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Redbox Wants Text Message Class Action Lawsuit Dismissed
By Jessica Tyner
UPDATE: A federal judge dismissed the Redbox Text Message Class Action Lawsuit on June 20, 2013.
The Telephone Consumer Protection Act (TCPA) was put into effect in 1991. The law protects consumers against getting sales calls they never signed up for, but as technology has changed, so has TCPA rules. It’s now illegal for a business to send a text message unless the consumer has signed up for services or requested to be contacted. That’s why you’re not getting endless text messages from companies wanting you to buy everything from massage services to guitars.
However, one company isn’t taking this restriction lying down. You’ve probably seen Redbox stations around town — they’re common in McDonald’s and Safeway, to name a few hot spots. According to the company, their right to send text messages to consumers is protected by the First Amendment. A spokesperson for Redbox claims the company should be allowed to send a confirmation to a subscriber when they opt out of services. Some legal experts disagree, and it looks like Redbox might be headed to a class action lawsuit over the matter.
Redbox’s Text Message Argument
Some people say that Redbox’s argument makes sense. After all, TCPA rules are to prevent sales calls or texts from being made, and that’s not what Redbox is doing. The company is simply confirming that a person is no longer subscribed. The main reason Redbox is getting in trouble is because the opt-out confirmation is automated. Oftentimes, automated texts are automatically considered a TCPA violation.
Kathleen Holt first started a Redbox TCPA class action lawsuit in late 2011. She was one of many subscribers who received an opt-out confirmation via text. According to Holt, she never agreed to receive text messages from Redbox in the first place. Even after she asked them to stop sending the texts by opting out, she didn’t want to receive a text — even if it was a confirmation. There are hundreds of other similar complaints lodged against Redbox, all leading to a massive class action lawsuit.
Department of Justice Sides with Consumers
In April 2013, the Department of Justice denied Redbox’s claim that their First Amendment rights were being violated by not allowing the company to send a confirmation text. According to the DOJ, Redbox isn’t bringing anything new to the table. Many defendants in TCPA lawsuits claim that their texts aren’t selling services, but that doesn’t hold up when opt-out messages clearly go against a person’s request to stop being contacted.
There’s also a big discrepancy in Holt’s case because she claims the text message also featured an invitation to visit a website to get more services. Redbox denied that allegation, but it will be easy enough to prove in court. Redbox is also hiding behind a late 2012 statement by the Federal Trade Commission (FCC) stating that opt-out messages don’t violate TCPA law. According to the company, opt-out automated text messages are the least invasive way to let consumers know they won’t be bothered anymore.
Have You Received an Unwanted Text Message?
Many companies violate TCPA rules, and there’s a good chance you’ve received a text message or two that you never signed up for. If this is the case, you may be eligible for a TCPA legal claim. Under federal law, each unwanted outreach attempt warrants a fine of $500 or $1,500 paid to the victim.
Learn more about your rights at the Text Message Spam, Cell Phone Call TCPA Class Action Lawsuit Settlement Investigation. You’ll have the opportunity to submit your information for a free legal review to see if you have a case.
Updated June 21st, 2013
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
