In advance of a June 13, 2017 hearing in the House Judiciary Subcommittee on the Constitution and Civil Justice on "Lawsuit Abuse and the Telephone Consumer Protection Act," the Insights Association joined with the U.S. Chamber of Commerce's Institute for Legal Reform and a coalition of other organizations in a letter to the subcommittee.
As our letter explained, "The Telephone Consumer Protection Act (TCPA) plagues businesses and other organizations in every sector of the economy that need to contact their customers or employees. While the TCPA serves an important purpose of protecting consumers’ privacy, this 26-year-old law is outdated and being manipulated by the plaintiffs’ bar and serial plaintiffs to leverage settlements benefiting trial attorneys. In fact, as of 2014, the average TCPA plaintiff was awarded $4.12, while the average attorney payout was $2.4 million. These large paydays have only escalated litigation filings year-after-year. Between 2010 and 2016, there was a 1,272% increase in case filings."
With the use of mobile apps to automate TCPA lawsuits and serial plaintiffs who sit with a massive amount of cell phones just waiting to sue any incoming caller, "It is evident a well-intentioned law is being stretched beyond its means for unscrupulous gain."
As we concluded, "Businesses need clarification and reasonable standards on how to reach their consumers, not the threat of a million or billion dollar class action lawsuit each time they pick up the phone or send a text message. We greatly appreciate your leadership in looking at the TCPA and the abusive litigation this outdated statute is causing and look forward to working with the Committee to pursue much needed reform."