This month, restaurant chain Hooters of America, LLC (“Hooters”) agreed to pay up to $1,420,150 to settle a Telephone Consumer Protection Act (“TCPA”) lawsuit filed in connection with its text message marketing practices.
How does the TCPA create legal risks for businesses that deliver text messages?
Text Messages and TCPA Lawsuit
Hooters customers can opt into the company’s text message marketing program to receive offers and discounts via SMS. In January 2015, Hooters allegedly delivered a text message to consumers on its marketing list from a new short code:
“Hooters Fans: Our mClub has moved! Don’t worry, you’ll still receive exclusive news, just from a new number. Reply STOP to unsubscribe. MsgData rates may apply.”
In April 2015, a Wisconsin resident filed a putative class action TCPA lawsuit against Hooters in the U.S. District Court for the Northern District of Georgia (Case No. 15-cv-1055), alleging that he and numerous other