Tag Archives: Telemarketing

Twitter and AmEx Lawsuits Highlight Gap Between Text Message Law and Industry Standards

In a pair of lawsuits filed against Twitter, Inc. and American Express Centurion Bank, plaintiffs in a California federal court are seeking class-action status to assert claims that the defendants violated the Telephone Consumer Protection Act (“TCPA”) by sending each plaintiff a single text message to confirm that they had processed the plaintiff’s request to opt-out of receiving further text messages.  This litigation highlights a potential vulnerability in the mobile marketing programs of companies that have not fully considered how telemarketing law should inform their implementation of the Mobile Marketing Association’s U.S. Consumer Best Practices (the “MMA’s Best Practices”), the authoritative compilation of policies enforced by the major wireless carriers.

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FTC Asserts Authority to Enforce Against Senders of Unsolicited Text Messages

“LOANMOD TXT MSGS VIOL8 LAW, SEZ FTC.”  So reads the headline on the Federal Trade Commission’s Bureau of Consumer Protection’s Business Center Blog.  The posting announced the FTC’s complaint against a marketer who sent more than 5.5 million spam text messages at a “mind boggling” rate of about 85 per minute, every minute of every day.  Allegedly, most or all of the messages were unsolicited, and, like most text messages, they caused many recipients to incur standard text messaging charges.

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German Federal Network Agency Fines Two Companies €194,000 for Violating Cold Calling Ban

On July 27, 2010, the German Federal Network Agency, the Bundesnetzagentur (or “BNetzA”), issued a press release stating that it had recently levied €194,000 in administrative fines in two cases against companies accused of violating a ban on cold calling.  The cases involved consumer complaints implicating the companies in several illegal acts.  The companies claimed they had obtained prior consent from the consumers they contacted.  The BNetzA, which is the regulatory office for electricity, gas, telecommunications, post and railway markets in Germany, rejected the companies’ argument on the grounds that the “consent” was based on the consumers’ implicit acceptance of the terms of use associated with certain Internet games.  The terms of use included a provision regarding a participant’s consent to telemarketing by partners, sponsors and other companies.  The BNetzA stated that, because these terms of use did not satisfy the legal requirements for consent, the company had not obtained valid consent to call the consumers.

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FTC’s Revised Free Credit Reports Rule Becomes Effective April 2, 2010

Provisions of the FTC’s revised rule that regulate advertisements for free credit reports become effective April 2, 2010.  As required by the Credit CARD Act of 2009, the FTC promulgated the revised rule on February 22, 2010, to prevent the deceptive marketing of free credit reports by companies that required consumers to sign up for paid products and services such as credit monitoring in order to receive the reports. 

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Telemarketers to Pay $1.2 Million in Civil Penalties for TSR Violations

The Federal Trade Commission ("FTC") recently settled complaints against two telemarketing companies that allegedly called numbers listed on the National Do Not Call Registry.  The companies will pay a combined total of nearly $1.2 million dollars in civil penalties to settle charges that their marketing practices ran afoul of the Telemarketing Sales Rule ("TSR").

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