Judge Rejects Best Buy ‘Reward Zone’ TCPA Class Action Settlement

On Feb. 26, 2014, a Washington federal judge rejected a proposed class action settlement over allegations that Best Buy Co. Inc. violated the Telephone Consumer Protection Act (TCPA).

The TCPA lawsuit was first filed in April 2010, when plaintiffs alleged that customers were automatically enrolled into Best Buy’s “Reward Zone Program” after making purchases. The rewards program provided customers with gift certificates that could be used to make purchases in any Best Buy store.

However, Best Buy allegedly altered the program to provide digital certificates instead of physical certificates and subsequently sent automated telephone calls to its customers to inform them of this change. Due to the fact that these calls used an automated dialing system and used an automated voice that responded when the recipient answered, the plaintiffs assert that the company violated the TCPA.

The class action lawsuit was first filed in April 2010, after Best Buy made the transition in their rewards program. Both parties had actually began negotiating for a settlement agreement in April 2013, and moved the proposal to court for preliminary approval. However, after reviewing the agreement terms, the judge did not feel that the consumers were adequately protected by the terms of the class action settlement. Finding that the settlement was unfair to the consumers, the judge rejected it and recommended the parties negotiate a different settlement amount.

The proposed class action settlement was worth $4.55 million dollars that was to be distributed among the affected consumers. According to court documents, the judge had several reasons to deny the TCPA settlement. The Court reasoned that each class member was only eligible to recover $50 to $100 per TCPA violation even though they might have been eligible for an award up to $1,500 in an individual lawsuit. Essentially, the Court reasoned that the Class Members would not have received the amount that they were entitled to, but would actually receive a much smaller amount. Therefore, the judge reasoned that the result of the settlement would be completely unfair to the consumers.

Overview of the TCPA

Under the TCPA, companies are prohibited from making automated calls, using automated dialing systems, using an artificial or prerecorded voice system, using an automated system to send spam text messages, and sending unsolicited messages through fax machines. Generally, representatives of companies who call the customers are required provide their name, contact information, and the company they work for, to provide proof that they are a real person. If the caller is human but fails to provide this information, it may be possible that the company he or she is working for is in violation of the TCPA. A company that unintentionally violates the TCPA may be fined $500 per violation. When the violation is intentional, the penalty can rise up to $1,500 per violation.

File a TCPA Claim Today

If you believe that you or a loved one have received a telephone communication in violation of the TCPA, you have legal options. Please visit the Text Message Spam, Unwanted Cell Phone Calls TCPA Class Action Lawsuit Investigation. There, you can submit your claim for a free legal review and if it qualifies for legal action, a seasoned TCPA lawyer will contact you for a free, no-obligation consultation. You will be guided through the litigation process at no out-of-pocket expenses or hidden fees.  The TCPA attorneys working this investigation do not get paid until you do.