Micro Center Consumer Data Suit Is Settled
The parent of Micro Center agreed to pay up to $6.6 million to about 120,000 Southern California consumers to settle a class-action lawsuit that charged the Ohio-based electronics retailer with illegally asking for--and recording--personal information from customers who made credit-card purchases at its Tustin store.
Most of the payments, ranging from $10 to $50 per customer, will consist of discounts on merchandise, service and repair contracts and training classes at the Tustin store. In addition, Micro Electronics Inc. will donate 150 computers valued at $112,500 to the Tustin Unified School District.
The settlement, scheduled for final approval in Orange County Superior Court on Jan. 12, would end a 1996 suit brought by UCI student Kellene Perez. She claimed that from Nov. 23, 1995, to July 1, 1997, Micro Center employees recorded personal information such as addresses and phone numbers on credit-card receipts, a violation of state law.
“This isn’t about a company that had gone out and defrauded people and profited from it,” said Martin W. Anderson, a Santa Ana attorney who represented Perez. “Rather, they were violating the law and would not stop when asked.”
As part of the settlement, Micro Center agreed to stop asking customers for personal information. The company has one other California store, in Santa Clara, and 12 stores in seven other states.
Micro Center attorney Robert Hubbell said the company doesn’t believe it broke any laws and is settling the suit to avoid a costly trial.
“The irony of this case is that Micro Center is known for pampering its customers with after-purchase services, and one of the ways it was able to do this was by knowing how to reach its customers,” he said.
The company used the customer lists for internal purposes only, and did not sell them to others, Hubbell said.
The case is the latest to address a 1991 statute that seeks to prevent identity fraud and protect consumer privacy. At least three other retailers have been hit with similar suits in recent years.
If the settlement is approved as expected, Micro Center will mail discount coupons to affected customers in late January, Anderson said. The coupons expire Aug. 31, 1998.
The discounts will be good for 10% (up to $10) off the purchase of accessories or books; 20% off any service contract; or $50 off any training class valued at $100.
