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Web Messaging Platforms After The FCC’s Declaratory Ruling

While various petitioners are challenging the FCC’s July 10, 2015 Declaratory Ruling before the D.C. Circuit, a recent district court decision is one of the first to address its impact on a pending TCPA claim. See Luna v. Shac, LLC, No. 14-cv-00607-HRL, 2015 U.S. Dist. LEXIS 109841 (N.D. Cal. Aug. 19, 2015). The decision confirms that even after the Declaratory Ruling, if the platform requires human intervention to send text messages, it will not be deemed an automated telephone dialing system (“ATDS”).

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1st Circuit weighs in on Rule 68 Mootness Issue; Laments that “Uncertainty will Reign” until Supreme Court provides Guidance on Class Action Pick-Offs

We’ve been watching closely as the various Circuit Courts of Appeals grapple with whether a Rule 68 offer of judgment to the named plaintiff in a putative class action can render the case moot even if the plaintiff rejects the offer and wants to keep litigating. As we noted in a previous post, the U.S. Supreme Court is set to resolve the issue soon.

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Centralization – When Is It an Option?

On Friday August 7, 2015, the Judicial Panel on Multidistrict Litigation (the “Panel”) issued four decisions in pending TCPA cases:  In re Holiday Cruise Line Tel. Consumer Prot. Act (TCPA) Litig., MDL No. 2637, 2015 U.S. Dist. LEXIS 103628 (J.P.M.L. Aug. 7, 2015) (denying motion for centralization); In re: Local Lighthouse Corp. Tel Consumer Prot. Act (TCPA) Litig., MDL No. 2644, 2015 US. Dist. LEXIS 103637 (J.P.M.L. Aug. 7, 2015) (denying motion for centralization); In re Portfolio Recovery Assoc., LLC, Tel. Consumer Prot. Act (TCPA) Litig., MDL 2295, 2015 U.S. Dist. LEXIS 103929 (J.P.M.L. Aug. 7, 2015) (granting motion to transfer for inclusion in coordinated or consolidated proceedings) and; In re Sirius XM Radio, Inc. Tel Consumer Prot. Act. (TCPA) Litig., MDL No. 2635, 2015 U.S. Dist. LEXIS 103629 (J.P.M.L. Aug. 7, 2015) (denying motion for centralization).  The four cases have relatively little in common aside from the fact that each involved a claim under the TCPA: In re Portfolio Recovery Assocs. involved alleged debt collection calls over VOIP lines, In re Sirius involved marketing calls that occurred after a free subscription to Sirius XM radio expired, In re Holiday Cruise Line involved unsolicited text messages, and In re Local Lighthouse Corp. involved marketing calls to both cellular and landline numbers. Despite the factual differences between the cases, there are two broad lessons from this group of decisions.

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CodeBroker, LLC Files Additional Challenge to the FCC’s July 10, 2015 Declaratory Ruling and Order

On August 14, 2015, CodeBroker, LLC (“CodeBroker”) filed a petition for review of the FCC’s July 10, 2015 Declaratory Ruling and Order with the United States Court of Appeals for the District of Columbia Circuit.

This petition was consolidated with the previous petitions filed by ACA International, PACE, and Sirius XM Radio, Inc. on August 17, 2015. CodeBroker challenges: (1) the FCC’s determination that prior express consent may be revoked through “any reasonable means,” (2) the FCC’s treatment of prior express written consent with “respect to its requirement that callers obtain new prior express written consent for each call or text message made to a wireless number, and (3) the FCC’s interpretation of the term “called party” as the current subscriber or customary user of the phone instead of the intended recipient of the call.” Id. at 2-3.

CodeBroker asks the DC Circuit to vacate the Order or hold unlawful: (1) the FCC’s treatment of text messages sent to reassigned wireless telephone numbers, (2) the FCC’s determination that prior express consent may be revoked by “any reasonable means,” (3) the FCC’s determination that callers “seek prior express written consent for each call or text message sent to a wireless number,” and (4) the FCC’s treatment of reassigned numbers and compel the FCC to define “called party” as the intended recipient of the call or text and establish a viable safe harbor for text messages sent to reassigned numbers. Id. at 3-4.

Stay tuned as we continue to provide updates on developments in the consolidated appeal of the FCC’s July 10, 2015 Declaratory Ruling and Order.

