Rental car companies also require a credit card - I don't think it's even possible to rent a car any longer with just cash, for one reason it's a huge red flag that the renter may have business that's not quite legal. It also protects the rental car company against damage or driving violations discovered after you drop the car off.

So... do rental car companies use your credit card # to track you? Or is it strictly to protect them against renters using their cars for illegal purposes and against damage?

This is not the same at all. The car company can use the data in case you do bad stuffs with the car to help them / their insurance to track law abuses. They use the CC for the transaction and eventualy law enforcement.

On the other hand you have Apple which may try to use your CC number to be sure you didn't buy 10 iphones. THEY use your CC numbers for other things than transaction or law enforcement here - for their private use. Here is the issue.

I believe that the iTunes account required by the iPhone also requires a credit card on file.

No, this is a good point, I think.

It's been pretty much established on the intarweb boards that Apple isn't doing anything illegal requiring customers to purchase the iPhone using plastic. That's indisputable, and so rental car agencies are the same.

The point here is that, the only reason why Apple is mandating plastic use is seems to be that Apple could use the credit card info block a potential unauthorized reseller from buying more that 2 iPhones on the same card. THAT is what's being questioned here. Can Apple legally do that?

With rental cars it's different. They're not using your credit card number to do a background research. They're keeping that information so that in the case that you, the renter, do something illegal (e.g., take off with the car) THEN they could use that information against you, like report it to the police, etc.

That's a big difference.

If the PCI DSS policy (or whatever it is) says that a retailer can only use my CC info to complete the transaction, then there are many, many retailers who are in violation. I can think of at least three stores that I started getting catalogs from after making CC purchases. Two of them I've only set foot in once each, made one purchase. And now I get catalogs to my name and address. The ONLY way they could have gotten that is based on my CC info.

To think even for one millisecond that Companies don't use your credit card num and information for a whole mess of things other than just processing a transaction is naive is best and moronic at worst. This is done in complete cooperation with all the major credit card companies. There is nothing altruistic about it - whole portfolios exist for anyone who uses a credit card tying our purchasing and movements together. Policy's (assuming one exists) exist only in so far as they are enforced. It's against federal law for anyone to use your SS# for anything but social security but that hasn't turned out well. And there's nothing to say if a company has large enough purchasing power that exemptions can't be negotiated. Etc., etc.,...

Just another Apple policy up for speculation and debate. And why? Oh, because Apple believes it has no need to inform their customers (or potential customers) as to why or what they are doing.

Apple Inc, one of the few companies doing their best to limit the sale of their merchandise.

"Apple Inc, one of the few companies doing their best to limit the sale of their merchandise."

And failing miserably! :-)

I would be curious to once hear on CNN, Mr. Bush telling american people that their cash dollars won't be accept anymore as the (THE) legal way of payment in certain shops or business. We may understand when thousands or tens or millions of dollars are in the game, but for that amount ! ! ! What is the position of the Fed, on the fact that their physical pieces of paper called US Dollars are not accepted as the way of payment in an american shop ? Are people accepting the liberalism like that ? "Do what ever you want to do, the only thing is : Don't get caught !"

Everything you buy with your credit card is recorded. Dont believe me? Just go to any "mailing list" provider - you can buy a list of anyone in whatever town you are in that has an income over 50K and has purchased a lawn mower in the last year.

This is standard "gray area" stuff - but it happens everyday. Just ask yourself where that last piece of "junk mail" came from and how did it come to you?

Doofuses.