§8.06 Song-Beverly Credit Card Act—Prohibitions

A credit card issuer may not do any of the following:

• Discriminate in issuing credit cards. [CC §1747.80.]
• Knowingly issue false credit information [CC §1747.70(a)] or issue unfavorable credit information because the holder claimed a billing error [CC §1747.70(b)].
• Cancel or refuse to issue a credit card because the holder obtained relief for billing errors. [CC §1747.70(c).]
• Cancel a card without first giving the holder 30 days’ written notice, with specified exceptions. [CC §1747.85.]
• Process or obtain payment of a credit card charge through a retailer’s account with a financial institution if that retailer did not furnish or agree to furnish the goods and services that are the subject of the charge. [CC §1748.7.]

Retailers and others who accept credit cards for business transactions may not request personal identification information, such as the cardholder’s address and phone number, and then record that personal information on the credit card transaction form. [CC §1747.08.] Nor may retailers request and record personal e-mail addresses as part of a credit card transaction. [Powers v Pottery Barn, Inc. (2009) 177 CA4th 1039, 1045 (federal CAN-SPAM Act does not preempt application of Song-Beverly to retailer’s collection of e-mail from its credit card customers).] A retailer also may not request a credit card user’s zip code because a zip code constitutes personal identification information within the meaning of the statute. [Pineda v William-Sonoma Stores, Inc. (2011, S178241) — C4th — (disapproving Party City Corp. v Superior Court (2008) 169 CA4th 497, 517–518, to the extent it is inconsistent).] A merchant, however, may ask for personal identification information when processing a refund for the return of merchandise purchased by credit card. [Absher v AutoZone, Inc. (2008) 164 CA4th 332, 340–346.]

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Retailers may not impose a surcharge on a consumer who elects to use a credit card instead of paying by cash, check, or similar means. Retailers may, however, offer discounts for the purpose of inducing payment by cash if the discount is offered to all prospective buyers. [CC §1748.1(a).]
 
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