Robocall and Spam Text Class Actions: Fighting Back Against Unwanted Communications

Introduction

In an era of constant connectivity, unwanted robocalls and spam text messages have become a pervasive irritation for millions of Americans. These automated communications interrupt our daily lives, violate our privacy, and can even lead to scams and fraud. According to the Federal Communications Commission (FCC), Americans receive billions of robocalls each year, with many households reporting multiple unwanted calls daily.

In response to this growing problem, the Telephone Consumer Protection Act (TCPA) provides consumers with legal recourse against companies that violate telemarketing regulations. Class action lawsuits under the TCPA have become a powerful tool for holding businesses accountable for unwanted robocalls, telemarketing calls, and spam text messages.

These lawsuits not only provide affected consumers with financial compensation but also create significant financial deterrents that encourage companies to comply with telemarketing laws. In this article, we'll explore how TCPA class actions work, examine notable settlements, and explain how you can join a robocall class action if you've been targeted by unwanted communications.

What Are Robocalls and Spam Texts?

Robocalls are automated telephone calls that use computerized autodialers to deliver pre-recorded messages. These calls can come from legitimate businesses, political campaigns, and charitable organizations, but they are also frequently used by scammers and companies engaging in aggressive telemarketing.

Common types of robocalls include:

• Telemarketing calls: Automated calls selling products or services, which are illegal without prior express written consent from the recipient.
• Debt collection calls: Automated reminders about outstanding debts, which must comply with specific regulations.
• Political calls: Campaign messages that are generally exempt from some robocall restrictions but must still identify the caller.
• Scam calls: Fraudulent communications impersonating government agencies, utilities, or financial institutions to extract personal information or money.
• Service announcements: Notifications about appointments, delivery updates, or account information, which are allowed under certain circumstances.

Similarly, spam text messages are unsolicited, bulk communications sent to mobile phones. These can include marketing messages, phishing attempts, or other unwanted communications. Like robocalls, commercial text messages sent without prior consent are generally prohibited under the TCPA.

The problem has grown significantly in recent years due to technological advancements that make it easier and cheaper to place mass automated calls or send bulk text messages. Voice over Internet Protocol (VoIP) technology, caller ID spoofing, and offshore call centers have all contributed to the robocall epidemic, making it more challenging for regulators to combat the issue.

Understanding the TCPA

The Telephone Consumer Protection Act (TCPA) was enacted by Congress in 1991 to address growing consumer concerns about the proliferation of unwanted telemarketing calls. Since then, the FCC has updated and expanded the regulations to address new technologies, including cell phones, text messages, and sophisticated autodialing systems.

Key provisions of the TCPA include:

• Restrictions on autodialed calls: The TCPA prohibits using automatic telephone dialing systems (ATDS) or prerecorded voice messages to call cell phones without prior express consent (which must be in writing for telemarketing calls).
• Text message regulations: The TCPA treats text messages as calls to wireless numbers, applying the same consent requirements as voice calls.
• National Do Not Call Registry: Telemarketers are prohibited from calling numbers on the National Do Not Call Registry, with limited exceptions.
• Time restrictions: Telemarketing calls are restricted to between 8:00 a.m. and 9:00 p.m. local time.
• Identification requirements: Telemarketers must provide identifying information, including the name of the individual or entity responsible for the call and contact information.
• Opt-out mechanisms: Prerecorded telemarketing messages must include an automated interactive opt-out mechanism that allows recipients to immediately tell the caller to stop calling.
• Prior express written consent: For telemarketing calls or texts to cell phones using an ATDS or prerecorded voice, companies must obtain prior express written consent, which must clearly authorize the specific sender to deliver automated telemarketing messages.

One of the most powerful aspects of the TCPA is its private right of action, which allows individuals to sue violators directly. The law provides for statutory damages of $500 per violation, which can be trebled to $1,500 per violation if the court finds that the defendant willfully or knowingly violated the statute. These damages can quickly add up in class action lawsuits involving thousands or millions of illegal calls or texts.

The definition of what constitutes an "automatic telephone dialing system" has been the subject of significant litigation, including the Supreme Court case Facebook v. Duguid (2021), which narrowed the definition to systems that use a random or sequential number generator. However, many robocall violations still occur under even this narrower definition, and other provisions of the TCPA remain fully enforceable.

Common TCPA Violations

TCPA violations occur in various forms, and these violations form the basis for most robocall and spam text class action lawsuits. Understanding the most common types of violations can help you recognize when your rights have been infringed.

