Car dealership TCPA telemarketing class action lawsuit investigation

Car dealership spam texts: Who’s affected?

Did you send an opt-out text to a car dealership after receiving a telemarketing text? Did you continue to receive telemarketing texts even after opting out?

Consumers have filed TCPA class action lawsuits against numerous car dealerships. Mercedes-Benz, Hyundai, Chevrolet and other dealership locations around the country face claims that they violated federal law by sending unsolicited spam text messages and calls to consumers advertising their services and promotions without first getting consent.

Numerous dealerships resolved TCPA allegations against them with dealership telemarketing settlements. For example, in 2022, Nissan agreed to pay $2.2 million to resolve allegations that it violated TCPA with robocalls.

What is TCPA?

Congress passed the Telephone Consumer Protection Act (TCPA) in 1991 to protect Americans from harassing telemarketing phone calls. In 2003, the Federal Communications Commission (FCC) partnered with the Federal Trade Commission (FTC) to implement the national Do Not Call Registry under TCPA violations. The Do Not Call Registry allows consumers to register their phone numbers and indicate they do not want to receive any telemarketing communications from any telemarketers.

In 2012, the FCC further expanded TCPA to require businesses to obtain express prior written consent before contacting consumers with robocalls. Under these new rules, businesses cannot justify telemarketing calls and texts with an “established business relationship.” The FCC also added a rule which requires businesses to include an opt-out mechanism in their robocalls so consumers can instantly indicate that they do not want to receive any further calls.

Although TCPA initially covered only phone calls, it has since been expanded to include text messages and faxes.

If businesses such as car dealerships fail to comply with TCPA, they could be ordered to pay between $500 and $1,500 per violation if consumers take legal action and win at trial. When companies send hundreds or even thousands of text messages in bulk, these damages can add up quickly.

Have class action lawsuits been filed over car dealership spam texts?

After receiving unsolicited spam texts from dealerships, some consumers took legal action.

In 2020, Mercedes-Benz of Los Angeles was hit with a class action lawsuit claiming that the company sent unwanted text messages advertising its services. The plaintiff in the case says that she received multiple car dealership spam texts despite repeatedly asking for them to stop.

In the same year, a consumer filed a TCPA class action lawsuit against two related car dealerships, arguing that the dealerships’ owner used an automatic telephone dialing system to bombard him with spam calls. These robocalls allegedly incurred charges on the plaintiffs’ phone service, causing financial damage on top of annoyance and inconvenience.

How much are dealership telemarketing settlements?

Car dealerships may choose to resolve telemarketing class action lawsuits with a settlement instead of risking a larger verdict at trial.

In 2022, Nissan agreed to a $2.2 million class action settlement to resolve claims that it contacted consumers with illegal robocalls regarding auto financing accounts. A group of Oklahoma dealerships reached a settlement of $850,000 in 2020 to resolve claims that they messaged consumers with illegal dealership spam texts. In 2019, a Florida Ford dealership agreed to pay $4.8 million to resolve TCPA claims that the harassed consumers with text messages and phone calls.

Although settlements often result in damages below the minimum $500 allowed under TCPA, these agreements are often an effective way for both parties to resolve litigation without the time, costs and risks of trials.

Join a car dealership telemarketing class action lawsuit investigation

TCPA prohibits unsolicited texts, calls and faxes. Consumers who received dealership spam texts may be able to take legal action.

If you received unsolicited dealership spam texts, you may qualify to participate in this car dealership telemarketing class action lawsuit investigation.

Fill out the form on this page to see if you qualify for a FREE case evaluation.