SUPERMARKET CLUB CARDS
California Civil Code Section 1749.60-1749.65
1749.60. This title shall be known and may be cited as the
"Supermarket Club Card Disclosure Act of 1999."
1749.61. For purposes of this title:
(a) "Cardholder" means any consumer to whom a supermarket club
card is issued, provided that in cases where more than one
supermarket club card has been issued for the same account, all
persons holding those supermarket club cards may be treated as a
(b) "Supermarket" means any retailer that sells food items.
(c) "Supermarket club card" means any card, plate, coupon book, or
other single device existing for the purpose of being used from time
to time upon presentation for price discounts on retail products
offered by the club card issuer. "Supermarket club card" does not
include any credit card that is subject to Section 1748.12.
(d) "Club card issuer" means a supermarket that provides
supermarket club cards to consumers, and includes a supermarket's
contract information services provider.
(e) "Marketing information" means the categorization of
cardholders compiled by a club card issuer, based on a cardholder's
shopping patterns, spending history, or behavioral characteristics
derived from account activity which is provided to any person or
entity for consideration. "Marketing information" does not include
aggregate data which does not identify a cardholder based on the
cardholder's shopping patterns, spending history, or behavioral
characteristics derived from account activity.
1749.63. A violation of this title constitutes "unfair competition"
as defined in Section 17200 of the Business and Professions Code and
is punishable as prescribed in Chapter 5 (commencing with Section
17200) of Part 2 of Division 7 of the Business and Professions Code.
1749.64. Notwithstanding any other provision of law, no club card
issuer shall request in a supermarket club card application, or
require as a condition of obtaining a supermarket club card, that an
applicant provide a driver's license number or a social security
account number. This section shall not be construed to prohibit a
club card issuer from requesting a driver's license number or a
social security account number for a supermarket club card that can
also be used as identification for check cashing purposes or to debit
the checking or savings account of the cardholder. However, no club
card issuer shall, as a condition of obtaining a supermarket club
card, require a cardholder to obtain a supermarket club card that can
also be used as identification for check cashing purposes or to
debit the checking or savings account of the cardholder.
1749.65. (a) Notwithstanding any other provision of law, no club
card issuer may sell or share a cardholder's name, address, telephone
number, or other personal identification information.
(b) Nothing in this section is intended to prevent a club card
issuer from providing names and addresses of cardholders to a third
party for purposes of mailing supermarket club card information to
cardholders on behalf of the club card issuer. However, that third
party shall not use the information for any other purpose.
(c) Notwithstanding subdivision (a), this section does not
prohibit a club card issuer from sharing marketing information that
includes cardholder names and addresses if the club card issuer
complies with all of the following:
(1) The club card issuer charges an annual fee for its supermarket
(2) The club card issuer requires cardholders to renew supermarket
club cards annually and to pay an annual renewal fee.
(3) The club card issuer allows only cardholders, and not members
of the public, to make purchases in the supermarket.
(4) The club card issuer provides a privacy statement to the
cardholder in the supermarket club card application and in the club
card issuer's annual renewal material notifying cardholders that
outside companies will be receiving marketing information including
names and addresses of cardholders, and the cardholder has agreed to
allow the club card issuer to share this information.
(5) Prior to selling or transferring names and addresses of
cardholders to an outside company, the club card issuer has obtained
a written confidentiality agreement from the outside company that the
outside company will not sell or share the information with any
California Credit Laws Menu