At the Federal Communications Bar Association’s TCPA symposium in D.C. last month, panelists from the Federal Communications Commission (FCC) and private practice expressed uncertainty regarding when the D.C. Circuit would issue its much-anticipated ruling in the appeal of the FCC’s July 2015 Declaratory Ruling and Order (the “2015 Order”). It turns out that that day is today. And the ruling was well worth the wait. Continue reading
Happy holidays to all the readers of the TCPA Blog! Below is a link to an article written by Michael Daly, Meredith Slawe, and John Yi on some recent decisions addressing contrived revocation of consent claims in text message based lawsuits.
One of the central issues in the consolidated appeal from the FCC’s July 10, 2015 Declaratory Ruling and Order is whether the term “called party” refers to the intended or actual recipient of the call. The FCC’s Order interpreted the term “called party” to be the “subscriber” or “non-subscriber customary user” of the phone that was called, regardless of whether the caller meant to call someone else. Under this interpretation, businesses that in good faith attempt to contact consumers who have consented to receive such calls face significant liability when those calls reach someone else instead. Continue reading
The explosion of litigation under the Telephone Consumer Protection Act (“TCPA”) has continued through the second quarter of 2017. Businesses have been anxiously awaiting a ruling from the D.C. Circuit in the appeal of the Federal Communications Commission’s (“FCC”) July 2015 Declaratory Ruling and Order as well as reforms from the FCC itself. As the wait continues, promising developments have been emerging from the courts. On June 22, 2017, the Second Circuit—in a common sense and practical opinion in Reyes v. Lincoln Auto. Fin. Servs., No. 16-2104 (2d Cir.)—acknowledged that contract is king and that a party cannot unilaterally modify its terms. In affirming summary judgment in favor of the defendant, the court cited the Restatement (Second) of Contracts and explained that “[i]t is black letter law that one party may not alter a bilateral contract by revoking a term without the consent of a counterparty.” Its opinion in this TCPA action has significant implications for businesses that have standard contracts with their customers. And it is a welcome step in the right direction. Continue reading
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.”
On July 10, 2015, a sharply divided FCC issued a Declaratory Ruling and Order (the “July 2015 Order”) that missed the mark. The July 2015 Order purported to expand the scope of the TCPA through its unsupported redefinition of an “automatic telephone dialing system,” create an untenable one call “safe harbor” for reassigned number liability, and permit parties to revoke consent through any “reasonable” means. The July 2015 Order is presently on appeal in the D.C. Circuit, and there is hope that the Court, which heard argument on October 19, 2016, will undo its pronouncements, which have had broad implications for businesses that place calls and send text messages to consumers for telemarketing or informational purposes. These companies have faced potentially crushing liability through a huge wave of TCPA actions (both proposed class actions and individual claims) as well as pre-suit demands, many of which have been initiated by opportunistic plaintiffs’ lawyers and serial plaintiffs. Continue reading
TCPA Blog’s Michael Daly and Meredith Slawe were recently quoted in the Law360 article, “3 Factors to Weigh in Deciding to Fight or Fold TCPA Suits.” They explained that “[t]he best approach to defending TCPA cases is to master the facts of each case as early as possible and map out multiple paths to victory. Oftentimes, the smallest details can mean the difference between whether or not a call qualifies as ‘telemarketing’ or a consumer provided ‘consent’ or equipment qualifies as an ‘automatic telephone dialing system.’” The remainder of the article examines other factors from both plaintiffs’ and defendants’ perspectives.
In TCPA Blog’s latest Law360 column, Mike Daly, Meredith Slawe, and Dan Brewer discuss why courts should temporarily stay TCPA cases pending the regulatory appeal of the FCC’s July 10, 2015 Order, which is set for oral argument before the United States Court of Appeals for the D.C. Circuit on October 19, 2016. The article addresses the flaw in plaintiffs’ argument that they are prejudiced while awaiting a decision: Continue reading
Yesterday, the United States Court of Appeals for the D.C. Circuit scheduled oral argument for October 19, 2016 at 9:30 a.m. in the consolidated appeal from the FCC’s July 10, 2015 Declaratory Ruling and Order (“Order”). As we previously reported, ACA International filed the first petition for review on the same day the Order was issued. That and subsequent appeals were centralized in the D.C. Circuit by the Judicial Panel on Multidistrict Litigation. The Joint Petitioners filed their opening brief on November 25, 2015, Rite Aid filed a separate brief the same day that focused on healthcare-related issues, the FCC responded to both briefs on January 15, 2016, and the parties filed final briefs on February 24, 2016. Continue reading