The most frequent TCPA violations include:

• Calling without consent: Using an autodialer or prerecorded message to call a cell phone without prior express consent (or written consent for telemarketing calls).
• Texting without consent: Sending automated marketing text messages without obtaining proper prior written consent.
• Calling numbers on the Do Not Call Registry: Making telemarketing calls to numbers listed on the National Do Not Call Registry for more than 31 days.
• Continuing to call after opt-out requests: Failing to honor requests to stop calling or texting, which effectively revokes any previously given consent.
• Calling outside permitted hours: Making telemarketing calls before 8 a.m. or after 9 p.m. in the recipient's local time zone.
• Failing to provide proper identification: Not identifying the business, individual, or other entity responsible for the call and providing a telephone number or address.
• Absence of opt-out mechanisms: Not providing a clear way for recipients to opt out of future communications during prerecorded telemarketing calls.
• Abandoned calls: Failing to connect the recipient to a live operator within two seconds after they answer.

Industries frequently involved in TCPA class actions include:

• Financial services: Banks, lenders, debt collectors, and credit card companies are common defendants in TCPA litigation, often related to debt collection calls or marketing of financial products.
• Retail: Retailers that engage in text message marketing campaigns without proper consent procedures.
• Health care: Medical providers, pharmacies, and health insurance companies that send appointment reminders or marketing communications without proper consent.
• Telecommunications: Phone service providers and cable companies that use autodialers for marketing or service calls.
• Travel and hospitality: Hotels, resorts, and travel agencies that engage in telemarketing to previous customers or prospects.
• Educational institutions: Colleges and training programs that use automated dialing systems to contact potential students.

A key issue in many TCPA cases is the question of consent—specifically, whether the consumer provided the necessary level of consent for the type of call received and whether that consent was still valid at the time of the call. Many businesses attempt to obtain TCPA consent through fine print in terms of service or purchase agreements, but courts often scrutinize whether such consent was clear and unambiguous.

Statutory Damages and Recovery

One of the most significant aspects of the TCPA that makes it such a powerful tool for consumers is its statutory damages provision. Unlike many other consumer protection laws that require proof of actual monetary harm, the TCPA provides fixed statutory damages for each violation:

• $500 per violation for negligent violations (standard amount)
• Up to $1,500 per violation for willful or knowing violations (treble damages)

These damages apply to each individual call or text that violates the TCPA. In the context of a class action lawsuit where thousands or even millions of illegal calls or texts may have been made, potential damages can quickly reach astronomical figures.

For example, if a company sent 100,000 unsolicited text messages using an autodialer without proper consent:

• At $500 per text, potential liability would be $50 million
• If those violations were found to be willful, potential liability could reach $150 million

These large potential damages create significant leverage for class action settlements, even though courts rarely award the full statutory damages in large class actions. Instead, most TCPA class actions settle for a fraction of the maximum potential statutory damages to avoid the risk of catastrophic judgments that could bankrupt companies.

It's important to note that in class action settlements, individual class members typically receive much less than the statutory damages amount. The actual recovery for class members in TCPA settlements often ranges from $20 to $100 per class member, depending on factors such as:

• The total settlement amount
• The number of class members making claims
• The strength of the liability case
• The defendant's financial resources
• Administrative costs of the settlement
• Attorneys' fees (typically 25-33% of the settlement fund)

While these individual recoveries may seem modest compared to the statutory damages, they are still meaningful compensations for what might otherwise be considered minor annoyances. More importantly, the aggregate effect of these lawsuits creates significant financial incentives for companies to comply with the TCPA, benefiting all consumers through deterrence of unwanted communications.

Notable Robocall Class Action Settlements

TCPA litigation has resulted in some of the largest class action settlements in consumer protection law. These cases demonstrate the powerful impact of the statute's statutory damages provisions and the serious financial consequences that companies face for TCPA violations. Here are some notable examples:

• Capital One Bank ($75.5 million): In 2014, Capital One and three collection agencies agreed to pay $75.5 million to settle claims related to using an autodialer to call customers' cell phones without consent. This was one of the largest TCPA settlements at the time.
• Dish Network ($61 million): In 2017, Dish Network was ordered to pay $61 million after a jury found it liable for more than 55,000 telemarketing calls placed by a contractor to numbers on the National Do Not Call Registry.
• AT&T ($45 million): AT&T settled a class action in 2014 for $45 million over allegations that it made unauthorized calls to former customers' cell phones for debt collection purposes.
• Sirius XM ($35 million): In 2016, Sirius XM settled claims that it made telemarketing calls to potential customers who had not provided prior express consent and to numbers on the Do Not Call Registry.
• Wells Fargo ($30.4 million): Wells Fargo settled multiple TCPA class actions, including a $30.4 million settlement in 2016 related to autodialed calls and texts concerning banking and credit card accounts.
• Jiffy Lube ($47 million): A Jiffy Lube franchisee settled for up to $47 million in 2012 over unsolicited text messages advertising oil changes and other services.
• Caribbean Cruise Line ($76 million): In 2016, Caribbean Cruise Line and related companies agreed to a settlement valued between $56 million and $76 million for calls offering free cruises that were allegedly disguised as political surveys.
• Portfolio Recovery Associates ($18 million): This debt collector settled claims in 2011 that it made automated calls to cell phones without prior express consent while attempting to collect debts.

