Tuesday, March 12, 2019

NHL Team Facing TCPA Lawsuit

The NHL's Tampa Bay Lightning are facing a TCPA lawsuit over alleged texting violations. According to the complaint, the team used, "['bait and switch'] tactics to convince fans to sign up to enter into prize sweepstakes or otherwise to receive purely informational texts. Once Defendant obtains access to its fans’ cellular telephone numbers, however, Defendant enrolled the consumer into its text message marketing campaign which floods the recipient with nearly daily advertising and telemarketing text messages." Read a copy of the complaint here. If your business sends marketing text messages to consumers, ensure that you have the right levels of consent in order to mitigate the risk of facing litigation like this. Learn how to defend a TCPA lawsuit. However, mitigate your risk of telemarketing lawsuit defense or telemarketing fines by following all telemarketing rules. Make sure you have the proper telemarketing licenses and telemarketing bonds. Contact a telemarketing law firm to determine which telemarketing regulations you need to follow.


All 50 Attorneys General Announce Support of TRACED Act

A letter was sent to the U.S. Senate Committee on Commerce, Science, & Transportation by all 50 state attorneys general announcing their support of the TRACED Act. Read the full letter here. As a reminder, the TRACED Act would do the following:
  • Require that telephone service providers implement "an appropriate and effective call authentication framework in the internet protocol networks of voice service providers." 
  • Require the FCC to initiate a rule-making initiative to help protect a subscriber from receiving "unwanted calls or texts messages from a caller using an unauthenticated number."
  • Creates an inter-agency working group to study government prosecution of telemarketing violations. The group would include representatives from the Department of Justice, Department of Commerce, Department of State, Department of Homeland Security, FCC, FTC, and CFPB.
  • Authorize the FCC to impose a fine of up to $10,000 against businesses or individuals that violate the TRACED Act. The FCC already has authority under the TCPA to impose fines of up to $16,000, so this new authority would be giving the agency a second umbrella under which they could impose fines. 
There is a good chance that this bill will pass. The bill does give the FCC more teeth to enforce telemarketing regulations, but it does not impose any new rules for telemarketing businesses. Businesses that are in full compliance with the TCPA have little need to worry about this.
Learn more about robocall laws and autodialer laws. Make sure you understand dnc compliance and cell phone telemarketing laws as well.

Operators of Alleged Sweepstakes Scam to Settle FTC Charges for $30 Million


A business that allegedly targeted senior citizens in a sweepstakes scam has agreed to pay the FTC a $30 million settlement. They have also been banned from participating in any future prize-promotion business. According the the FTC, the defendants, "tricked millions of people—many of them older adults—into paying money to collect prizes that never materialized." Read the FTC's press release here. Be especially cautious when marketing to senior citizens. You should strongly consider having unique policies in place to reduce complaints from seniors, as regulators will generally take them more seriously than others.

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