May 7, 2013

Papa John’s Settles TCPA Lawsuit for $16.5 Million

Papa John’s agreed to settle its Telephone Consumer Protection Act (TCPA) lawsuit last week. The pizza chain had been facing the largest fine ever for violations of the TCPA in history, but settled with the plaintiffs on Friday.

We covered the filing of the class-action lawsuit last fall. It alleged the pizza chain sent a total of 500,000 unwanted text marketing messages without obtaining consent first, as required by the TCPA. The law allows for penalties up to $1,500 per unsolicited text message if a defendant is found to have willfully broken the law.

Papa John’s has argued consumers gave consent in providing their mobile numbers to the company when ordering a pizza and, as a franchisor, cannot be held liable for marketing privacy violations of its franchisees or third-party marketing vendors they use.

The courts, the FTC and the FCC have been clear that corporations are responsible for marketing privacy violations committed by independent agents or third-party vendors. They have also made clear that businesses can only send marketing text messages to consumers who’ve expressly opted in to receive those messages, not simply provided their cell phone number to a business for some other reason.

Papa John’s will pay a $16.5 million penalty in this settlement.

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Navigating the state and federal regulatory maze while mitigating risk is becoming more daunting every day for compliance leaders. Especially when dealing with agents in branch offices, reps using personal phones, or independents and BPOs marketing on your behalf. For almost 20 years, Gryphon has protected the largest and most valued brands in banking, insurance, manufacturing and home services from headline risk, brand damage, and costly fines associated with outbound marketing violations.

Avoid TCPA and DNC fines. Protect your business from TCPA and DNC Risk. The Cost of non-compliance extends far beyond the risk of fines. Since 1998, Gryphon’s highly patented suite of compliance services provides bulletproof compliance and protection from headline risk, brand damage, and costly penalties.

Our services apply all legal exemptions to those laws to help your business grow, and our experts provide customized consulting and support with expanding regulations. Bullet-proof compliance is only half the equation used to solve TCPA and DNC compliance issues.  Gryphon’s intelligent cloud engine automatically applies legal exemptions (opt-ins) to make sure you are not over-suppressing legal contacts who want to hear from you. Gryphon’s Secure Cloud engine unlocks your largest marketable universe to maximize your outreach and protect every opportunity.