Ann Johnson-Stromberg The Times-Standard
Eureka Times Standard

If you purchased merchandise from The Children's Place and used a credit card between November 2003 and October 2005, you may be an unwitting participant in a class action lawsuit filed on your behalf.

According to Gene Stonebarger of Lindsay & Stonebarger Law Firm, The Children's Place was sued on behalf of their clients because the company violated the Song-Beverly Credit Card Act of 1971 that states a retailer cannot request and record personal identification information from customers who use credit cards. In a phone interview from Sacramento, Stonebarger said The Children's Place then sent those collected phone numbers to a third party data provider and cross referenced the phone numbers to acquire their customers home addresses for marketing purposes. This process, also known as database mining “opens consumers up to identification theft,” he said.

Approximately 1.3 million Californians were notified in the past week about the suit and Stonebarger estimates that potential benefits to the class could weigh in at about $26 million. The company has agreed to give the class a one-time 30 percent off coupon for an entire purchase and for those who fill out the paperwork, a $10 gift certificate as well.

Stonebarger was concerned because some erroneous information was detailed in the settlement information sent out that said the coupon is good for 30 percent off your purchase up to $100. There is “absolutely no cap” to the purchase, he said and added that class members will be another mailed notification to clarify that.

For those who used their credit card or debit card in a California store during the November 2003 to October 2005 time period and did not receive settlement notification, Stonebarger said it is possible the database mining didn't find an address. Those interested in participating in the class action lawsuit can download the forms online at http://www.gardencitygroup.com/childrensplacesettlement.

Numerous phone calls to The Children's Place headquarters and the attorney representing the company in the suit were not returned by deadline.

There are 805 Children's Place stores in the country, but only California stores are part of the lawsuit.