Papa John’s Drops Text Spam Lawsuit Appeal

A year after pizza chain Papa John’s settled the last of two text spam lawsuits accusing the company of violating the Telephone Consumer Protection Act by sending illegal text messages to some 500,000 customers, Papa John’s abandoned its appeal of a federal court decision letting two insurers off the hook from having to pay to defend the company.

In May 2013, Papa John’s agreed to pay more than $16 million to settle a national TCPA class action lawsuit for blasting customers’ cell phones with text messages about pizza specials. The text spam class action settlement called for nearly $3 million worth of free pizza vouchers and $11 million in cash awards to Class Members.

As a result of the text spam class action settlements, the Cincinnati-based 6th U.S. Circuit Court of Appeals dismissed Papa John’s appeals against National Union Fire Insurance Co. and American Home Insurance Co.

National Union and American Home filed lawsuits against Papa John’s after plaintiffs in Washington and Virginia filed TCPA lawsuits against the pizza chain over spamming hundreds of thousands of text messages to cell phones to consumers who allegedly never gave their consent to receive them.

The text spam lawsuits alleged that marketing company OnTime4U, on behalf of Papa John’s franchisees who provided the marketing company with customer lists that included cell phone numbers, sent the texts advertising Papa John’s products. At least one of the TCPA lawsuits accused the pizza company of knowing the texts violated federal law (based on an internal memo) but encouraged the franchisees to send them anyway.

Plaintiff Erin Church said that after she ordered from Papa John’s, her cell phone blew up with text messages about Papa John’s pizza specials. The TCPA class action lawsuit sought $250 million in damages. Papa John’s ultimately agreed to pay $16.5 million, awarding Class Members $50 in damages and a free, large one-topping pizza.

The TCPA became law in 1991. It carries a $500 fine for each violation. Each cell phone user who proves an intentional violation can sue for $1,500 for each unlawful message.

Provisions of the law prohibit solicitations to residences before 8 a.m. or after 9 p.m. Solicitors are required to provide their name as well as the name of the company they are calling for in addition to a telephone number or address where the company can be contacted. Solicitors must also maintain a company-specific do-not-call list which is to be honored for five years.

Under the TCPA, using autodialing equipment to send calls to wireless phones without the prior consent of the cellphone user is prohibited. Text messages, under the law, are considered the equivalent of telephone calls.

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.

Get a Free Case Evaluation Now

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.

Get a Free Case Evaluation Now