Auto Warranty Providers Face Class-Action TCPA Lawsuit for Unsolicited Robocalls

by | Jun 12, 2019 | Compliance Blog Posts | 0 comments

Do-Not-Call Means Definitely DO NOT CALL

Auto-warranty provider VAD, which operates as CM Auto, SunPath Limited Corp. and Northcoast Warranty Services Inc., is facing a Telephone Consumer Protection Act (TCPA) class action lawsuit for making unsolicited robocalls to consumers.

Lead plaintiff Daniel Canfield claims that VAD called him two weeks ago and left a prerecorded message advertising auto warranties – although he had never requested to be contacted by the company “in any manner.” Canfield called the number back and was offered to purchase an auto warranty by an agent and then emailed a policy with information about VAD.

“Defendants respected class members’ time and privacy so little that it did not even employ a real person to call them — it employed a machine to play prerecorded messages to thousands of consumers at once in the hopes that a couple may purchase defendant’s product and justify the class as the ‘cost of doing business.'”

Canfield seeks to certify a proposed class of non-consenting consumers in the U.S. who received one or more calls on their cellphones from VAD within the last four years. He claims the class meets the requirements for certification and is numerous in size.

Canfield’s attorney Mark L. Javitch told Law360 that companies like these “cooperate and fund a clandestine network of robocallers who are initiating thousands of TCPA-violating calls every day to consumers nationwide.” Representatives for SunPath and Northcoast could not be reached for comment.

TCPA violation fines can put small and even medium-sized companies out-of-business; learn how you can protect your organization from penalties and brand damage.

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