Now the use of online applications and online payment systems is the significant aspect in our life. However, along with the advantages of these technologies, there are unpleasant experiences that also emerge which give rise to lawsuits. Such example has occurred recently with Cash App, as the company has agreed to a class action settlement of 12.5 million (approximately 104 million) in a row with a spam text message lawsuit. Some of the eligible users may receive payments of up to $147 (approximately 12 250) under this.
What was the whole matter?
Cash app has been accused of SMS spam text messaging which it was sending to some of its users without their permission. These were in the form of promotion or referral links, and the users had no agreement on such messages. This case was presented in a United States federal court on a class action case.
In law, sending a commercial message to people without their consent is deemed unlawful according to the Telephone Consumer Protection Act (TCPA).
What did Cash App do?
It is what the company was not contesting in the court but rather wanted to pay the waiver at 12.5 million dollars in order to avoid being dragged in lawsuits and a procedural process in the courts. It means that they are not interested in solving the problem by giving money away, however, they are also not interested in accepting the fact that they did some wrong operation.
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 would be paid to the qualified claimants without paying the legal fees, administration fee and other costs yet permanent up to 147 dollars per claimant. However, this will also be ascertained by the amount of people that will claim.
How to get money?
In the US, in case you consider yourself a recipient of unwanted Cash App text messages, you might file a claim by filling a claim form.
It is entirely an online process.
The claim form filing deadline should be applied before the claim form filing deadline (which is usually listed on the court website or in the notice of case).
In case of approval, the payment will be made through 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. Why did Cash App agree to a $12.5 million settlement?
Cash App agreed to settle a class action lawsuit alleging it sent promotional spam text messages without users’ consent, which may violate the Telephone Consumer Protection Act (TCPA).
2. Who is eligible for the settlement payment?
U.S. residents who received unwanted Cash App promotional text messages between 2018 and 2023 without their consent may be eligible if they file a valid claim.
3. How much money can eligible users receive?
Eligible claimants may receive up to $147 each, depending on the number of approved claims and deductions for legal and administrative costs.
4. How can someone file a claim?
Eligible individuals must submit a claim form online before the deadline listed in the official settlement notice or court website.
5. Are users outside the United States eligible?
No. The settlement applies only to U.S. residents. Users from India or other countries are not eligible to participate.
