A federal appeals court has dismissed a proposed class action filed on behalf of Redbox customers in California, after concluding the kiosk retailer didn’t illegally ask for their ZIP codes.
The U.S. Court of Appeals for the Ninth Circuit held on Friday that Redbox Automated Retail LLC, which rents out DVDs and video games for $1 per day from red kiosks, does not violate California’s Song-Beverly Credit Card Act of 1971 because its credit card transactions, which require customers to enter their ZIP codes, are used as deposits in case they fail to return the products.
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