TCPA Class Action Settlement with American Eagle to Move Forward After Appeal

In late April, the Second Circuit said that a $14.5 million TCPA class action settlement with American Eagle Outfitters and consumers is set to go forward, despite appeals and one class member’s objection.

According to the class action lawsuit, which originally included American Eagle along with the marketing company Experian Marketing Solutions, the company violated the Telephone Consumer Protection Act (TCPA) by sending spam texts to consumers. PLaintiffs claimed these texts were violations of the TCPA because the recipients either had unsubscribed from the texts or never consented to receive them in the first place.

The TCPA class action settlement was reached in late 2016, with American Eagle agreeing to put an end to the claims by settling $14.5 million on 618,000 proposed Class Members. Each Class Member would receive between $142 and $285.

The two parties who objected to the TCPA class action settlement were Experian Marketing Solutions, which claimed that texts aren’t included in the TCPA, and one class member.

In response to Experian’s claims that texts aren’t covered by the TCPA, the three-judge panel for the Second Circuit dismissed the appeal entirely, finding that the text messages themselves were a type of spam indeed specifically covered by the TCPA, and considered “injury in fact.”

In 2015, Experian was dismissed from the class action, and is not part of this TCPA class action settlement agreement. Notably, American Eagle filed a complaint against Experian for indemnity, breach of contract, and several other claims over this spam texting issue.

Background of the TCPA

The Telephone Consumer Protection Act (TCPA) was first introduced back in 1991 in order to protect consumers against solicitation that uses technology. Since then, it has been updated to include new technologies as they emerge and are incorporated into telemarketers’ toolkits for spamming and harassing consumers. Now, the TCPA covers telemarketing tactics like placing robocalls, unsolicited text messages, not providing an opt out option, and more.

Do Not Call list participants are often surprised by how many calls they still receive. A single negligent violation of the TCPA may incur a $500 fine, but this may be increased to up to $1,500 per violation if it was made in willful or knowing violation of TCPA regulations.

Filing a TCPA Lawsuit

One of the most effective ways to hold companies responsible for violating the TCPA is through consumer reporting and litigation. When a consumer understands TCPA and is able to report violations, they are better equipped to hold companies responsible, and may also be entitled to compensation.

In order to help ensure that your lawsuit is as effective as possible, keep records of messages or phone calls that you believe violate the TCPA as evidence.

If you have been targeted with spam texts or unwanted robocalls from one of the companies named on our investigation page—such as Bank of America, Discover, GrubHub, Yelp, and many more—you may be able to file a lawsuit and pursue compensation.

Join a Free TCPA Class Action Lawsuit Investigation

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.

Get a Free Case Evaluation Now

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