Silo to Pay Penalty in Credit Card Settlement

In one of the few cases of its kind, Dist. Atty. Michael R. Capizzi announced a $100,000 fine and settlement Tuesday in a lawsuit brought against Silo Inc. under a state consumer protection statute that covers credit card use.

The lawsuit, filed in December, alleges that Silo Inc. and Silo California Inc., which sell consumer electronics, violated a state statute by asking customers to “provide their name, address and telephone number in writing as a condition (of) accepting a credit card as payment for goods or services,” according to a statement from Capizzi’s office.

Silo, without admitting liability, will pay a civil penalty of $100,000 and agreed to follow the terms of a statewide injunction prohibiting the company from requesting or requiring personal identification information in writing from its California credit card customers, the district attorney’s statement.

The state statute, effective since 1990, prohibits merchants from requiring customers to write their home addresses or telephone numbers on the front of credit card slips.