Couple Files Class Action over Marijuana Dispensary Text Messages

A California couple has filed a federal class action lawsuit over unsolicited, and unwanted, marijuana dispensary marketing in the form of text messages they received from five different companies.

Marcie C. and Richard K. of Los Angeles claim to have gotten at least 127 nuisance text messages from dispensaries between April 2016 and April 2020, all in violation of federal laws that prohibit the practice, according to their lawsuit. The couple is asking the court to penalize the marijuana dispensaries $2,000 per violation, in addition to awarding other monetary damages.

Marcie and Richard are suing Euflora of Aurora, Colo. and Long Beach, Calif., Dixie Brands, Inc., Mile High Green Cross, Native Roots Cannabis Company and Starbuds of Denver. The lawsuit was filed Sept. 30 in U.S. District Court for the District of Colorado.

The couple is seeking the court’s permission to represent a class of consumers who similarly received unsolicited and unwanted dispensary text messages, though it is unclear how many class members there may be.

What Led to the Class Action?

According to the complaint, Marcie and Richard both say they were on the receiving end of telemarketing text messages transmitted by automated dialing systems that are outlawed by the Telephone Consumer Protection Act (TCPA). Neither plaintiff gave “prior express written consent to receive such communications from any of the defendants,” the class action argues.

Each of the text messages in question contained messages advertising the dispensaries or promoting sales or special deals, according to the plaintiffs.

Marcie says Dixie sent her at least 13 text messages between April 8, 2016, and April 4, 2018. Although she admits giving the company her cell phone number on the dispensary’s website, she did not agree to receive text messages, she says.

Between Sept. 1, 2017, and Feb. 5, 2019, Marcie reportedly received at least 43 telemarketing texts from Euflora. Again, she admits giving Euflora her cell phone number when she visited the dispensary in person in 2016 but insists she never gave permission for text messaging.

And from April 19, 2016, to July 27, 2019, Marcie says she received at least 56 telemarketing texts from Starbuds. She visited the dispensary once in 2016, but never gave them her permission to send texts, she says.

Richard claims to have received 13 dispensary text messages from Mile High between June 18, 2016, and Sept. 13, 2016. One of those texts was delivered while Richard was traveling in Morocco and the text cost him money as a result.

Richard says he visited Mile High in person in April 2016 but never gave his consent for text messaging.

Native Roots texted Richard once in October 2016 and again in April 2020 without permission, he said.

Dispensary Text Messages on Trend

Text message marketing has become common practice, according to a report by Business.com, because it has been shown to be effective at driving sales in an age when today’s consumers spend so much time on their smartphones and find it a convenient way to make purchases. Particularly useful are text messages that include links allowing customers to click through to explore products and make purchases.

“Text messaging is incredibly popular, racing ahead of even social media platforms,” Business.com says.

Marketing specialists also point to a recent survey by the research and marketing firm Code Broker. Among its findings, the survey revealed that of 1,200 consumers polled, 60% said they would redeem a retail coupon sent to them via text message within a week of getting it, and 25% said they would redeem it in three days.

About the TCPA

No matter its popularity, text message marketing is subject to federal regulations the same as e-mail and telephone marketing.

Congress enacted the TCPA, in 1991. It restricts the use of automatic telephone dialing systems, artificial or prerecorded voice messages and text messages, and requires entities making telephone solicitations to maintain do-not-call lists.

The Federal Communications Commission (FCC) is in charge of regulating and enforcing the TCPA.

In 2012, new technology and marketing trends prompted the FCC to revise its TCPA regulations to “require telemarketers to obtain prior express written consent from consumers before robocalling or texting them … and to require telemarketers to provide an automated, interactive ‘opt-out’ mechanism … so consumers can immediately tell the telemarketer to stop calling,” the FCC’s guidelines on the telephone act says.

The Dispensary Text Messages Class Action Lawsuit is Marcie Cooperman, et al. v. Dixie Brands, Inc., et al., Case No. 1:20-cv-02955 in the U.S. District Court for the District of Colorado.

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This article is not legal advice. It is presented
for informational purposes only.