Posted: August 23, 2016
Most organizations reaching out to their customers’ cell phones via text message or phone call with an ATDS are not immune to the TCPA. This includes one of the most successful and profitable businesses on this planet, professional football teams.
In 2014, the Buffalo Bills were served with a lawsuit claiming they sent more texts to their fans than promised in the opt-in agreement. The Bills outlined that, by signing up for text alerts and news about the team, the organization would only deliver a maximum of 5 messages per week to the subscriber. The lawsuit alleged that the team violated the terms of its texting program by delivering more than 5 text messages per week. Specifically, the class representative received 13 text messages in two weeks, not 10 as promised.
While this seems nitpicky, the Bills ended up settling and agreed to pay $2.5 million in gift cards to its fans who signed up for the texting program as well as pay for counsel and administration fees which totaled over $500,000. The Bills also paid the class representative $5,000. The three text messages in question cost the Bills just over $1 million each when all was said and done.
Some things to keep in mind for organizations that are reaching their consumers and fans via text message:
This settlement serves as a firm reminder that even organizations that do not typically associate themselves with needing to comply with the mobile marketing and telemarketing rules and regulations can be caught in a class action lawsuit under the TCPA. The FCC’s broad brush approach to the TCPA ensures that the majority of organizations texting and calling cell phones with an ATDS are subject to the regulation.
If you have any questions regarding text message compliance or other compliance matters, please reach out to us at firstname.lastname@example.org.
We also invite you to check out our webinar titled “Text Messages: Promising, Yet Risky, Forms of Communication.” CLICK HERE to view the recording.
Matt Dumiak is Director of Privacy Services, Customer Engagement Compliance at CompliancePoint focused on U.S. and international direct marketing compliance regulations. He works with clients in a variety of industries and is dedicated to providing reliable and practical consulting services. Matt has earned a Certified Information Privacy Professional (CIPP/US) certification from the International Association of Privacy Professionals (IAPP), a Customer Engagement Compliance Professional (CECP) certification from the Professional Association for Customer Engagement (PACE), and has a B.S. in Economics from Georgia College.