The True Cost of a TCPA Lawsuit

Who stands to bear the costs of a Telephone Consumer Protection Act (TCPA) lawsuit? If you have to ask, the answer is probably, “You do.” Any business that conducts a significant amount of telephone solicitations is at risk of running afoul of the TCPA. Even non-marketing calls can trigger TCPA liability.

The TCPA is a strict liability statute, meaning a violation is not contingent upon fault or criminal intent. Indeed, even unintentional (accidental) violations of the TCPA result in damages up to $500 per call. Intentional violations increase that to up to $1,500 per violation. The TCPA also has uncapped statutory damages, so those $500-per-violation penalties can add up to damages potentially in the tens of millions of dollars.

But perhaps your response to this would be to say, “I am a legitimate business; surely TCPA litigators and plaintiffs are only seeking to pursue legal action against unscrupulous scammers and other illegal operators.” However, the fact is most spam marketers are located overseas and TCPA litigators generally find it not worth the time and effort to go after them. Instead, the TCPA’s strict liability and uncapped statutory damages provide a financial incentive to target legitimate US businesses who conduct telephone solicitations.

Not all TCPA lawsuits are cut from the same cloth. This guide will cover the differences between individual lawsuits and class actions. It will also examine the hidden costs of TCPA lawsuits. And finally, it will offer some best practices to help you avoid the costs of TCPA litigation.

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