactions, when the company really just wanted the information so it could mail them ads. 

The lawsuit, filed in Washington, D.C., says customers started getting marketing materials from the company even though they'd never asked to be placed on a mailing list or given their full addresses. "Once the customer provides his/her ZIP code, the retailers have all the information they need to secretly obtain customers' home/business address," the suit says.

The suit sheds light on common but little understood data-collection practices by merchants. Most of us have, at some point, been asked for our address, ZIP code, phone number or e-mail address while buying something and wondered what the deal was. Here's what you need to know.

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