August 14, 2019

Shoe Company Faces $26M TCPA Text Suit

TCPA Text Suit

Rack Room Shoes Inc. is set to pay $26 million to settle claims that the retailer bombarded consumers with unwanted text messages in violation of the Telephone Consumer Protection Act (TCPA).

“If approved, the settlement will bring an end to what has otherwise been, and likely would continue to be, contentious litigation centered on unsettled legal questions,” stated consumer Maxwell Goldschmidt. Last week Goldschmidt asked the court to approve a settlement making 5.2 million consumers eligible to receive $5 cash and a $10 store voucher for the TCPA violation.

The class action was originally filed in 2018, with Goldschmidt alleging that the retailer – which has over 400 stores across 24 states – sent him several advertising text messages that appeared to be sent via autodialer due to the “impersonal generic nature” of the messages.

Defining Autodialer

After the D.C. Circuit’s decision in ACA International vs. the Federal Communications Commission (FCC) last year, the retailer asked for a stay after the broad definition of autodialer was struck down.

When the FCC decided to reevaluate the definition of autodialer, Rack Room argued that the suit should be paused, however, the retailer’s request was denied as the FCC’s timeline was up in the air. By May, Goldschmidt and Rack Room had reached a settlement.

The class of consumers in the TCPA text suit includes those who enrolled in Rack Room’s rewards program by giving their cellphone number and received texts from the retailer beginning in April 2014.

The cost of non-compliance extends far beyond the risk of TCPA or DNC fines – including the brand damage associated with violations and the potential loss of customers once the news gets out. Protect your organization today.