Is spam texting by car dealerships illegal?

Spam texting from a car dealership may be illegal if the dealership doesn’t get consumer consent before sending messages.

What is a spam text?

Spam texts may refer to text messages sent on behalf of a business. Some of these text messages are sent from “short codes” or are seemingly sent out using an automatic dialing system.

In some cases, it can be hard to get rid of these text messages. Businesses may offer opt-out options within the message, but in other cases, consumers may be required to block the number to stop the texts. This may not even be a perfect solution because businesses may use multiple numbers to send spam texts.

Why are spam texts dangerous?

Similar to phishing emails, some spam texts may contain deceptive links. When an unsuspecting consumer follows these links, they may pick up malware that can steal their personal information.

If consumers get malware on their phones, hackers may be able to access how much money they make, how much money they owe, bank account information, credit card numbers, social security numbers, and other information that could assist in fraud or identity theft. Even if the hacker themselves is not aiming to steal consumer identities, they can easily sell information to criminals on the dark web.

Even when spam texts don’t expose the phone to malware, they still can be annoying and take up consumer time and energy.

Is spam texting illegal?

In some cases, spam texting is illegal. If businesses do not have a consumer’s consent to call them or send text messages, these communications may violate the Telephone Consumer Protection Act (TCPA).

TPCA was passed by Congress in 1991 to help protect consumers from harassing, annoying calls that invaded their privacy and caused a nuisance. Since then, the law has been expanded to include additional protections. Behaviors prohibited under TCPA include:

• Placing robocalls (using an automated dialing machine and/or pre-recorded message);
• Sending unsolicited text messages;
• Calling or texting people who never established a business relationship with the company;
• Not providing an option to opt out of the calls/texts;
• Calling numbers listed on the National Do Not Call Registry or on company-specific “do-not-call” lists; and
• Sending unsolicited advertisements to any fax machine — both businesses and residences — without the recipient’s prior express invitation or permission (i.e., junk faxes)

How can I stop spam texts?

Numbers that send spam messages can be blocked by phone users and spam numbers can be reported. In some cases, individuals can contact the business or entity sending the texts to be taken off of the call list.

In addition to asking companies to put their numbers on a do not call list, consumers may be able to register their number of the similar, nation-wide registry known as the National Do Not Call Registry.

The Do Not Call Registry was established by the Federal Communication Commission (FCC) in partnership with the Federal Trade Commission (FTC). Individuals who place their numbers on the registry notify marketers that they do not want to receive telemarketing calls or messages, like those from car dealerships. All businesses are required to follow consumers’ wishes within 31 days of registering their number on the list.

Registration on the list never expires and is available for both landlines and cell phones. To register, consumers can call 1-888-382-1222 with the number they wish to register or go online to the Do Not Call Registry website.

Unfortunately, even the FTC notes that placing a number on the do not call list will not stop all unwanted calls. The agency attributes this to spam callers, noting that the registry only stops “sales calls from real companies.” Scammers who ignore the registry may still contact consumers even if they put their number on the list.

If spammers continue to contact a phone number after it has been put on the national Do Not Call List, the FTC notes that consumers can also use spam text and call filters. Cellular providers such as Verizon offer premium paid services that enhance caller ID capabilities and allow users to filter spam texts. There are also third-party apps that offer the same service.

Consumers, however, may still be struggling with spam texts after taking these preventative measures.

Have any car dealerships faced a TCPA lawsuit?

Numerous TCPA lawsuits have been brought against car dealerships for spam texts. Automotive News reported that in 2017, a Clearwater, Fla. Volkswagen dealership was sued for sending unsolicited text messages to owners with open recalls after a woman who had not visited the dealership in more than 10 years received “an unsolicited text on her cellphone to schedule an appointment for an unrepaired 2007 recall.”

An Oregon car dealership agreed to a $2.5 million settlement related to a class action lawsuit accusing the dealership of sending more than 100,000 unsolicited text messages. The dealership’s third-party text vendor paid the settlement.

And a West Palm Beach, Fla. dealership agreed to pay $5 million to settle a class action lawsuit accusing the dealership of sending more than 58,000 unsolicited marketing text messages. According to the Daily Business Review, the texts were sent by a third-party vendor after an employee gave the dealership’s customer list to the texting company, CallFire. The employee reportedly did not have the knowledge or permission of upper management, who terminated the man’s employment.

Why have I been receiving so many spam text messages compared to previous years?

Sending spam to a cell phone used to be taboo because the recipient would be charged for receiving the text message, or the text message would count toward the recipient’s cell phone’s plan limit. Today’s cell phone plans almost always include unlimited text messaging, which made text spammers very happy.

Marketers also have become savvier. If you have ever gone to a concert and seen a message flash on a big screen saying to text a word to a number to try to win better concert seats or a visit backstage, you have probably opened up your number to spam texts.

Can I take legal action for spam texts?

TCPA allows individuals to take legal action against offending businesses if they have violated the law. Under TCPA, consumers may be entitled to up to $1,500 for each text, call, or fax that violates the federal law. For individuals who received multiple calls or texts from a company, this can quickly add up to thousands of dollars in damages.

Individuals who received spam texts from car dealerships and other businesses may qualify to take legal action and seek compensation. A qualified attorney can review your case and determine if you’re eligible to take action against annoying spam calls and texts from car dealers.

Join a free car dealership TCPA violations class action lawsuit investigation

You may be eligible to join this lawsuit investigation into car dealership TCPA violations under the following circumstances:

• You did NOT provide express permission in writing to the car dealership to receive the calls or messages.
  You did NOT purchase a vehicle from the dealership that is contacting you.

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