Hunton & Williams writes:
On September 11, 2015, the Federal Communications Commission (“FCC”) announced that Lyft Inc. (“Lyft”) and First National Bank Corporation (“FNB”) violated the Telephone Consumer Protection Act (“TCPA”) by forcing their users to consent to receive automated text messages as a condition of using their services. The FCC warned that these violations could result in fines if they continue.
The TCPA is a federal privacy law that requires companies to obtain their users’ prior express written consent before using autodialing systems to send marketing or advertising through phone calls or text messages. Companies may not condition use of their service on such consent.
The FCC found that although Lyft’s terms of service required users to expressly consent to receiving autodialed communications and gave them the option of opting out of automated text messages, such opt-out representations were “illusory” because there was no easy way to fully opt out from receiving the messages.
Read more on Privacy & Information Security Law Blog.
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