April 12 2006
A class action lawsuit was filed on behalf of California consumers who purchased merchandise from the store with a credit card between November 2003 and October 2005. The lawsuit claimed The Children's Place violated the Song-Beverly Credit Card Act of 1971 that states a retailer cannot request and record personal identification information from customers who use credit cards. The Children's Place allegedly collected phone numbers and sold them to a third party data provider and then cross referenced the phone numbers to acquire home addresses for marketing purposes. The company has agreed to give the class a one time 30% off coupon for an entire purchase and for those who fill out the paperwork, a $10 gift certificate as well. Approximately 1.3 million residents from California could be included in the class and the settlement could therefore cost the company up to $26 million. (Apr-11-06)
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