In the digital age, businesses rely heavily on text message marketing campaigns to engage with consumers. While this method can strengthen customer relationships and boost sales, it also carries significant legal risks. The Telephone Consumer Protection Act (TCPA) is designed to protect consumer privacy from unsolicited calls and unsolicited text messages. However, many businesses unknowingly fall into non-compliance, leading to costly TCPA lawsuits that can amount to millions in statutory damages.
In 2014, Burger King faced an $8.5 million TCPA lawsuit for sending fax advertisements without providing an opt-out mechanism — a single misstep that cost millions. This case highlights how critical it is for businesses to understand the intricate regulations under the TCPA and the Code of Federal Regulations (CFR) to avoid legal action and maintain compliance.
What is the Telephone Consumer Protection Act (TCPA)?
The Telephone Consumer Protection Act (TCPA) is a federal law enacted in 1991 to safeguard consumers against unwanted telemarketing calls, text messages, and faxes. The law aims to protect consumer privacy by regulating how businesses contact consumers.
Purpose of TCPA
The primary purpose of the TCPA is to:
Prevent businesses from bombarding consumers with unsolicited marketing messages.
Ensure businesses obtain prior express consent before making telemarketing calls or sending text messages.
Provide consumers with the ability to opt out of future communications.
Empower consumers to take legal action against companies that violate their privacy rights.
The Federal Communications Commission (FCC) enforces the TCPA, setting detailed rules on what constitutes a violation and how businesses must maintain compliance. Despite its broad scope, many companies misinterpret the TCPA, resulting in TCPA complaints and class action lawsuits.
What is CFR and How Does It Relate to TCPA?
The Code of Federal Regulations (CFR) provides the actionable regulations businesses must follow to stay compliant with the TCPA. Specifically, 47 CFR § 64.1200 outlines the enforceable rules set by the Federal Communications Commission (FCC). These regulations clarify the specific steps businesses must take to avoid TCPA violations.
Key Provisions Under 47 CFR § 64.1200
Calling Numbers on the National Do Not Call Registry (§ 64.1200(c)(2))
Businesses cannot (manually or auto) contact consumers listed on the DNC Registry.Automatic Telephone Dialing Systems (ATDS) Without Consent (§ 64.1200(a)(1))
Using an automatic dialing system or pre-recorded messages without prior express consent violates the law.Calling Outside Permitted Hours (§ 64.1200(c)(1))
Telemarketing calls must only be made between 8:00 a.m. and 9:00 p.m. (recipient’s local time).Failure to Provide Opt-Out Mechanisms (§ 64.1200(b)(2))
Every message must provide an option to opt out of future communications.Revoked Consent (§ 64.1200(a))
Consumers can revoke consent at any time, and businesses must honor the request promptly.Ignoring Do Not Call Requests (§ 64.1200(d)(3))
If a customer requests to opt out, any future messages are considered a violation.
These provisions are the most common reasons companies face TCPA claims and TCPA class action lawsuits.
Why Do Businesses Overlook CFR Regulations?
Many companies believe that simply following the broad rules laid out in the TCPA will ensure compliance. However, the CFR regulations contain the fine details that businesses often miss. A widespread misconception is that manually dialing numbers or sending text messages without using an automatic dialing system exempts companies from TCPA violations. However, contacting numbers on the National Do Not Call Registry without proper consent is still illegal, regardless of the dialing method.
Moreover, businesses frequently neglect the following critical compliance measures:
Implementing opt-out mechanisms.
Maintaining internal Do Not Call policies.
Training employees on TCPA compliance.
Honoring revoked consent requests.
Documenting consent and compliance efforts.
These oversights leave businesses vulnerable to TCPA litigation and class action lawsuits.
Consequences of TCPA Violations
Failing to adhere to TCPA compliance can have devastating financial and reputational impacts. TCPA lawsuits are often pursued on a per violation basis, with many companies facing statutory damages ranging from $500 to $1500 per unsolicited text message or call. These cases can quickly escalate into class action lawsuits, resulting in massive TCPA settlements and legal fees.
Real-Life TCPA Class Action Lawsuits
Capital One (2014) – $75.5 Million Settlement
Capital One faced a TCPA class action lawsuit for making auto-dialed calls to consumers without obtaining prior express consent. Plaintiffs alleged that the bank, along with several collection agencies, used robocalls to contact customers regarding overdue credit card payments. These automated calls repeatedly reached consumers on their cell phones, even when they had not given explicit permission for such communications.
The case, consolidated under In re: Capital One Telephone Consumer Protection Act Litigation, involved multiple lawsuits filed across the United States. Plaintiffs argued that the calls violated the Telephone Consumer Protection Act (TCPA), which prohibits unsolicited robocalls to mobile phones without prior consent.
In 2014, Capital One and three debt collection agencies agreed to settle the lawsuit for $75.5 million. This settlement covered over 700,000 class members, with individual payouts varying based on the number of calls received. The case underscored the legal risks companies face when violating TCPA regulations through aggressive debt collection practices.
Papa John’s (2013) – $16.5 Million Settlement
Papa John’s became the target of a TCPA class action lawsuit after sending hundreds of thousands of unsolicited text messages promoting its pizza deals. Plaintiffs alleged that the text marketing campaign, conducted on behalf of franchisees, violated the Telephone Consumer Protection Act (TCPA) because recipients had not given prior express consent to receive promotional messages.
The lawsuit, filed in Washington federal court, accused Papa John’s International, Inc. and its text message marketing vendor of bombarding customers with spam text messages offering discounts and special deals. Consumers complained that the texts were repetitive, intrusive, and sent without permission, violating their privacy.
In 2013, Papa John’s agreed to pay $16.5 million to settle the case. The settlement allowed affected customers to claim up to $50 or more per unsolicited text message received. The case reinforced that businesses must obtain clear consent before engaging in automated text message marketing, or risk facing costly TCPA lawsuits.
How We Help Plaintiffs in TCPA Litigation
At Bourassa Law Group, we advocate for consumers whose privacy rights have been violated under the TCPA. Our legal team leverages CFR regulations to build cases that hold companies accountable for their unlawful marketing practices.
Our approach involves:
Investigating whether businesses contacted numbers listed on the National Do Not Call Registry.
Examining the lack of prior express written consent for marketing communications.
Demonstrating failures to provide opt-out mechanisms or honor revoked consent requests.
Reviewing businesses’ internal Do Not Call policies and compliance efforts.
We are committed to helping plaintiffs seek compensation while driving businesses to adopt more responsible marketing practices.
Protecting Consumer Privacy Through Legal Action
If you’ve received unsolicited calls or text messages without your consent, the law empowers you to seek statutory damages and recover expenses related to the violation. By taking legal action, you can play a key role in holding companies accountable for their marketing practices and protecting consumer privacy on a larger scale.
Bourassa Group Is Here For You
TCPA violations can cost companies millions in statutory damages, legal fees, and class action settlements. Many businesses unknowingly break the law by failing to follow the detailed regulations outlined in the CFR. Understanding the difference between the TCPA and its accompanying regulations is crucial for maintaining compliance and protecting consumer privacy.
If you’ve received unsolicited text messages or calls without your consent, you may be entitled to compensation. Our team of experienced attorneys at Bourassa Law Group are dedicated to understanding your unique case and securing the best possible outcome for you.
Contact us today for a free consultation to learn more about your rights and take action against TCPA violations.
1-800-870-8910