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Cash App $12.5 Million Settlement for Unsolicited Spam Texts
11 months agoUS
Cash App, operated by Block, Inc., has agreed to a $12.5 million settlement to resolve a class-action lawsuit alleging that it sent unsolicited spam text messages to users, violating consumer protection laws. The lawsuit, filed in Washington state, claimed that Cash App’s "Invite Friends" referral program led to the unlawful bombardment of users with spam texts. While Cash App does not admit any wrongdoing, this settlement may provide compensation to affected users in Washington state.
Key Insights
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Settlement Amount:: Block, Inc. will pay $12.5 million to settle the lawsuit.
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Eligibility:: The settlement applies to Washington state residents who received unsolicited text messages from Cash App’s "Invite Friends" program between November 14, 2019, and a to-be-determined date.
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Potential Payment:: Eligible claimants could receive between $88 and $147, depending on the number of participants.
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Legal Basis:: The lawsuit was filed under the Washington Consumer Electronic Mail Act (CEMA) and the Washington Consumer Protection Act.
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Why this matters:: This settlement highlights the importance of adhering to consumer protection laws regarding electronic communications and the potential financial repercussions of non-compliance. It also underscores the growing scrutiny of marketing practices that involve unsolicited messaging.
In-Depth Analysis
The class action lawsuit, initiated by Kimberly Bottoms in November 2023, accused Cash App of violating Washington state consumer protection laws through its "Invite Friends" referral program. This program allowed Cash App users to send pre-generated text messages with referral links to their contacts. The plaintiffs argued that Block, Inc. incentivized and facilitated the sending of these unsolicited texts, leading to violations of CEMA.
The court determined that the Telephone Consumer Protection Act (TCPA) did not apply in this case, as CEMA imposes liability for assisting in the transmission of spam texts, regardless of whether the company physically sent the messages. Block, Inc. initially contested the claims but eventually agreed to the settlement to avoid further legal expenses and potential damages.
How to Prepare:
1.
Monitor Communications: If you are a Washington state resident, keep an eye out for official notifications via email or physical mail regarding the settlement.
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Gather Evidence: If you received spam texts from Cash App, retain any records of these messages.
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Stay Informed: Visit the settlement website (when available) for updates on the claim filing process and deadlines.
Who This Affects Most:
This settlement primarily affects individuals residing in Washington state who received unsolicited text messages from Cash App’s referral program. These individuals may be entitled to compensation upon successful claim submission.
FAQs
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Q: Who is eligible for the Cash App settlement?
Washington state residents who received unsolicited text messages from Cash App’s "Invite Friends" program between November 14, 2019, and a to-be-determined date.
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Q: How much money can I get from the Cash App settlement?
Eligible claimants could receive between $88 and $147, depending on the number of participants.
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Q: How do I join the Cash App settlement?
Methods for opting into the settlement are not yet available. Monitor for updates via email, physical mail, and news sources.
Key Takeaways
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Cash App has agreed to a $12.5 million settlement for sending unsolicited spam texts.
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The settlement applies to Washington state residents who received these texts through the "Invite Friends" program.
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Eligible claimants may receive between $88 and $147.
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Keep an eye out for official notifications regarding the settlement and claim filing process.
Discussion
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