May 22, 2015

Two Large Hotel Chains Settle $1.5 Million Class Action Suit

Two large hotel chains recently settled a class action suit for $1.5 million over allegations that the hotels failed to capture consumer consent before recording phone calls with consumers, which was in violation of California’s Invasion of Privacy Act.

While federal law permits the recording of telephone calls as long as one-party consents to the recording, several states—including California—require the consent of all parties.

The class action complaint alleged the hotel chains recorded consumers’ telephone conversations without the appropriate consent as far back as 2006. Class members received payments as high as $5,000.

This hefty settlement is a reminder any business engaging in call recording, even with employee consent, must ensure that they have the appropriate disclosure and consent mechanisms in place prior to making calls to or from an all-party consent state.

To learn more about call recording compliance, please contact Gryphon’s Privacy Consulting Team.

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