Yahoo Faces Class Action Suit for Violating the Telephone Consumer Protection Act

On Monday, January 5, 2016, U.S. District Judge Manish Shah granted class-action status to a lawsuit alleging that the Internet giant, Yahoo Inc., sent unsolicited text messages to Sprint customers. The class could potentially include more than 500,000 members.

Named plaintiff, Rachel Johnson, claims that she was sent an unsolicited text in March 2013 via Yahoo Messenger from a fellow Yahoo user who was advertising debt reduction services. After she received the spam message, Johnson claims Yahoo sent her an automated “welcome” message, which she claims violated the Telephone Consumer Protection Act (“TCPA”). The TCPA bars unsolicited, automated telephone calls, fax messages and text messaging. 

Conversely, Yahoo contends that the welcome messages are not the type of “intrusive mass communication” barred by the TCPA. The company further argues that Congress intended for TCPA violations to be individually litigated in small claims court. Yahoo claims that a class action suit could result in disproportionate damages in comparison to the alleged harm. If Yahoo is found to have willfully violated the TCPA, it could face damages of $500 to $1,500 per message.

The case is: Johnson et al v. Yahoo Inc., U.S. District Court, Northern District of Illinois, Nos. 14-02028, 14-02753.

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