Appeals Court Denies Yahoo’s Appeal Bid in ‘Welcome Text’ TCPA Lawsuit

The Seventh Circuit Court of Appeals recently denied Yahoo’s appeal of a decision to to certify a class action lawsuit against Yahoo for sending unsolicited text messages.

At the trial court level, plaintiff Rachel Johnson of Illinois as the class representative for Sprint customers who received ‘welcome messages’ without consent.

Business who send consumers text messages without prior consent are in violation of the Telephone Consumer Protection Act (TCPA) and consumers can seek monetary damages against these companies.

According the Yahoo TCPA class action lawsuit, Rachel was never a Yahoo user and never agreed to yahoo’s terms of services. She alleges that she began receiving messages from yahoo after applying for online loan services.

According to the Yahoo TCPA class action lawsuit, Yahoo’s SMS messenger service allows computer users to send SMS text messages from a computer to a cellular phone. When a message is sent through the Yahoo Messenger Service, Yahoo checks to see whether the message recipient has ever received a message using their service before. If the recipient has not received a message from Yahoo SMS an automated welcome message is sent with the user’s text.

According to Yahoo, the welcome messages serve purely an informational purpose and are not intended to advertise are be used for telemarketing purposes. Yahoo claims that the message is sent to alert the recipient that the sender is using Yahoo Messenger’s free PC2SMS service.  Because the service is allegedly intended for informational purposes, Yahoo argues that the company has not violated the TCPA.

The federal judge disagreed and felt the issue should be sent to a jury.  According to the judge, Yahoo failed to present specific evidence that consumers, like Rachel, had agreed to Yahoo’s welcome messages by downloading and using one of its apps.

The Yahoo TCPA Class Action Lawsuit is Yahoo! Inc. v. Rachel Johnson, et al., Case No. 16-8001 in the U.S. Court of Appeals for the Seventh Circuit.

Telephone Consumer Protection Act

The TCPA was enacted by congress back in 1991for the purpose of protecting consumer rights.  The Act restricts companies use of various forms of communication in relation to consumer contact.

One type of communication the Act restricts is automatic dialing systems. The law prohibits these systems from making calls to consumer cellphones unless the company has received the prior consent of the consumer.

This restriction applies to both phone calls and text messages.  In 2015 the FCC declared that equipment that sends internet to phone text messages can be classified as an auto dialer under the TCPA.

Violations of the TCPA carry statutory damages. The TCPA provides for a $500 fine for each negligent violation.  If the consumer can prove that a company willfully or knowingly violated the TCPA the fine is increased to $1500 per violation.  These fines can add up quickly for companies especially in a case where a class action lawsuit has been filed.

TCPA Lawsuits

Consumers who have received phone calls or text messages from companies without having granted prior consent to receive the communication may be able to bring a TCPA lawsuit.  A legal professional can help potential plaintiffs decide whether or not bringing a TCPA lawsuit is right for them.

This decision should be made after a careful consideration of all the facts and circumstances.  Lawsuits like these also help to hold companies accountable for their actions and help to reinforce consumer rights.

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.

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