Telephone Consumer Protection Act (TCPA)

Signed into law in 1991, the Telephone Consumer Protection Act (TCPA) is an outdated consumer protection statute restricting telemarketing calls, junk faxes and the use of automated telephone equipment. Much has changed since 1991. While the wireless marketplace and consumer use of this technology has rapidly evolved in the last twenty years, the TCPA has not. Plaintiffs’ lawyers are now exploiting the law’s outdated language and using conflicting federal court rulings to bring abusive and costly class action lawsuits against businesses. Reform is needed to clarify interpretation of the law and to protect businesses from these lawsuits. read more...



The TCPA allows consumers to sue companies for statutory damages of $500-$1,500 (depending on if the violation was willful) for each prerecorded call, specified autodialed call and unsolicited facsimile they did not consent to receive. At the time the TCPA was created, its sponsor, Senator Ernest “Fritz” Hollings (D-SC), explained the law was intended to facilitate actions in state small claims courts, which involve smaller sums and often do not require (or even allow) the participation of attorneys.

Today, however, TCPA cases are anything but small. Trial lawyers have used the law to file large class action lawsuits. The defendants in these cases are no longer just abusive telemarketers; they are businesses, big and small alike, forced to choose between settling the case or spending significant money defending an action where the alleged statutory damages may be in the millions or billions of dollars. Further, many of these companies are being sued for reasons outside of their control, such as dialing a number provided by a customer that was later reassigned to another party, or because an unaffiliated third party mentioned their products via phone call or text in an advertisement sent to consumers. One wrong call can be the basis of a class action lawsuit alleging millions of dollars in statutory damages and seeking discovery into every single call placed by that company to its customers going back four years. The risks of financial and reputational ruin strong-arms businesses into entering sometimes massive settlements even where there is no evidence of wrongdoing.

The growing trend of TCPA litigation already has caused many companies to consider discontinuing the provision of helpful information to customers, such as prescription availability, credit card fraud alerts or airline changes or cancellations.

Modernization of the TCPA is critical to resolving these issues. Businesses should not be faced with an untenable decision: whether to curtail communications with their customers because of the severe risk of class action litigation caused by the manipulation of an out-of-date statute by plaintiff attorneys.

Research

ILR Research Review - Fall 2017

November 30, 2017 | This special double-issue of the ILR Research Review features a wealth of insight and analysis on the world's rapidly changing litigation environment. The research contained in this issue targets exploitative litigation at home and abroad, examining numerous developments ranging from hyper-aggressive trial lawyer advertising in the U.S. to the imminent expansion of class actions in Europe.

TCPA Litigation Sprawl: A Study of the Sources and Targets of Recent TCPA Lawsuits

August 31, 2017 | TCPA Litigation Sprawl is a macro-level analysis of Telephone Consumer Protection Act (TCPA) litigation that reviews all TCPA federal complaints and a segment of electronically-available state complaints from a 17-month period after the Federal Communications Commission's (FCC) issued its July 2015 Omnibus Declaratory Ruling.

Additional Resources

All Results for Telephone Consumer Protection Act (TCPA)

Insurers, Particularly Start-Ups, At Risk Under "Expanding TCPA Scope"

December 07, 2017 | News and Blog

Insurers, particularly start-up agencies "who need to do everything they can to attract customers," are at greater risk of being sued under the "expanding TCPA scope," writes Insurance News Net. Read More »

In the News Today - December 5, 2017

December 05, 2017 | News and Blog

Bipartisan Group of Congress Members Ask FCC for New TCPA Clarifications; California self-driving rule tweaks boost manufacturer liability Read More »

ILR Research Review - Fall 2017

November 30, 2017 | Research

This special double-issue of the ILR Research Review features a wealth of insight and analysis on the world's rapidly changing litigation environment. The research contained in this issue targets exploitative litigation at home and abroad, examining numerous developments ranging from hyper-aggressive trial lawyer advertising in the U.S. to the imminent expansion of class actions in Europe. Read More »

In the News Today - November 30, 2017

November 30, 2017 | News and Blog

Judge Nixes TCPA Class Action Because Plaintiff Never Texted 'STOP'; Dinner Reservation Text Promoting Specials Isn't Advertising; "The Law is What it Says" Read More »

In the News Today - November 28, 2017

November 28, 2017 | News and Blog

TCPA Plaintiff On Track for Huge Payday; Supreme Court to Weigh Curbing State Securities Class Actions Read More »

In the News Today - November 27, 2017

November 27, 2017 | News and Blog

Federal Judge Dismisses TCPA Case, Says 'Clicker Agent' Invalidated Robocall Claims; More Firms Reach Arrangements With Major Litigation Funders Read More »

In the News Today - November 2, 2017

November 02, 2017 | News and Blog

Phoney Lawsuits: Man Has Filed 80 Lawsuits And Uses Sleuthing Skills To Track Down Defendants Read More »

"Tsunami" of TCPA Lawsuits Spreading Across the Country, says Pennsylvania Attorney

November 01, 2017 | News and Blog

Pointing to a California law firm's use of a Philadelphia office to find new Telephone Consumer Protection Act (TCPA) plaintiffs, a Philadelphia attorney told the Pennsylvania Record that there is a "tsunami of TCPA actions, no question." Read More »

In the News Today - October 20, 2017

October 20, 2017 | News and Blog

'The way due process is supposed to work': IL Sup Ct decision reshapes Cook County's legal landscape; Ace Insurance Gets Nod For $9.8M TCPA Class Settlement Read More »

The TCPA One Year Later

October 19, 2017 | News and Blog

A Chicago Cubs World Series championship. President Trump's election win. The Dow reaching 23,000 points. These are three events that may seem to have occurred an eternity ago - but really only happened within the past twelve months. They're also all things that have occurred since October 19, 2016 - the date oral arguments were heard in the D.C. Circuit challenging the Federal Communications Commission's 2015 Omnibus Telephone Consumer Protection Act (TCPA) Declaratory Ruling. Read More »

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