PayPal Asks Judge to Dismiss Text Message Class Action Lawsuit
By Kimberly Mirando
PayPal Inc. was in court yesterday urging a California federal judge to dismiss a class action lawsuit accusing the site of illegally sending users unsolicited text messages, arguing it didn’t break the law because these users voluntarily gave PayPal their cellphone numbers.
The case – David Roberts v. PayPal Inc. – was filed in February 2012 by a California consumer who claims PayPal violated the federal Telephone Consumer Protection Act (TCPA) by sending him unwanted text messages welcoming him to PayPal Mobile Services and directing him to a website address to learn more.
Roberts claims that since he didn’t invite PayPal to send the text message that the company violated the TCPA, which prohibits companies from contacting consumers on their cellphones using an automated dialing machine or pre-recorded message without express prior permission.
PayPal argued yesterday that when users provide the company with their cellphone number that they’re giving PayPal “express consent” to contact them via text message. PayPal’s attorney further argued that Roberts is barred from claiming these messages violated the TCPA based a previous ruling in Meyer v. Portfolio Recovery Associates that found providing a telephone number is the same thing as consenting to be contacted on that number.
“Wouldn’t it be safe to assume if people give their cellphone number, they’re anticipating calls on that number? Why would someone give a number if they don’t expect it to be used?” U.S. District Judge Phyllis Hamilton asked Robert’s attorney.
Robert’s lawyer answered that the user agreement for PayPal Mobile Services did not mention anything about text messages being sent. Depending on a person’s wireless carrier plan, each text message received can cost the user money.
He also told Judge Hamilton that PayPal’s attempt to use Meyer v. Portfolio Recovery Associates to dismiss the case doesn’t hold up because it relied on a nearly 20-year-old FCC ruling that only covers home telephone numbers – before cellphones were even invented
“If there’s a non-soliciting call to his home number, that’s not a violation of the TCPA. But those rules don’t apply to cellphones,” Robert’s attorney said. “It’s wrong that obtaining a cellphone number alone is enough to show that PayPal got clear and unmistakable permission.”
Hamilton said she will issue a written order with her decision in the matter, but did not indicate which way she would rule. If she agrees with PayPal’s argument that simply providing a cellphone number is the same as providing consent to receive text messages, it could be a devastating blow to consumers seeking to hold companies liable for TCPA violations.
The case is Roberts v. PayPal Inc., Case No. 12-cv-00622, U.S. District Court for the Northern District of California.
Did you receive an unsolicited text message or cellphone call from a company? You may have a legal claim under the Telephone Consumer Protection Act. Violating the TCPA is a serious matter and can carry penalties of between $500 and $1,500 per violation. Get a free legal review of your claim at the TCPA Class Action Lawsuit Investigation.
Updated April 25th, 2013
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