More recent notable settlements include:

• DIRECTV ($17 million): In 2021, DIRECTV settled allegations that its agents made telemarketing calls to numbers on the Do Not Call Registry.
• Navient ($19.7 million): The student loan servicer settled claims in 2020 that it placed autodialed calls to borrowers' cell phones without proper consent.
• TaxMasters ($20 million): The tax resolution firm settled claims related to unsolicited prerecorded telemarketing calls.

These settlements highlight not only the financial risks companies face for TCPA violations but also the variety of industries and contexts in which violations occur. From financial services to retail, healthcare, and telecommunications, businesses across sectors must be vigilant about compliance with telemarketing regulations or face potentially significant liability.

In addition to monetary compensation, many TCPA settlements include requirements for changes to business practices, such as implementing new consent procedures, improved training for employees, or enhanced compliance monitoring. These changes benefit all consumers by reducing future unwanted communications, even for those who weren't part of the original class action.

How to Join a Robocall Class Action

If you've received unwanted robocalls or spam text messages, you may be eligible to participate in a TCPA class action lawsuit. Here's how the process typically works:

1. Document the communications: Keep records of the unwanted calls or texts you receive, including: Date and time of the call or text The phone number that contacted you The content of the message (save screenshots of texts) Any company names mentioned during the call or in the text Whether you previously gave the company permission to contact you Whether you've asked them to stop contacting you
2. Automatic class membership: Unlike some other types of class actions, you don't need to take action to "join" a TCPA class action when it's first filed. If you fall within the definition of the class (typically people who received similar calls or texts from the same company during a specific time period), you are automatically considered a class member.
3. Class action notice: If a TCPA lawsuit settles, a notice will be distributed to potential class members. These notices may be sent via: Direct mail (if the company has your address) Email notification Text message (ironically, to the same number that received the violation) Media advertisements Settlement websites
4. Submitting a claim: To receive compensation from a settlement, you'll need to submit a claim form by the deadline specified in the notice. Most TCPA settlements allow claims to be submitted online through a settlement website. The claim form typically asks for: Your contact information The phone number that received the calls or texts Confirmation that you received communications from the defendant Sometimes, the approximate time period or number of communications received
5. Proof requirements: Many TCPA settlements have relatively minimal proof requirements, recognizing that most people don't keep detailed records of every call or text they receive. You may be able to make a claim based on your recollection, particularly if the company's records already show that your number was called.
6. Receiving payment: After claims are processed and the settlement receives final court approval, payments are distributed to eligible class members. This may take several months or even a year after the claims deadline.

Additional options to consider:

• Individual lawsuits: For particularly egregious or numerous violations, you might consider consulting with an attorney about filing an individual TCPA lawsuit rather than participating in a class action. Individual cases can potentially recover the full statutory damages ($500 to $1,500 per violation).
• Opting out: If you receive a class notice and prefer to pursue an individual lawsuit, you can opt out of the class by following the instructions in the notice.
• FCC complaints: In addition to participating in private litigation, you can file complaints about unwanted calls or texts with the FCC at fcc.gov/complaints. While this won't result in direct compensation, it may lead to regulatory action against repeat violators.

By participating in TCPA class actions, you not only recover compensation for the unwanted communications you've received but also contribute to the broader effort to reduce illegal robocalls and spam texts through financial deterrence.

Conclusion

Robocall and spam text class actions represent one of the most active areas of consumer protection litigation in the United States today. The TCPA's combination of clear prohibitions, statutory damages, and private right of action has made it a powerful tool for addressing the growing problem of unwanted automated communications.

While individual recoveries in these cases may be modest compared to the statutory damages available, the aggregate impact of TCPA litigation creates meaningful financial incentives for businesses to comply with telemarketing regulations. The substantial settlements reached in major cases demonstrate the serious consequences that companies face for violating these rules.

For consumers frustrated by the constant interruption of unwanted calls and texts, TCPA class actions offer a way to fight back and potentially recover compensation. By documenting unwanted communications, responding to class notices, and submitting claims in relevant settlements, you can exercise your rights under this important consumer protection law.

As technology continues to evolve, so too will the methods used to deliver unwanted communications—and the legal tools to combat them. By staying informed about your rights under the TCPA and participating in class actions when appropriate, you can help ensure that these important consumer protections remain effective in the digital age.