Hooters Will Pay $1.3M To Settle Unwanted Texts Class Action

Hooters of America LLC agreed to settle class action claims that it sent consumers unwanted text messages for $1.3 million in gift cards.

Lead plaintiff Michael Etzel alleged in his class action lawsuit that the restaurant chain violated the Telephone Consumer Protection Act (TCPA) by sending unwanted text messages to Class Members’ cell phones without permission.

The TCPA protects consumers from telemarketers and other types of solicitors who do not have permission to contact them. Fines for TCPA violations can range from $500 to $1,500 per call or text.

Etzel alleged in his class action lawsuit filed in April of 2015 that he and other consumers received the following text message from Hooters after attempting to opt-out of the restaurant’s cell phone marketing scheme:

“Hooters Fans: Our mClub has moved! Don’t worry, you’ll still receive exclusive news, just from a new number. Reply STOP to unsubscribe Msg&Data Rates may apply.”

According to the plaintiff’s motion for preliminary approval of the settlement agreement, Hooters has agreed to fund nearly $1.3 million in gift cards to end the litigation. The plaintiff says that Class Members will be awarded either $50 or $20 in gift cards redeemable at Hooters depending on their tier level.

Tier one Class Members include Hooter’s customers who opted out of receiving text messages from the restaurant, but still received unwanted messages. Tier two Class Members are those that were subject to an opt out message after Oct. 16, 2013, when the Federal Communication Commission ruled that companies must obtain prior written consent before using marketing calls or text messages.

Additionally, Hooters will “be forever enjoined from sending a text message to the Class Members, without having received an express written consent for such contact provided after the date of this Settlement Agreement,” according to the class action plaintiff’s motion.

“The Proposed Settlement is the result of extensive good faith negotiations, after thorough factual investigation and legal analysis, and are, in the opinion of Plaintiff’s Counsel, who are experienced in these matters, fair, reasonable, and adequate,” says the class action plaintiff’s motion for preliminary approval of the settlement.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The lead plaintiff and proposed Class are represented by W. Pitts Carr and Alex D. Weatherby of Carr & Weatherby LLP, Nicholas P. Panayotopoulos and Nancy F. Rigby of Weinberg Wheeler Hudgins Gunn & Dial LLC, and David Ghattas of the Law Office of David Ghattas.

The Hooters TCPA Class Action Lawsuit is Michael Etzel v. Hooters of America LLC, Case No. 1:15-cv-01055-LMM, in the U.S. District Court for the Northern District of Georgia, Atlanta Division.

UPDATE: September 2017, the Hooters text message spam class action settlement is now open. Click here to file a claim.

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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.

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