Spotting TCPA Compliance Issues: 3 Cases and 3 Causes
As TCPA class action lawsuits and settlements mount, contact center leaders feeling increasing pressure to protect their business from legal jeopardy. Below are three TCPA compliance cases that all failed the legal test for compliance. Each case includes a summary, the nature of the TCPA violation, and the cost.
You’ve Won a Free Cruise
Summary: In October 2017, the Resort Marketing Group, which umbrellas Carnival, Royal Caribbean, and Norwegian Cruise Line, settled a class action lawsuit. The suit alleged the company violated the Telephone Consumer Protection Act (TCPA) by contacting people through illegal robocalls.
Violation: Resort Marketing Group’s robocalls broke with TCPA compliance because the people contacted never gave the company prior express written consent. Lacking that permission, automated calls to those numbers quickly stacked up. While Resort said customers had opted in through unaffiliated websites, the company failed to provide evidence corroborating the statement.
Cost: Expected to total $12.5 million.
Solution: Express written consent is critical to making legal and lawful contact with customers or leads. Contact centers can avoid unlawful contact by using cell phone list scrubbing and other compliance tools.
DISH Network’s Do Not Call List
Summary: DISH Network had a hefty settlement this year, thanks to two separate class action lawsuits. Each suit accused DISH of calling people on the Do Not Call list. The judges and juries on the cases ruled in favor of the plaintiffs, saying DISH “willfully and knowingly” contacted people on the list.
Violation: Although DISH was working with a third-party contractor, DISH was still found responsible. Consumers repeatedly complained to the provider about receiving sales calls despite putting their numbers on the Do Not Call registry.
Cost: Nearly $350 million.
Solution: Do Not Call Lists are critical to maintain a compliant contact center. Whether yours is working as a third party or you’re running your own contact center, careful maintenance and adherence to those lists can mean the difference between steady income and a financial nightmare (as well as reputational damage).
Maybe Don’t Automate Everything
Summary: The Federal Communications Commission (FCC) issued a forfeiture order against Dialing Services, LLC, a dialing platform, over the summer (2017). The FCC found the company in violation of the TCPA in regard to cell phone calls.
Violation: Specifically, as David Bender reports at Inside Privacy, the FCC alleged Dialing Services “made automated calls to wireless phones without prior express consent.” Cell phones are protected numbers that require prior consent before a business may call them.
Cost: $2.88 million.
Solution: Avoid disconnects in your profile data. Do Not Call Lists and profile data must be carefully merged and maintained to create a unified and up-to-date customer profile. If these aren’t kept in great order, the cost can be astronomical.
TCPA compliance matters, and TCN is here to help deliver it. Its virtual call center software, combined with the Compliance Suite, can help improve TCPA compliance. To start improving your call centers compliance, download TCN’s free TCPA Checklist for Call Centers.