Court Determines Parameters in Song-Beverly Interpretation

Retailers Tune to Calif. High Court for Song-Beverly Defense
– Law360

Law360 interviewed Manatt's Donna Wilson, co-chair of the firm's Privacy and Data Security practice, for an article on the California Supreme Court's anticipated interpretation of the state's Song-Beverly Credit Card Act.

Law360 reports that the Ninth Circuit recently charged California's highest court with setting the parameters for a transaction during which companies are prohibited under the Song-Beverly Act from collecting personal information. If the court chooses to establish a point at which liability under the statute ceases to apply, retailers are likely to have a better chance of escaping the growing number of class actions. On the other hand, plaintiffs might be able to gain more traction with their individual claims if the high court takes the opposite approach and decides that the statute is meant to remain in effect until the consumer subjectively believes the transaction has ended.

"Ironically, the plaintiffs here could win the battle and lose the war," Wilson said. "With an objective standard, that arguably makes it easier to get your class certified, but with a subjective standard, that may create more arguments against class certification because individualized inquires would have to be made."

Read the article here

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