Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Twitter gets hit for Spammy Text Messages

Author: Scarinci Hollenbeck, LLC

Date: July 14, 2014

Key Contacts

Back

Spam has become such a modern reality that we hardly think twice about the occasional promotional email, and junk mail is the single largest use of the United States Postal Service.

Like anything, however, there are limits and it appears that at least one group of individuals thinks that Twitter has gone too far.

Phone with started Twitter
Photo by Sara Kurfeß on Unsplash

In a case that I recently came across, lead plaintiff Beverly Nunes is heading a class action lawsuit against the social media giant, alleging that it illegally spams the phones of users and nonusers alike with text-message ads from third parties in order to prop up its bottom line. This case invokes the Telephone Consumer Protection Act and raises questions about the long-term economic viability of Twitter and its ilk.

The Problem of Monetizing

As anyone who has ever used Twitter can attest, the social network is completely free to use. There are paid options for companies that want more users to see their posts, but this doesn’t seem likely to justify the massive investments in the tech giant. Other companies, like SnapChat, which is famous for, among other things, rejecting a multi-billion dollar acquisition deal despite having no source of revenue whatsoever.

The problem is similar to the issues that led to the bust of the dotcom bubble in the 1990s. These companies can sometimes obtain extremely significant adoption among users – Facebook has over 100 million U.S. users alone – but by lacking a way to monetize without alienating users, they run the risk of ending up relying on investor money indefinitely.

The lawsuit alleges that Twitter makes almost 90 percent of its revenue from ads – 70 percent of which comes from mobile devices. Furthermore, the company allegedly processes nearly 1 billion text message tweets per month.

The problem is that the Telephone Consumer Protection Act requires that customers opt-in before they can legally be sent promotional calls or text messages. While there are a few users that have opted-in already, most people are unsurprisingly hesitant in consenting to ads via text. The lawsuit alleges that Twitter also sends texts to numbers recycled by mobile carriers, causing non-Twitter users to be bombarded with ads.

The Telephone Consumer Protection Act of 1991

The TCPA was passed into law in 1991 in order to restrict telephone solicitations and the use of automated dialing systems. These regulations have evolved over the years, eventually resulting in the National Do Not Call Registry in 2003. There are a number of provisions included in the TCPA and among them are restrictions on promotional text messages.

Nunes is seeking class certification, damages for each violation of the TCPA – which may be up to $1,500 per violation – and an injunction to stop Twitter from spamming her and other non-users. If her allegations are true, she and her class have a strong case for compensation.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"
Understanding Chattel Paper: A Key Component in Secured Transactions post image

Understanding Chattel Paper: A Key Component in Secured Transactions

Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]

Author: Dan Brecher

Link to post with title - "Understanding Chattel Paper: A Key Component in Secured Transactions"
Crypto Compliance: A Comprehensive Guide post image

Crypto Compliance: A Comprehensive Guide

For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Compliance: A Comprehensive Guide"
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!