Supreme Court Facebook v. Duguid Decision

Supreme Court Facebook v. Duguid Decision
GraphicsSC / Pixabay

John Richer comments on the Facebook vs Duguid opinion out of the Supreme Court.

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Q4 2020 hedge fund letters, conferences and more

Supreme Court's Decision In The Facebook vs Duguid Case

"Today’s decision by the United States Supreme Court in Facebook vs Duguid, is a big win for common sense and all organizations who utilize text messaging and automated calling. With the opinion, the Supreme Court has reduced the potential for severe liability under the Telephone Consumer Protection Act (“TCPA”)," Richer says.

Crypto Hedge Fund Three Arrows Blows Up, Others Could Follow

CryptoA few years ago, crypto hedge funds were all the rage. As cryptocurrencies rose in value, hundreds of hedge funds specializing in digital assets launched to try and capitalize on investor demand. Some of these funds recorded double-digit gains in 2020 and 2021 as cryptocurrencies surged in value. However, this year, cryptocurrencies have been under Read More

"The TCPA has stringent requirements for organizations to obtain consent to send calls and messages to consumers and others sent by an “autodialer,” and imposes penalties on improper messages/calls of up to $1,500 per message/call. The Court in Duguid settled a raging debate about the definition of an autodialer.  It held to qualify as an autodialer the device must have the capacity to “use a random or sequential number generator to either store or produce phone numbers to be called," Richer says.

"Most businesses and organizations recognize there is little value in calling/messaging numbers at random. Instead, most target their messages to specific groups of customers and leads. In recent years, TCPA plaintiffs have attempted to use a strained definition of “autodialer” to argue that these targeted messages use such a device. These plaintiffs have had some success with that argument, extracting millions of dollars in judgments and settlements from well-meaning businesses acting in good faith in the process. Today’s ruling by SCOTUS destroys that argument," Richer says.

"In the short term, beyond the benefit to businesses as a whole, this is a significant win for all current TCPA defendants. Many of those actively litigating these claims should be able to quickly move for summary judgment or dismissal in their favor. In the long term, Congress will likely need to act to provide further regulation and clarification consistent with today’s ruling. Because of that, we still recommend that businesses who use automated messages/calls continue to obtain robust consent for all contacts and texts sent," Richer says.

About John Richer

John Richer is a partner/shareholder at the national law firm Hall Estill in business litigation who specializes in the TCPA. He has advised corporate clients in compliance matters involving the TCPA and other consumer protection and lender liability laws, as well as representing clients in litigation matters and class action lawsuits filed by consumers under these laws. He has read the decision this morning and of it says,

Updated on

Anna Peel is a professional writer. In the past four years, she has written for many websites including BSC Kids, Wasabi Media Group, Boomtron, and many others. She currently live in Savannah, Georgia and occasionally blogs about fashion during her free time.
Previous article These Are the Ten Major IPOs To Watch For in 2021
Next article All Tech Revolves Around This Disruptor

No posts to display