Cash App users who received unwanted texts from the payment platform are set to benefit from a new settlement following a $12.5 million class action lawsuit. The legal dispute centered around allegations that Cash App violated telemarketing laws by sending unsolicited promotional messages to users without proper consent. As part of the settlement, affected customers will be eligible to receive checks of up to $147, providing a financial remedy for the inconvenience caused. The settlement, approved by a federal court, aims to address claims that Cash App’s messaging practices infringed upon consumer rights under the Telephone Consumer Protection Act (TCPA). While Cash App maintains that it acted within legal boundaries, the company has agreed to implement new policies to prevent similar issues in the future. This development underscores ongoing concerns about privacy and consumer protection in the digital payment landscape.
Details of the Settlement and Eligibility
The settlement was reached after a court reviewed claims that Cash App sent marketing texts without explicit user consent, a violation of federal laws governing telemarketing communications. According to court documents, the company sent promotional messages to users who had not opted in, leading to allegations of deceptive practices and privacy violations.
Who qualifies for compensation?
- Cash App users who received at least one unsolicited promotional message after September 1, 2020
- Participants must have been residents of the United States during the period in question
- Claims are limited to users who did not opt out of receiving marketing texts
How much can be received?
| Claimant Category | Maximum Payout |
|---|---|
| Individuals who submitted valid claims | Up to $147 |
| Claimants with multiple eligible messages | Pro-rated based on the number of messages received |
Eligible claimants will have the option to receive their settlement payments via check or digital transfer. The exact amount will depend on the number of eligible claims, but the maximum payout per individual is capped at $147.
Background of the Lawsuit
The legal action was initiated in 2022 when a group of users accused Cash App of repeatedly sending unsolicited marketing messages, often labeled as spam. Plaintiffs argued that these texts violated the Telephone Consumer Protection Act (TCPA), which restricts automated telemarketing calls and texts without prior express consent. The lawsuit also claimed that Cash App failed to provide clear opt-out options, exacerbating consumer frustration and privacy concerns.
Settlement Approval and Next Steps
The settlement received court approval in late September 2023, with the judge ruling that it was fair and reasonable given the circumstances. Cash App has agreed to revise its messaging practices, including implementing improved consent mechanisms and clearer opt-out procedures. A settlement administrator will oversee the claims process, which is expected to open in the coming weeks.
Implications for Digital Payment Platforms
This case highlights the increasing scrutiny faced by digital financial services regarding user privacy and marketing practices. Industry observers note that companies like Cash App, owned by Block, Inc., must balance marketing efforts with consumer rights, especially amid heightened regulatory attention. Experts suggest that transparent opt-in policies and clear communication channels are essential for maintaining trust and avoiding legal pitfalls.
Resources and Further Reading
- Telephone Consumer Protection Act (TCPA) – Wikipedia
- Forbes: What Businesses Should Learn from Cash App’s Texting Settlement
Consumers who believe they qualify should monitor official settlement notices and visit the designated claims website to submit their information. This case underscores the importance of respecting consumer preferences in the digital age, with legal authorities emphasizing that transparency and consent are paramount to maintaining compliance and public trust.
Frequently Asked Questions
What is the recent settlement involving Cash App users?
The recent settlement involves Cash App users receiving checks of up to $147 following a $12.5 million texting settlement.
How much can Cash App users expect to receive from the settlement?
Cash App users may receive checks of up to $147, depending on their participation and eligibility in the settlement.
What was the issue that led to the settlement?
The settlement was related to texting practices by Cash App, which allegedly violated certain privacy or communication regulations.
How can Cash App users claim their settlement checks?
Eligible users can claim their checks by following the instructions provided in the official settlement website or communications from the settlement administrator.
When will Cash App users start receiving their checks?
The distribution of checks is expected to occur within the coming months after claims are processed, with exact dates provided by the settlement administrator.
