TCPA Text Spam Lawsuit Revived by Appeals Court

A federal appeals court this month revived a TCPA text spam class action lawsuit filed against Campbell-Ewald Co., a U.S. Navy contractor that allegedly sent recruitment messages to cellphone users without their consent.

The 9th U.S. Circuit Court of Appeals decided that both the contractor and the company paying for the services can be held liable for unsolicited text messages under for Telephone Consumer Privacy Act (TCPA).

This decision effectively reversed and remanded an earlier ruling by a California federal court that granted the ad agency Campbell-Ewald a motion for summary judgment, finding that the company had immunity concerning the claims brought against them by plaintiff Jose Gomez and the Class.

Campbell-Ewald claimed it could not be held liable for the text messages because they had contracted out the Navy recruitment messages to MindMatics LLC. While the U.S. Navy and Campbell-Ewald developed the multimedia recruitment campaign and crafted the text messages in question, the texts were dialed and sent by Mindmatics. In light of this, Campbell-Ewald argued it was not liable under TCPA law.

However, the 9th Circuit disagreed and stated that the ad agency could not claim immunity and was liable under TCPA, even if they contracted out the physical work of dialing and sending the text spams to a third party.

According to the 9th Circuit’s ruling on the TCPA class action lawsuit, “Although we have never expressly reached this question, several of our district courts have already concluded that the TCPA imposes vicarious liability where an agency relationship, as defined by federal common law, is established between the defendant and a third-party caller.”

This is a groundbreaking case in TCPA law standing as a reference point for future TCPA text spam class action lawsuit in which a company may try to avoid TCPA liability by using a third party contractor.

The TCPA Text Spam Class Action Lawsuit is Gomez v. Campbell-Ewald Co., Case No. 13-55486, in the 9th U.S. Circuit Court of Appeals.

What is The Telephone Consumer Protection Act (TCPA)?

Nearly two decades ago, Congress passed into law the Telephone Consumer Protection Act with the intent of limiting telephone soliciting and marketing, especially concerning telephone solicitations using automated dialing systems, otherwise known as robocalls. Automated dialing systems can call or texts hundreds to thousands of customers by accessing a stored list of home and cellphone numbers.

According to the Federal Communications Commission:

“The TCPA and the FCC’s rules ban many text messages sent to a mobile phone using an autodialer. These texts are banned unless (1) you previously gave consent to receive the message or (2) the message is sent for emergency purposes. This ban applies even if you have not placed your mobile phone number on the national Do-Not-Call list of numbers telemarketers must not call.”

Campbell-Ewald is not the only agency facing TCPA class action lawsuits for allegedly sending unsolicited text spam messages to consumers. Many consumers are filing TCPA lawsuits or joining TCPA class action lawsuits against business, restaurants, banks and other entities that have allegedly violated TCPA regulations.

Join a Free TCPA Class Action Lawsuit Investigation

If you were contacted on your cell phone by a company via an unsolicited text message (text spam) or prerecorded voice message (robocall), you may be eligible for compensation under the Telephone Consumer Protection Act.