Justia Communications Law Opinion Summaries
Articles Posted in Consumer Law
Mey v. DIRECTV, LLC
The Fourth Circuit vacated the district court's order denying DIRECTV's motion to compel arbitration in an action brought by plaintiff, alleging violations of the Telephone Consumer Protection Act (TCPA). Plaintiff alleged that defendants called her cell phone to advertise DIRECTV products and services even though her telephone number is listed on the National Do Not Call Registry.Because plaintiff signed an acknowledgement expressly agreeing to the arbitration provision of the Wireless Customer Agreement with AT&T, which provision applies to her as an authorized user, the court rejected plaintiff's argument that she did not form an agreement to arbitrate. The court held that plaintiff formed an agreement to arbitrate with DIRECTV where the ordinary meaning of "affiliates" and the contractual context convinced the court that the term includes affiliates acquired after the agreement was signed. Furthermore, in light of the expansive text of the arbitration agreement, the categories of claims it specifically includes, and the parties' instruction to interpret its provisions broadly, the court must conclude that plaintiff's TCPA claims fall within the scope of the arbitration agreement. Therefore, the court remanded for further proceedings. View "Mey v. DIRECTV, LLC" on Justia Law
Allan v. Pennsylvania Higher Education Assistance Agency
Wilson, with the help of co-signer Allan, took out a student loan serviced by PHEAA. The two submitted a written request for forbearance on the loan and, in doing so, consented to calls to their cell phones. In October 2013, however, both requested that PHEAA stop calling about the loan. Despite their requests, PHEAA called Allan 219 times and Wilson 134 times, after they revoked consent. They claim that those calls violated the Telephone Consumer Protection Act, 47 U.S.C. 227 (TCPA), which generally makes it a finable offense to use an automatic telephone dialing system (ATDS) to make unconsented-to calls or texts.The Sixth Circuit affirmed summary judgment in favor of the plaintiffs. Section 227(a) provides that a device that generates and dials random or sequential numbers qualifies as an ATDS. The Avaya system used by PHEAA dials from a stored list of numbers only. The court concluded that the plain text of section 227, read in its entirety, makes clear that devices that dial from a stored list of numbers are subject to the autodialer ban. View "Allan v. Pennsylvania Higher Education Assistance Agency" on Justia Law
Gascon v. HomeAdvisor, Inc.
The San Francisco District Attorney sued HomeAdvisor, alleging it violated California’s False Advertising Law, Business and Professions Code section 17500, and the Unfair Competition Law section 17200, claiming that many of HomeAdvisor’s advertisements “are false and misleading because they are likely to deceive consumers into believing that all service professionals hired through HomeAdvisor who come into their homes have passed criminal background checks." The only person who actually undergoes a background check is the owner/principal of an independently-owned business.The court of appeal affirmed a preliminary injunction that prohibited HomeAdvisor from broadcasting certain advertisements, but, excepting advertisements HomeAdvisor discontinued, permitted HomeAdvisor to continue broadcasting them for specified lengths of time if accompanied by a disclaimer. The court rejected arguments that the order was vague, indefinite, overbroad, and unconstitutional. The government may ban forms of communication more likely to deceive the public than to inform it.” By providing several specific examples of permissible and impermissible advertising, the preliminary injunction order is sufficiently definite for HomeAdvisor to determine what it “may and may not do” pending a trial on the merits of the claims. The enjoined advertisements and descriptions are inherently likely to deceive because they exploit the ambiguity of the term “pro.” View "Gascon v. HomeAdvisor, Inc." on Justia Law
N. L. v. Credit One Bank, N.A.
The Ninth Circuit affirmed the district court's judgment in favor of an eleven year old boy in an action alleging that Credit One violated the Telephone Consumer Protection Act by making 189 automated calls to his cell phone. In this case, Credit One was trying to collect past-due payments from a customer, but, unbeknownst to the bank, the customer's cell phone number had been reassigned to Sandra Lemos, who in turn had let her son, N.L., use the phone as his own.The panel joined every circuit to have addressed this issue and held that the consent of the person it intended to call did not exempt Credit One from liability under the TCPA. Therefore, Credit One cannot escape liability under the TCPA and upheld the district court's determination that Credit One was liable for the calls made to N.L. The panel also held that, in light of Marks v. Crunch San Diego, LLC, 904 F.3d 1041 (9th Cir. 2018), the district court properly instructed the jury on the definition of an "automatic telephone dialing system." Because the jury instruction on this definition is consistent with Marks, the panel held that Credit One's challenge to it failed. View "N. L. v. Credit One Bank, N.A." on Justia Law
Medley v. Dish Network, LLC
Plaintiff filed suit alleging that DISH violated the Florida Consumer Collection Practices Act (FCCPA) in its attempts to collect debt it knew had been discharged in bankruptcy and in its direct contacts with plaintiff knowing she was represented by counsel. Plaintiff also alleged that DISH violated the Telephone Consumer Practices Act (TCPA) by contacting plaintiff about the debt with an automated dialing system after she revoked her consent to receive such calls.The Eleventh Circuit first determined that DISH's claim for the Pause debt was discharged. The court reversed the district court's grant of summary judgment as to the FCCPA claims. In this case, DISH attempted to collect debt it had no legal right to collect because the debt had been discharged in bankruptcy, and DISH directly contacted plaintiff after having received notice that she was represented by counsel. Accordingly, the court remanded on the FCCPA claims for the district court to consider whether DISH actually knew that the Pause charges were invalid and that plaintiff was represented by counsel with regard to the debt it was attempting to collect, and if so, whether such errors were unintentional and the result of bona fide error.The court affirmed the district court's grant of summary judgment as to the TCPA claim, holding that the TCPA does not allow unilateral revocation of consent given in a bargained-for contract. The court reasoned that, by permitting plaintiff to unilaterally revoke a mutually-agreed-upon term in a contract would run counter to black-letter contract law in effect at the time Congress enacted the TCPA. View "Medley v. Dish Network, LLC" on Justia Law
Duran v. La Boom Disco, Inc.
