Topic: Advertisements

S.D. Cal. Court Dismisses Claims, Finding Text Messages at Issue Were Not “Telephone Solicitations”

The Southern District of California recently granted (in part) a motion to dismiss in Gross v. GG Homes, Inc., 2021 WL 2863623 (S.D. Cal. 2021), because the text messages at issue were not “telephone solicitations” within the meaning of the TCPA. Notably, the Court found that the text messages did not qualify as solicitations because they were “targeted at procuring services from Plaintiff” (as opposed to selling something to Plaintiff).

Plaintiff alleged that Defendant (a real estate firm) violated the TCPA when it sent text messages (and placed calls) to her cell phone. Defendant filed a motion to dismiss challenging her Article III standing as well as the sufficiency of her factual allegations for her TCPA claims. The Court began by rejecting Defendant’s arguments that Plaintiff lacked standing, that Plaintiff failed to allege facts showing that Defendant might be responsible for the texts at issue, and that Plaintiff failed to allege that Defendant used an ATDS to send the text messages. But the Court agreed with Defendant that Plaintiff’s § 227(c) claims—based on sending the text messages to a number on the national Do-Not-Call Registry—must be dismissed.

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Sixth Circuit Rejects Strict Liability for Products Advertised via Fax, “Some Level of Knowledge” Required

The U.S. Court of Appeals for the Sixth Circuit recently re-affirmed its position that manufacturers of products advertised in unsolicited fax messages do not face strict liability under the TCPA’s junk-fax provision.  To face liability, the manufacturers must at least be aware that fax advertisements are being sent.

In Lyngaas v. Curaden AG, a dentist sued a Swiss toothbrush manufacturer, Curaden AG, and its American subsidiary, Curaden USA, for sending unsolicited fax advertisements for their toothbrushes.  992 F.3d 412, 417 (6th Cir. Mar. 24, 2021).  The district court concluded that Curaden AG could not be held liable for the faxes because Curaden USA had designed and broadcasted the faxes on its own, without parent authorization.  Id. at 423.  On appeal, the dentist argued that FCC regulation extended liability to any entity “whose goods or services are advertised or promoted” in a fax, regardless of knowledge.  Id. at 424 (quoting 47 C.F.R. § 64.1200(f)(10)).

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