In June 2011 Apple was sued by a David Krescent. Krescent suggested that Apple violated a 1991 California law when it requested that he provide his address and phone number in order to open an iTunes account.
In November 2012 Apple was leading a legal challenge to overthrow the California law that limits the amount of personal information required before consumers can make a credit card purchase.
Apple said the Song-Beverly Credit Card Act was “incompatible” with today’s online commerce and should apply only to brick-and-mortar businesses. But consumer rights advocates wanted the law to apply when credit cards are used online. They claimed that online retailers can still protect against fraud without forcing customers to reveal private information such as their address or phone number.
The majority of the seven justices in the Krescent case found that the Song-Beverly Credit Card Act applies only to brick-and-mortar businesses.
Justice Marvin Baxter said: “The statutory language suggests that the Legislature did not contemplate commercial transactions conducted on the Internet.”
It was concluded that online retailers are unable to verify the consumers identity in the way that the offline retailers can.
The law was last revised 21 years ago in 1991 – years before the iTunes Store arrived.
Apple was backed by Walmart, eBay and others in its arguments.
You can read the details of the Supreme Court decision here.