Leadsmarket Faces TCPA Class-Action Lawsuit
Leadsmarket, which describes itself as “the leading marketplace for consumer loans leads”, is facing a TCPA class-action lawsuit. TCPA Lawsuits against lead gen marketplaces have traditionally been fairly rare. However, a recent case that pitted plaintiffs against QuoteWizard resulted in QuoteWizard being held liable for sending unsolicited text messages under the TCPA. Plaintiffs have filed an increasing number of lawsuits against marketplaces directly causing concern across the industry.
In the lawsuit against Leadsmarket, the plaintiff alleges that the company is responsible for texts that were sent by publishers in its network. According to the lawsuit, Marketing Labs would send SMS text messages to consumers for the purpose of driving traffic to Nesmetaju websites. Leadsmarket would then sell the consumer data that was entered into Nesmetaju websites to lenders in the subprime/payday lending industry. Both Marketing Labs LLC and Nesmetaju, LLC are also named in the lawsuit.
The class is identified as individuals who registered their phone numbers on the National Do-Not-Call Registry for 31 or more days and the person received two or more phone calls from Marketing Labs within 12 months, and those text messages were for the purpose of driving web traffic to a website owned by Nesmetaju.
This lawsuit is a reminder that all players in the lead gen industry are vulnerable to TCPA lawsuits. Just because a company operates a marketplace, it doesn’t mean that they are immune to TCPA suits. While call makers incur the most risk, sellers and marketplaces often find themselves named in these lawsuits as well.
The QuoteWizard lawsuit
Marketplaces are finding themselves embroiled in TCPA lawsuits much more often after a decision against the company QuoteWizard held it liable for sending unsolicited text messages. Text messages are becoming an increasingly common way for companies to communicate with their customers. However, if the text message campaigns aren’t organized properly, the companies can find themselves violating the Telephone Consumer Protection Act. The TCPA regulates text message marketing and requires a company to have the consent of the customer to send marketing materials.
When a text message includes an advertisement, the sender must obtain the express written consent of the call recipient. Further, the advertiser must make certain mandatory disclosures in getting that written consent. Failure to comply with the provisions of the TCPA can cost a company as much as $1,500 per unsolicited phone call or text message.
In the QuoteWizard lawsuit, the company was accused of sending two unsolicited text messages to the plaintiff. The plaintiff sued QuoteWizard for violations of the TCPA and sought to represent other similar customers in a class action. The plaintiff alleged that QuoteWizard called him without his prior express written consent using an “automatic telephone dialing system” and sending two text messages to him despite his name being on the Do-Not-Call Registry.
Talk to a Columbus, OH TCPA Violations Attorney Today
Kohl & Cook Law Firm, LLC represents the interests of plaintiffs who have received harassing solicitations from businesses. We can review the messages and determine whether or not they violate the TCPA. If so, we can file suit on your behalf. Call our Columbus TCPA claims lawyers today to learn more.
Sources:
natlawreview.com/article/leadsmarket-faces-new-tcpa-class-action-tcpa-count-against-lead-platforms-grow
jdsupra.com/legalnews/text-message-marketing-quotewizard-48203/