Plaintiff filed suit alleging that LBD used Automatic Telephone Dialing Systems (ATDSs) in violation of the Telephone Consumer Protection Act of 1991 (TCPA). In this case, plaintiff received hundreds of unsolicited text messages from LBD over the course of more than a year and a half.The Second Circuit vacated the district court's grant of summary judgment to LBD, holding that LBD's systems qualified as ATDSs. The court held that LBD's systems met both statutory requirements by having both the capacity to store or produce telephone numbers to be called, using a random or sequential number generator, and the capacity to dial such numbers. Accordingly, the court remanded for further proceedings. View "Duran v. La Boom Disco, Inc." on Justia Law
Cordoba v. DIRECTV, LLC
Plaintiff filed a class action under the Telephone Consumer Protection Act, alleging that DIRECTV and the company it contracted with to provide telemarketing services, Telecel, failed to maintain the do-not-call list and continued to call individuals who asked not to be contacted.The Eleventh Circuit vacated the district court's certification order, holding that the unnamed members of the putative class who did not ask DIRECTV to stop calling them were not injured by the failure to comply with the regulation. Therefore, their injuries were not fairly traceable to DIRECTV's alleged wrongful conduct, and thus they lacked Article III standing to sue DIRECTV. The court also held that, although the case was justiciable because the named plaintiff had standing, the district court abused its discretion in certifying the class as it is currently defined. In this case, determining whether each class member asked Telecel to stop calling requires an individualized inquiry, and the district court did not consider this problem at all when it determined that issues common to the class predominated over issues individual to each class member. Accordingly, the court remanded for further proceedings. View "Cordoba v. DIRECTV, LLC" on Justia Law
Blanks et al. v. TDS Telecommunications LLC
Jason Blanks, Peggy Manley, Kimberly Lee, Nancy Watkins, Randall Smith, Trenton Norton, Earl Kelly, Jennifer Scott, and Alyshia Kilgore (referred to collectively as "the customers") appealed the denial of a motion to compel arbitration and a declaratory judgment entered in an action brought by TDS Telecommunications LLC, and its two affiliates, Peoples Telephone Company, Inc., and Butler Telephone Company, Inc. (referred to collectively as "the Internet providers"). The customers subscribed to Internet service furnished by the Internet providers; their relationship was governed by a written "Terms of Service." The customers alleged that the Internet service they have received was slower than the Internet providers promised them. At the time the customers learned that their Internet service was allegedly deficient, the Terms of Service contained an arbitration clause providing that "any controversy or claim arising out of or relating to [the Terms of Service] shall be resolved by binding arbitration at the request of either party." In the declaratory-judgment action, the trial court ruled that the Internet providers were not required to arbitrate disputes with the customers. The Alabama Supreme Court determined the arbitration clause in the applicable version of the Terms of Service included an agreement between the Internet providers and the customers that an arbitrator was to decide issues of arbitrability, which included the issue whether an updated Terms of Service effectively excluded the customers' disputes from arbitration. Accordingly, the Supreme Court reversed the trial court's denial of the customers' motion to compel arbitration and its judgment declaring the updated Terms of Service "valid and enforceable," and remanded the case for further proceedings. View "Blanks et al. v. TDS Telecommunications LLC" on Justia Law
Salcedo v. Hanna
Receiving a single unsolicited text message, sent in violation of a federal statute, is not a concrete injury in fact that establishes standing to sue in federal court. Plaintiff filed suit against defendant, alleging violations of the Telephone Consumer Protection Act of 1991 (TCPA) after he received unsolicited text messages from defendant's law firm. The court found that the history and the judgment of Congress did not support a finding of concrete injury in plaintiff's allegations. In this case, plaintiff's allegations of a brief, inconsequential annoyance were categorically distinct from those kinds of real but intangible harms. The court noted that its assessment was qualitative, not quantitative. Accordingly, the court reversed and remanded with instructions to dismiss without prejudice the amended complaint. View "Salcedo v. Hanna" on Justia Law
Lavallee v. Med-1 Solutions, LLC
Debt collector Med-1 attempted to recover unpaid medical bills from Lavallee. The Fair Debt Collection Practices Act required Med-1 to disclose certain information to Lavallee, 15 U.S.C. 1692g(a), by including the required information in its “initial communication” with Lavallee or by sending “a written notice containing” the disclosures within five days after that “initial communication.” In March and April, Med-1 sent Lavallee two emails, one for each debt. The emails contained hyperlinks to a Med-1’s web server; a visitor had to click through multiple screens to access and download a .pdf document containing the required disclosures. Lavallee never opened those emails. When the hospital called her to discuss a different medical debt, she learned about the earlier debts and was told that they had been referred to Med-1. She called Med-1, but Med-1 did not provide the required disclosures. Nor did it send a written notice within the next five days. Lavallee sued Med-1. The Seventh Circuit affirmed summary judgment in favor of Lavallee, rejecting Med-1’s contention that its emails were initial communications that contained the required disclosures. The emails do not qualify as “communication” because they did not “convey[] … information regarding a debt” and did not “contain” the mandated disclosures. At most the emails provided a means to access the disclosures via a multistep online process. View "Lavallee v. Med-1 Solutions, LLC" on Justia Law