Residents of Alabama, Louisiana, and Mississippi who received prerecorded robocalls on their cell phones advertising pizza will receive either $15 or a voucher for a free large, one-topping pizza. In addition, Domino’s agreed to comply with the requirements of the Telephone Consumer Protection Act (TCPA).
Domino’s has agreed to pay up to $9.75 million to settle the class action lawsuit involving residents of Alabama, Louisiana and Mississippi. The terms of the settlement include more than $6,000,000 worth of cash awards and free pizza vouchers to class members who submit valid claims as well as $5,000 to pay the representative class member. As part of the TCPA settlement agreement, Domino’s agreed to obtain consumers’ express consent, in writing, to receiving marketing messages and/or calls in the future.
The TCPA prohibits marketers from using automated dialers to call people’s cell phones, or to send them SMS texts. The TCPA provides for either actual damages or statutory damages ranging from $500 to $1,500 per unsolicited call and/or message.
Between 2006 and 2010, a Domino’s franchise sent unwanted SMS spam texts to thousands of cell phone subscribers in Louisiana, Alabama and Mississippi. The TCPA class action was filed by Louisiana resident Toni Spillman. She alleged the text messages were ads for home delivery of pizzas and that some of the SMS ads also contained promotional coupons.
The settlement provides for $15 to people who received pre-recorded calls to their cell phones between May 2009 and May 2010. People who were robocalled between 2006 and May 2009 will get vouchers for a large pizza.
The TCPA restricts telephone solicitations, the use of automated telephone equipment, and unsolicited advertisements. Specifically, the TCPA limits the use of automatic dialing systems, prerecorded voice messages, unsolicited text messages, and junk faxes. Domino’s is only one of many companies that have been sued for allegedly violating the TCPA. For example, Best Buy, Pizza Hut, Facebook, Simon & Schuster, Yahoo, and Google have all faced TCPA class action lawsuits.
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