Nowadays online apps and digital payment platforms have become an essential part of our lives. But with the benefits of these technologies, sometimes such disturbing experiences also come to the fore which lead to legal action. A similar case has been seen recently with Cash App, where the company has accepted a class action settlement of $12.5 million (about $ 104 million) over a spam text message dispute. Under this, some eligible users can be paid up to $147 (about $ 12,250).
What was the whole matter?
Cash app has been charged with SMS spam text messaging that it was sending to several users without their consent. These messages were promotion or referral links, and the users never agreed to such messages. This issue was placed before a federal court of the United States on a class action suit.
Legally, sending someone commercial messages without permission is illegal under the Telephone Consumer Protection Act (TCPA).
What did Cash App do?
This is what the company was not disputing in the court, but preferred to settle the waiver at 12.5 million dollars to escape being involved in lawsuits and a procedural procedure in the courts. This implies that they do not want to resolve the issue by parting with money, but also they do not want to acknowledge that they committed any wrong act.
Who are eligible for this settlement?
According to the terms of the settlement, people may be eligible:
- Those who were sent text messages from Cash App or its agents without consent between 2018 and 2023.
- People who received those messages without registering themselves or receiving a referral.
- Those who have filed or will file a claim in the class action.
How much money will be received?
The settlement fund is supposed to be paid to eligible claimants without consideration of legal fees, administration charges and other expenses but lasting up to 147 dollars per claimant. Nonetheless, this will also be determined by the total number of individuals that will make a claim.
How to get money?
If you live in the US and you think you received unwanted Cash App text messages, you can submit a claim by filling out a claim form.
The process is completely online.
You must apply before the claim form filing deadline (often listed on the court website or in the case notice).
If the application is approved, you will be paid via direct deposit or check.
Are users from India or other countries eligible?
No. This settlement is only applicable to people living in the US. Users from India or other countries cannot be part of this claim, even if they have downloaded Cash App.
What are the learnings from this case?
Digital privacy is very important. No app or company can send you promotional messages without permission.
If someone does this, you can take legal action or get compensation by joining a class action.
Along with technology, we should be aware of our digital rights.
What is a class action lawsuit?
Class Action Lawsuit is a lawsuit in which a person or a few people file a case on behalf of a large group. Like in this case, many users got spam messages, so everyone together filed a single case – which is called a class action.
The advantage of this is that by filing a case together, more people can get justice and compensation.
Impact on Cash App’s image?
Although Cash App is a popular fintech app, this case has definitely affected the company’s brand image. Although they did not admit fault, the settlement definitely indicated that they want to settle the dispute.
To avoid such cases in the future, companies will have to give more importance to transparency and user consent.
Conclusion
This $12.5 million settlement of Cash App is a lesson for all those who send texts or emails to consumers without permission. It sends a message that your digital consent is important, and companies should respect it. Although this case will not directly benefit India, it inspires us that it is very important to be aware of your data and privacy. If you live in the US and are eligible to be a part of this class action, then an amount of $147 is waiting for you.
FAQs
1. What is the Cash App spam text lawsuit about?
A. The lawsuit accuses Cash App of sending unsolicited spam text messages to users and non-users without their consent, violating the Telephone Consumer Protection Act (TCPA).
2. Who filed the lawsuit against Cash App?
A. A group of consumers filed a class action lawsuit against Square Inc., the parent company of Cash App, for allegedly sending unauthorized promotional text messages.
3. What is the total amount of the Cash App settlement?
A. The total settlement amount is $12.5 million, which will be distributed among eligible claimants after legal fees and administrative costs.
4. How much money can I get from the Cash App spam settlement?
A. Eligible individuals may receive up to $147, although the final amount may vary depending on the number of valid claims submitted.
5. Am I eligible for the $147 payout?
A. You may be eligible if you received one or more unsolicited text messages from Cash App between the dates specified in the settlement agreement.
