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.
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.
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
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!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
