Claims of TCPA Violations End with $4.8 Million Settlement

Allegations of TCPA violations by Florida car dealerships have resulted in multi-million dollar settlements.

One recent federal class action lawsuit resulted in a Florida auto seller having to pay out $4.8 million for allegedly making unsolicited “robocalls” and sending text messages consumers.

According to a recent article in Automotive News, Grieco Ford of Fort Lauderdale agreed to the settlement last fall in order to resolve allegations of “illegal conduct…[resulting] in the invasion of privacy, harassment, aggravation, and disruption of the daily life of thousands of individuals.”

Grieco is only one auto dealership that has been targeted in lawsuits alleging violations of the federal Telephone Consumer Protection Act. A number of car dealers have paid out millions of dollars for making unauthorized sales calls to consumers in violation of federal law.

About the TCPA

The Telephone Consumer Protection Act of 1991 is an amendment to the Communications Act of 1934. The original law was established “For the purpose of regulating interstate and foreign commerce in communication by wire and radio,” assuring that such services would be available to all Americans at a reasonable cost.

The TCPA amendment was added in response to the growing practice of uncontrolled, harassing telemarketing, including faxes. Later amendments apply similar restrictions to calls and texts sent to a mobile phone.

The specific provisions of the TCPA include rules such as:

• Telemarketers may not use auto-dialers (“robocalling”) and pre-recorded messages without a consumer’s written consent
• Consent can be revoked at any time
• That consent “survives” even if a subscriber ports their number from a landline to a cell phone
• Telemarketers may not call a reassigned number without the new subscriber’s consent

An exception is made for certain situations, such as emergency fraud alerts or medication reminders; however, call recipients must still be offered the opportunity to “opt out.”

Penalties for Violations

Enforcement of the TCPA has been assigned to the Federal Communications Commission (FCC). The FCC initially required all commercial telemarketers to create and maintain a “do-not-call” database. In 2003, a nationwide Do Not Call registry was established by the Federal Trade Commission.

Consumers affected by calls that violate the TCPA can sue for damage awards of up to $1,500 per incident. The fact that car dealership TCPA violations have resulted in multi-million dollar settlements gives a hint as to how often these rules may be violated.

More Car Dealership TCPA Violations

Grieco Ford is not the only car dealership that has been sued for making unsolicited prerecorded sales calls. In 2017, dealers in the Florida communities of Clearwater and Naples were targeted in complaints. One of them, Naples Nissan, wound up paying $5.7 million in order to settle a class action lawsuit brought by thousands of consumers who had received unwanted sales calls.

Nor is it a recent phenomenon. In 2012, one of the nation’s top dealerships, Lithia Motors of Medford Ore., was accused of sending over 100,000 unauthorized text messages to consumers. Ultimately, settling the allegations cost their third-party text vendor $2.5 million.

The TCPA Applies to “Ringless” Messages, Too

Telemarketers are constantly attempting to find ways around the law. A recent trick is to send “ringless voicemails,” which are prerecorded messages that go straight to a subscriber’s mailbox. However, according to at least one federal court, ringless voicemails may also constitute car dealership TCPA violations.

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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