Loophole cannot enforce arbitration in credit card information exchange

By Margaret N. Yarbrough Last updated Jul 13, 2021

Law360 (Jul 12, 2021, 7:47 p.m. EDT) – The Gap Inc. cannot enforce arbitration in a proposed class action lawsuit alleging that it violated the California Consumer Privacy Act by using data from Gap- Software company passes credit card users to third party, with a federal judge finding that the bank that issues the cards is the party who could enforce arbitration.

U.S. District Judge John W. Holcomb said in Thursday’s injunction that the gap cannot invoke the arbitration clause in a credit card agreement that plaintiff Christine Alire allegedly agreed to in May 2019 because the company was not clearly an intended third party beneficiary Contract.

“A simple reading of the clause …

Stay ahead of the curve

In the legal profession, information is the key to success. You need to know what is happening to customers, competitors, practice areas and industries. Law360 offers the intelligence you need to stay an expert and beat the competition.

Access case data within articles (numbers, filings, courts, type of lawsuit, and more.)
Access to attached documents such as Briefs, petitions, complaints, decisions, applications, etc.
Create custom notifications for specific article and case topics, and more!

TRY THE LAW360 FREE SEVEN DAYS

Loophole cannot enforce arbitration in credit card information exchange

Stay ahead of the curve

Related posts: