Unknowingly violating the Telephone Consumer Protection Act (TCPA) is the latest litigation dragnet ensnaring cannabis companies. The TCPA is a consumer protection law that restricts telemarketing calls, unsolicited text message marketing, the use of automatic telephone dialing systems, and artificial or prerecorded voice messages. With TCPA penalties ranging from $500 to $1,500 per individual call or text and a lengthy four-year statute of limitations, it’s alarmingly easy for businesses to find themselves potentially facing millions of dollars in fines.
Industry concerns about the TCPA began percolating in 2018 when California delivery company Eaze Solutions Inc. faced a class-action lawsuit alleging violations from unsolicited text message marketing. Although the suit ultimately was forced into arbitration and dismissed by a federal judge in 2020, a slew of cannabis businesses of all sizes are facing or have faced similar lawsuits, some with the potential