Texting coupons can get you into trouble

Texting coupons can get you into trouble

Texting discount offers appear to be the wave of the future in marketing, but businesses should be extremely careful in how they approach this technique. A federal judge has given the go-ahead to a consumer lawsuit accusing the oil change company, Jiffy Lube, of spamming customers with text ads for discounts.

The case arose last year, when several consumers filed for a class action lawsuit against Jiffy Lube and its marketing partner TextMarks, for allegedly sending unsolicited text messages advertising a “one-time offer” for 45% off an oil change.

The consumers argued that the ads violate the Telephone Consumer Protection Act (TCPA), which prohibits companies from using automatic telephone dialing systems to make calls to cell phones unless the owners have consented. Other judges have said the law applies when companies use devices capable of generating phone numbers to send text messages without users’ permission. The law provides for damages starting at $500 per violation.

U.S. District Court Judge Jeffrey Miller in the Southern District of California rejected Jiffy Lubes argument that the TCPA was unconstitutional because it restricts free speech. He also disagreed with Jiffy Lube’s stance that it couldn’t be held responsible for the ads because it had tapped an outside company, TextMarks, to manage the campaign.

The ruling shows that texting campaigns can prove dangerous for marketers and that care should be taken when considering them. Stay tuned.