In a recent decision, the Ninth Circuit in True Health Chiropractic, Inc. v. McKesson Corp. (True Health II), No. 22-15710 (9th Cir. Oct. 25, 2023), has offered an in-depth clarification of the standards for certifying class action lawsuits under the Telephone Consumer Protection Act (TCPA). The court further addressed the determination of whether a violation of the TCPA provisions is significantly “willful and knowing” to warrant treble damages. This judgment confirms the earlier ruling from the Northern District of California in the original case of True Health Chiropractic Inc. v. McKesson Corp., 13-cv-02219 (N.D. Cal. Apr. 27, 2022).
The TCPA, in its current form, presents two significant components pertaining to legal practitioners. Firstly, it serves to protect consumers from unsolicited automated calls or texts by enabling individuals to take action against companies that overstep the regulations. Secondly, it provides for class certification, making it a potent tool for consumers and, consequently, a potential threat to corporations that fail to heed its provisions.
This verdict holds critical considerations for corporations and their legal counsel. It provides clear guidelines on the magnitude of infringements necessary to warrant treble damages under the TCPA, a punitive component that triples the existing finable amounts. Furthermore, the decision redefines the thresholds for class certification, possibly affecting the scale and viability of future class action lawsuits under the TCPA.
In conclusion, it is vital for corporations and law firms to stay abreast of these decisions that delves into the heart of TCPA jurisprudence. Thoughtful navigation through the calls, texts, and fax scenario can drastically reduce the risk of contravening the act and facing possible lawsuits. Corporations should thus work closely with their legal departments or external legal counsel to conduct regular compliance checks and implement any necessary changes in line with these legal developments.