Plaintiffs frequently sue businesses in class actions for violation of the Telephone Consumer Protection Act of 1991, 47 U.S.C. § 227 (the “TCPA”). The TCPA generally prohibits calls and text messages to cell phones using automated systems or artificial or pre-recorded voice unless the consumer gives “prior express consent.” The TCPA imposes statutory penalties of $500 per negligent violation, and up to $1,500 per knowing or willful violation. In class actions, the potential liability usually extends back four years prior to the filing of the complaint. The numbers can get very high, very quickly—for example, at least $500,000 for 1000 calls; at least $5 million for 10,000 calls, etc. Though the TCPA does not authorize attorneys’ fees itself, plaintiffs usually recover them in class actions.
Continue Reading New FCC Interpretation Of “Express Consent” To Increase TCPA Class Action Liability
The Federal Arbitration Act Preempts Any Right To A Class Action Under State Law
The California Court of Appeal recently held that the Federal Arbitration Act (FAA) preempts any statutory right to a class action under the California Consumers Legal Remedies Act (CLRA). See Caron v. Mercedes-Benz Financial Services USA LLC et al., — Cal.Rptr.3d —-, 2012 WL 2579662 (Cal.App. 4 Dist.). In doing so, the court applied the reasoning of the Supreme Court’s landmark decision in AT&T Mobility, Inc. v. Concepcion, 131 S. Ct. 1740 (2011) holding that the FAA preempts state laws refusing to enforce arbitration agreements according to their terms.
Continue Reading The Federal Arbitration Act Preempts Any Right To A Class Action Under State Law