Dismissal of Yahoo Text Spam Class Action Lawsuit Appealed

The Third Circuit of the U.S. Court of Appeals heard arguments made by the plaintiffs of the Yahoo text spam class action lawsuit claiming a federal judge was wrong in dismissing the lawsuit.

The class counsel further claims that the federal court wrongly concluded that the unsolicited text messages sent to the plaintiff did not qualify as computerized, unsolicited phone calls under the definition set by the Telephone Consumer Protection Act.

Plaintiff Bill Dominguez, a resident of Philadelphia, alleges he received 27,000 text messages (or text spam) stemming from a Yahoo email forwarding service. According to the Yahoo TCPA class action lawsuit, “This system is exactly the type of thing that Congress meant to regulate: an automated, harassing system that can’t be stopped. This is precisely the type of automated harassment that was meant to be covered.”

In March, U.S. District Judge Michael Baylson ruled in favor of Yahoo stating that the plaintiffs did not provide evidence that Yahoo opt-in text service would qualify as a type of automatic telephone dialing system (ATDS) prohibited by the TCPA.

Dominguez, who filed this Yahoo text spam class action lawsuit in April 2013, alleges he purchased a new cellphone that had a recycled cell phone number. After his purchase, Dominguez allegedly began to receive texts sent by Yahoo to alert the cellphone user that he had received a new email, even though the plaintiff claims he does not have a Yahoo email account.

According to the Yahoo TCPA class action lawsuit, the previous owner of Dominguez’s cell phone number had sign up for the Yahoo text message email alert service to receive updates on his cell phone. However, Yahoo claims that the company discontinued this text message service in 2011 after the rise in popularity of the smartphone email apps.

In dismissing the Yahoo text spam class action lawsuit, Judge Baylson stated Dominguez had not proven that Yahoo’s text message system could randomly or sequentially generate cell phone numbers as required by the TCPA. However, Dominguez and this counsel fired back, stating:

“The question is, in terms of ‘generate,’ does the system have to generate the number out of thin air? And the answer is no. All of the technology today that sends texts uses numbers that come from either a list or come from some other source, they’re not creating numbers out of thin air.”

In supporting his argument, Dominguez pointed to the FCC’s decision that an ATDS will include all systems that have the capacity to store and dial numbers without human intervention, according to the governments definition of the term.

The Third Circuit has not yet made a decision on the TCPA class action lawsuit appeal.

The Yahoo Text Spam Class Action Lawsuit is Bill Dominguez v. Yahoo Inc., Case No. 14-1751, before the U.S. Court of Appeals for the Third Circuit.

What is The Telephone Consumer Protection Act (TCPA)?

About two decades ago, the U.S. Congress passed the TCPA into law with the intent of limiting telephone soliciting by companies and telemarketers. This set of laws especially pays close attention to the use of ATDS to make robocalls.

Regarding text messages or text spam, to the Federal Communications Commission says:

“The TCPA and the FCC’s rules ban many text messages sent to a mobile phone using an autodialer. These texts are banned unless (1) you previously gave consent to receive the message or (2) the message is sent for emergency purposes. This ban applies even if you have not placed your mobile phone number on the national Do-Not-Call list of numbers telemarketers must not call.”

Yahoo is not the only company accused of TCPA violations for allegedly sending unsolicited text-spam messages to consumers. Many busineses that allegedly employ automated dialers to call or text consumers without their expressed consent are facing potential TCPA class action lawsuits or individual TCPA text spam lawsuits.

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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