Roundup: Text Spam Cases Send Clear Message

Companies have been facing robust legal action lately as the TCPA’s rules on text messages are enforced. It is illegal for any business to send text messages to individuals without their express opt-in consent, and class action lawsuits against companies who have sent spam, promotional or even confirmation messages continue to be successful.

It is illegal for any business to send text messages to individuals without their express opt-in consent.

Redbox

Rental kiosk company Redbox is facing a class action over its use of confirmation texts when customers opt out of receiving messages. A case was first filed in 2011 after a consumer asked not to receive text messages, and consequently received a confirmation of this – via text. While many argue this is a clear violation of the TCPA’s rules – especially as the system is automated, which often means by default the act breaks the rules – Redbox has chosen to fight the allegations. Citing their First Amendment right to freedom of speech, the company argues that texts are the least invasive way of confirming a customer’s choice, while also pointing out that rather than being spam or advertisement, the texts are simply the easiest way to confirm a subscriber’s choices. It looks unlikely, however, that Redbox will win this one.

Papa John’s

In 2010 Agne, et al. v. Papa John’s International Inc., et al. accused Papa John’s of violating TCPA rules by using an automated dialer to send thousands of advertisements to customers as text messages – and the company has now agreed to a $16.5 million settlement, subject to approval. The settlement will see eligible class members receive $50 and a voucher for a free pizza. Papa John’s had argued that the company cannot be held accountable for the actions of franchises, but the final ruling found that even franchise-level decisions to hire Ontime4U, the dialer company, had company involvement.

LA Lakers

In another case centered around an opt-out confirmation, the LA Lakers are currently fighting David Emmanuel after he elected to receive texts and then send a STOP request, only to receive a further message. The case is complicated because LA Lakers accuse Emmanuel and his attorneys of working together to set up the case, and also argue that there’s no proof of automated systems being used to contact him.

Path

The mobile social network is facing action from Kevin Sterk, of Illinois, who alleges that he received a text containing update information despite never consenting to receive any messages. Sterk is reportedly arguing that messages from unknown sources are aggravating and can, depending on an individual’s contract, cost money.

Viacom

Viacom, Inc. may face a class action after consumers were sent texts with promotions in them after voting in the MTV Music Awards. The tests were part of an audience poll and, the lawsuit alleges, included no consent from viewers to be contacted again, and that no interest in receiving promotions was shown. As they were also no for emergency purposes, the TCPA may have been broken.

Wal-Mart

Sometimes confirmation texts can go too far – and Wal-Mart is now facing a possible class action after it sent a second STOP confirmation to a consumer. Elizabeth Ibey originally opted in to receive texts related to products she bought online. After receiving a confirmation once she informed them she no longer wanted messages, Ibey received a second confirmation – and it is this message which may have broken TCPA rules. The message, unsolicited, may also have been sent by an automated system with the ability to call or text random recorded numbers, but the fact that it was sent after Ibey had opted out may be the key to the outcome.

Steve Madden

Shoe retailer Steve Madden has just this month agreed an approved settlement of $10 million in a putative class action case brought by customers who received unwanted text messages. The messages included advertisements, thus breaking the federal laws, and now class members will be able to claim up to $150 unless more than $10 million worth of claims are filed.