Telephone Consumer Protection Act (TCPA)

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The Telephone Consumer Protection Act (TCPA) was signed into law in 1991 to curb the increase in unregulated and harassing telemarketing calls and faxes. The TCPA also restricted the use of auto dialers and pre-recorded voice messages, and required customer consent. However, in 1991 cellphones resembled bricks, and lacked most modern abilities including text messaging. Since then, technology has rapidly evolved in the wireless marketplace, leaving the TCPA very outdated. Read More...

In the past few years, plaintiffs’ lawyers have exploited the law’s outdated language to bring abusive and costly class action lawsuits against a multitude of businesses. Rather than going after bad actor spammers and scam artists, the trial bar instead sues legitimate businesses and forces them to defend themselves in actions where the alleged aggregate statutory damages may be in the billions of dollars (and a sizeable fee award going to the plaintiffs’ lawyer). Further, many of these companies are sued for reasons outside of their control, such as a third party mentioning their products via a phone call or a text message advertisement.

The Federal Communications Commission (FCC) is implementing a comprehensive reassigned phone number database that will enable companies to verify whether a phone number has been permanently disconnected and is eligible to be reassigned. It also wisely states that the caller is not liable if there is a database error, such as the omission of a disconnected number. This will help prevent plaintiff lawyers from filing frivolous lawsuits that hurt American businesses at no fault of their own.

While the reassigned number database is an important step in the right direction, additional work still needs to be done. The Institute for Legal Reform is continuing to call on Congress and the FCC to clarify the TCPA and specify what equipment and practices fall within the law’s scope as well as work to modernize the statute in order to protect businesses from the frivolous lawsuits being filed under this outdated law. Exacerbating this problem are the multiple conflicting court decisions about what falls within the purview of the TCPA and the types of equipment that callers may or may not use.

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Suggested Resources

Research
  • ILR Briefly COVID-19 Series: Federal Liability Problems and Solutions

    ILR Briefly COVID-19 Series: Federal Liability Problems and Solutions

    May 07, 2020

    As the public health and economic consequences of COVID-19 continue to mount, plaintiffs' lawyers are looking for ways to expand upon their legal theories and bring opportunistic litigation. This edition of ILR Briefly explores four projected hot spots of COVID-19 litigation: exposure liability, product liability, medical malpractice, and securities litigation. The paper goes on to recommend targeted federal legislative and administrative solutions to combat abusive lawsuits in these areas and protect the economic recovery. Read More

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

    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. Read More

All Results for Telephone Consumer Protection Act (TCPA)

  1. The Juggernaut of TCPA Litigation: The Problems with Uncapped Statutory Damages

    October 23, 2013 | Research

    Companies that communicate with their customers for any legitimate reason (marketing, collections, or transactional) have been discovering in recent years that if they reach out to customers via call, text, or fax, they are at risk for being sued under the Telephone Consumer Protection Act (TCPA) by a plaintiff claiming that the communication was not made with his or her consent.... Read More

  2. Serial plaintiff caught on tape describing how to take advantage of TCPA

    December 31, 1969 | News

    Recorded conversations prove that a Pennsylvania man who has filed dozens of lawsuits is intentionally taking advantage of a federal law to extort settlements from defendants, according to a report in the Pennsylvania Record.... Read More