Hot Topic Will Pay $2.9M To Settle Text Message Class Action

Hot Topic customers asked a California federal judge to approve a $2.9 million settlement that would end their claims that the clothing retailer unlawfully sent promotional text messages advertising their products.

Hot Topic is not opposing the proposed settlement deal.

Previously, there was back and forth over the Hot Topic class action lawsuit, including an unsuccessful move by Hot Topic to have the class action lawsuit dismissed.

The proposed settlement deal would cover anyone who received one or more text messages from the clothing retailer between August 2012 and the date of the settlement’s preliminary approval. The amount that each Class Member would receive as compensation depends on how many people submit claims.

Although the total amount of the fund is $2.9 million, $1.5 million of that is non-reversionary. If the total amount of claims made to the settlement exceeds $1.5 million, the settlement fund will be increased, up to $2.9 million.

The Hot Topic class action lawsuit was filed by Diana Soukhaphonh in March 2018. She challenged a text message she received from Hot Topic in November 2015. She says that the message confirmed her subscription to Hot Topic text alerts.

Allegedly, she did give her cell phone number to the retailer upon making a purchase, but did not want to receive messages from Hot Topic. She claimed that Hot Topic violated the Telephone Consumer Protection Act, a law designed to protect consumers from unwanted messages from retailers.

Soukhaphonh says the TCPA prohibits businesses from contacting consumers without their express, written consent. Allegedly, though she did give her phone number, she did not give her consent to be contacted.

However, Hot Topic argued that this was not the case, because Soukhaphonh made an online purchase in 2015, and that purchase included a pre-checked box that stated “Yes, I want to receive text messages about special events and offers.”

Hot Topic claimed that Soukhaphonh never unchecked that box, therefore it amounted to her giving consent to receive text messages as part of their promotional program.

Hot Topic has fought back against the TCPA class action lawsuit, attempting to have the claim dismissed in February 2018. This move was unsuccessful, because a judge determined that Hot Topic had only presented an issue of fact, which could be addressed during continued litigation.

Additionally, Hot Topic attempted to have the case stayed until the Ninth Circuit more clearly defines automatic telephone dialers, the use of which is prohibited by the TCPA.

Soukhaphonh claimed that Hot Topic had used an automatic telephone dialer to contact her and other consumers, in violation of the TCPA.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The Hot Topic customer is represented by David P. Milian and Ruben Conitzer of Carey Rodriguez Milian Gonya LLP and Robert Ahdoot and Tina Wolfson of Ahdoot & Wolfson PC.

The Hot Topic Spam Text Class Action Lawsuit is Diana Soukhaphonh v. Hot Topic Inc., Case No. 2:16-cv-05124, in the U.S. District Court for the Central District of California.
UPDATE: August 2019, the Hot Topic text ad class action settlement is now open.Click here to file a claim.

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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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