Lawsuit Investigation: Is Cash App Sending Illegal Spam Texts?
Last Updated on December 22, 2023
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter.
Check back for any potential updates and take a look at our open investigations here. The information on this page is for reference only.
At A Glance
- This Alert Affects:
- Washington residents who received a text message from a contact inviting them to download Cash App.
- What’s Going On?
- Attorneys working with ClassAction.org are investigating whether a class action can be filed against Cash App for allegedly sending consumers unsolicited texts as part of its referral bonus program. Specifically, attorneys are looking into whether the company sends app invites to consumers through their friends’ and families’ phone numbers without the recipients’ consent.
- How Could a Lawsuit Help?
- If filed and successful, a class action lawsuit could allow consumers to recover up to $500 in damages. It could also force Cash App to change its business practices.
Attorneys working with ClassAction.org would like to speak with Washington residents who have received a spam text from a contact inviting them to download Cash App.
The text messages, which are sent under a contact’s phone number but composed and initiated by Cash App, invite a non-existing user to sign up for an account using a referral code so that both the sender and the recipient can receive a referral bonus.
It’s being investigated whether Cash App’s app invitation text messages are sent without the recipient’s prior consent in violation of the Washington Commercial Electronic Mail Act (CEMA).
A class action filed under the CEMA, a state-specific law that prohibits companies from sending Washington residents unsolicited promotional text messages without their permission, could potentially provide $500 per message.
What Is the Washington CEMA?
The Commercial Electronic Mail Act is a state-specific consumer protection law originally passed in 1998 to cut down on unwanted, misleading or otherwise “spammy” emails. In 2003, the law was amended to include provisions restricting the transmission of unsolicited promotional text messages to Washington residents’ cell phones.
The CEMA specifically states that companies are prohibited from sending promotional text messages unless the recipient has “clearly and affirmatively consented in advance to receive these text messages.”
Attorneys believe that Cash App may have violated the CEMA by inviting consumers to download the app without first obtaining their permission to contact them via text.
How Could a Class Action Lawsuit Help?
If filed and successful, a class action lawsuit filed under the CEMA could allow consumers the chance to recover up to $500 for the text messages. It could also force Cash App to comply with the anti-spam law moving forward.
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