PACE and Sirius XM File Statements of Issues in the Appeal of the FCC’s July 10, 2015 Declaratory Ruling and Order

On August 17, 2015, the Professional Association for Customer Engagement, Inc. (“PACE”) and Sirius XM Radio Inc. (“Sirius”) (collectively, the “Petitioners”) filed identical statements of issues (read the PACE statement and the Sirius XM statement) in the consolidated appeal of the FCC’s July 10, 2015 Declaratory Ruling and Order. The Petitioners’ statements focus on the following issues: (1) the FCC’s interpretation of the terms “capacity” and “called party” under the TCPA, (2) the FCC’s one call safe harbor provision for calls made to reassigned numbers, (3) the FCC’s treatment of revocation, and (4) the FCC’s authority to require prior express written consent for telemarketing calls.

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ACA International Files Statement of Issues in its Appeal of the FCC’s July 10, 2015 Declaratory Ruling and Order

On August 12, 2015, ACA International (“ACA”), one of three petitioners in the consolidated appeal of the FCC’s July 10, 2015 Declaratory Ruling and Order, filed a statement of issues (D.C. Cir. filed Aug. 12, 2015) in its appeal of the FCC’s Order. ACA raises the following issues: (1) the FCC’s redefinition of an ATDS, (2) prior express consent, and (3) the FCC’s deviation from the statute’s intent.

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A Cell Phone Area Code May Not Be Enough to Establish Personal Jurisdiction

In a recent Southern District of Texas decision, Cantu v. Platinum Mktg. Group, Case No. 1:14-CV-71, 2015 U.S. Dist. LEXIS 90824 (S.D. Tex. Jul. 13, 2015), plaintiff Hector Cantu brought suit against defendant Platinum Marketing Group LLC d/b/a/ DiabetesHelpNow.com, LLC (“Platinum”) for calls made to his cell phone in violation of the TCPA. In considering Cantu’s motion for entry of default judgment, the court concluded that it lacked personal jurisdiction over the defendant.

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7th Circuit Reverses Course on Article III Standing Where Plaintiff Declines a Rule 68 Offer of Complete Relief

In an August 6, 2015 opinion, the Seventh Circuit ruled that a defendant’s offer of complete relief in a TCPA lawsuit did not render an individual plaintiff’s claims moot. Chapman v. First Index, Inc., Nos. 14-2773, 14-2775, 2015 WL 4652878 (7th Cir. Aug. 6, 2015). In Chapman, the Seventh Circuit expressly “overrule[d]” its prior decisions in Damasco v. Clearwire Corp., 662 F.3d 891 (7th Cir. 2011), Thorogood v. Sears, Roebuck & Co., 595 F.3d 750 (7th Cir. 2010), and Rand v. Monsanto Co., 926 F.2d 596 (7th Cir. 1990), “to the extent they [held] that a defendant’s offer of full compensation moots the litigation or otherwise ends the Article III case or controversy.”

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Council of American Survey Research Organizations and the Marketing Research Association File Motion to Intervene in Support of Consolidated Appeal of FCC’s July 10, 2015 Declaratory Ruling

As we previously noted, on August 7, 2015, MRS BPO LLC, Cavalry Portfolio Services, LLC, Diversified Consultants, Inc., and Mercantile Adjustment Bureau, LLC filed a joint motion for leave to intervene in the consolidated appeal of the FCC’s July 10, 2015 Declaratory Ruling and Order, or in the alternative, leave to participate as amici curiae in support of petitioner, ACA International. On August 12, 2015, the Council of American Survey Research Organizations (“CASRO”) and the Marketing Research Association (“MRA”) (collectively, “Intervenors”) filed their own joint motion for leave to intervene in the consolidated appeal of the FCC’s Order. See Motion to Intervene (D.C. Cir. filed Aug. 12, 2015).

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Debt Collection Agencies File Motion to Intervene in Support of Consolidated Appeal of FCC’s July 10, 2015 Declaratory Ruling

As we previously noted, three petitions for review were filed in the immediate aftermath of the FCC’s Declaratory Ruling and Order, which were then consolidated and randomly assigned to the United States Court of Appeals for the D.C. Circuit. On August 7, 2015, MRS BPO LLC, Cavalry Portfolio Services, LLC, Diversified Consultants, Inc., and Mercantile Adjustment Bureau, LLC filed a joint motion for leave to intervene in the consolidated appeal of the FCC’s July 10, 2015 Declaratory Ruling and Order, or in the alternative, leave to participate as amici curiae in support of petitioner, ACA International.

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