At long last, the Supreme Court issued its ruling on
Background
For any company that markets via text messages, the Telephone
Consumer Protection Act ( TCPA ) has been a major source
of potential liability, providing for steep statutory damages for
any company that uses an automatic telephone dialing system
( autodialer ) to send text messages to consumers without
their prior express consent. The TCPA defines an autodialer as
equipment with the capacity to both store or produce
telephone numbers to be called, using a random sequential number
generator, and to dial those numbers. 47 U.S.C. §
227(a)(1).
Over the years, a circuit split emerged over the critical issue
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On March 22, 2021, the Department of Commerce
( Commerce ) interim final rule to implement provisions of
Executive Order 13873 on Securing the Information and
Communications Technology and Services (ICTS) Supply Chain became
effective. The interim final rule made several changes to the
original proposed rule issued in November 2019. The interim final
rule clarifies when Commerce will seek other agency consultation
and the criteria to be considered when making a determination about
whether a transaction is covered. The new rule also provides more
details concerning the options available to affected parties,
The Supreme Court on Thursday issued its long-awaited ruling on what constitutes an "automatic telephone dialing system" (ATDS) under the Telephone Consumer Protection Act (TCPA).
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On April 1, 2021, the United States Supreme Court ( Supreme
Court ) unanimously reversed the Ninth Circuit Court of
Appeals decision in
v.
Duguid and held that for a device to constitute an Automatic Telephone Dialing System ( ATDS )
within the meaning of the Telephone Consumer Protection Act of 1991
( TCPA ), that device must have the capacity to use a
random or sequential number generator to either store or produce
phone numbers to be called. The TCPA prohibits making calls or
sending text messages (other than a call made for emergency
The U.S. Supreme Court has unanimously decided that the Telephone Consumer Protection Act (TCPA) covers only random-fired calls and texts to cellphones from an automatic telephone dialing system.