D.C. Circuit refutes FCC’s Authority to Require Opt-out Notices on Solicited Faxes . . . and Chairman Pai Agrees

In a post immediately following the November 8, 2016 oral argument in Bais Yaakov of Spring Valley v. FCC, No. 14-1234 (D.C. Cir.), we noted that, based on the lines of questioning from the bench, the three judge panel of Judges Brett M. Kavanaugh, Cornelia T.L. Pillard, and A. Raymond Randolph appeared to be leaning toward a 2-1 decision with Judges Kavanaugh and Randolph likely forming the majority that would find that the FCC was not empowered to require opt-out notices on solicited faxes. On March 31, the DC Circuit issued its opinion and confirmed our analysis, finding in a 2-1 opinion authored by Judge Kavanaugh (joined by Judge Randolph) that “the FCC’s 2006 Solicited Fax Rule is . . . .unlawful to the extent that it requires opt-out notices on solicited faxes.” Slip Op. at 4. The Court therefore vacated the 2006 Fax Order and remanded to the FCC for further proceedings. It declined to address the propriety of the waiver program, finding it moot in light of its holding. Slip. Op. at 11 n.2. Continue reading

Plaintiffs Continue to Target Retail Text Programs

In TCPA Blog’s latest column for Law360, Mike Daly and Meredith Slawe discuss the “unrelenting” pace of TCPA litigation in 2017, particularly claims targeting retail text message programs. They discuss the FCC’s rulings on number of issues and explore the different approaches of the previous administration and the current administration under Chairman Ajit Pai. They also recount what Chairman Pai has described as the “ridiculous lengths” to which some plaintiffs have gone to exploit the TCPA:

That was, if anything, an understatement. Some plaintiffs have taken to buying phones and requesting area codes for regions where debt collection calls are common,  hiring staff to log calls in order to file hundreds of lawsuits,  porting a repeating digit phone number from a landline to a cellphone,  asking employees to text ‘JOIN’ to unknown company numbers,  and even teaching classes on how to sue telemarketers. Others have sent demand letters after purporting to revoke their consent—often moments after enrolling in a text program—by using anything other than the obvious word “stop.” These plaintiffs will receive text advising them that they can opt out by texting “stop” but will try to trap businesses by responding with unorthodox synonyms such as “cease,” “desist,” “refrain,” or “halt,” which will not trigger many opt-out mechanisms. Responses such as these are not even believable, let alone “reasonable.” And the certification of a class of such people would be inappropriate for a whole host of reasons. But plaintiffs know that defending even these claims would not be without cost or inconvenience, and businesses continue to receive demand letters every day.

They conclude that, “[i]n the absence of meaningful congressional or regulatory reform and as we await a ruling from the D.C. Circuit on the proper interpretation of the statute, retailers should continue to mitigate their TCPA risk by observing best practices and engaging in active vendor management.”

Click here to read the full article.

Dish Network Seeks New Trial After $20 Million TCPA Jury Verdict

Dish Network LLC (“Dish”) recently filed a motion for a new trial after a jury found Dish liable for more than 51,000 calls to 18,000 class members, resulting in an award of $20.5 million.

In Krakauer v. Dish Network LLC, No. 14-0333 (M.D.N.C.), the plaintiff alleged that he had received telemarketing sales calls from an authorized dealer of Dish despite registering his number on the National Do Not Call Registry. He further alleged that these calls continued even after his telephone number was placed on both Dish’s and its authorized dealer’s internal Do Not Call Lists. Before trial, the court certified two classes: the first consisting of persons who received telemarketing calls despite having their telephone numbers on the National Do No Call Registry, and the second consisting of persons who received telemarketing calls despite having their telephone numbers on the internal Do Not Call Lists of Dish or its authorized dealer. Continue reading

Eastern District of Michigan Dismisses Claim Because Fax Was Not An Advertisement

The Eastern District of Michigan recently dismissed a TCPA claim with prejudice after finding that the single fax at issue did not constitute an advertisement. See Matthew N. Fulton, D.D.S., P.C. v. Enclarity, Inc., No. 16-13777, 2017 U.S. Dist. LEXIS 28439 (E.D. Mich. Mar. 1, 2017). In doing so, it reaffirmed the Sixth Circuit’s position that, in deciding whether a fax is an advertisement, courts should not look beyond the four corners of the document and should ask whether it “‘promote[s] goods or services to be bought or sold’” and “‘ha[s] profit as an aim.’” Id. at *4 (citation omitted). Continue reading

Looking Lonely: Commenters Show Little Love for Serial Plaintiffs’ Petition

The initial comments are in on the Petition of serial plaintiffs Craig Moskowitz and Craig Cunningham to require written consent for autodialed informational calls, and reactions are overwhelmingly negative. A diverse group of trade associations, nonprofits, medical institutions, and others flooded the docket with over thirty formal comments opposing the Petition. In addition to these formal comments, there were several short, informal comments submitted via the FCC’s “express” filing system by employees of credit unions and other financial institutions opposing the Petition. Just three comments expressed support. Continue reading