Companies that employ auto-dialing, text messaging and bulk faxing in their marketing efforts may find themselves the subject of a class action lawsuit for violating the federal Telephone Consumer Protection Act (TCPA). Because each violation of the TCPA could cost the advertiser up to $1,500, TCPA class actions could potentially involve millions in liability, and can be enormously expensive to defend. Insurance often is a critical lifeline for companies facing these lawsuits.
It used to be that the “personal and advertising injury” coverage within general liability (GL) policies at least potentially protected against TCPA lawsuits. But in recent years, many GL policies have added exclusions to their policies that specifically apply to coverage for TCPA-related claims. So today’s companies need to be more proactive in finding coverage for TCPA claims, but absolutely should not give up just because their GL policy excludes TCPA claims.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
