Loophole cannot enforce arbitration in credit card information exchange


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 …

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