The Impact of SCOTUS Ruling - Facebook, Inc., v. Duguid
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Before Facebook, Inc., v. Duguid, 592 U. S. ____ (2021) For many years, health plans and providers called and No Exception from the texted individuals at their peril TCPA for Healthcare- about health care matters, risking class action lawsuits Related Text Messages under the federal Telephone Consumer Protection Act of The FCC said: 1991 (TCPA). First, if healthcare-related calls really The TCPA imposes restrictions are so welcomed by consumers, on making calls using an getting consent should be easy. “automatic telephone dialing system” without the prior Second, no exemption for healthcare- express consent of the party related calls is appropriate just because called. Unlawful uses of auto- the content of those calls is also dialers may result in penalties regulated by HIPAA. up to $1,500 per violation or three times the plaintiffs’ actual monetary losses. “HIPAA regulates the content of communications (to ensure the Health Plans repeatedly sought privacy of patient information) exemptions from the FCC for health care-related calls and whereas the TCPA regulates the text messages. methodology of the communication (to restrict calls and texts made The FCC repeatedly said no. using an auto dialer or an artificial or prerecorded voice, and made without the prior express consent of the called party.” 22 ‹#›
Facebook v. Duguid, 592 U. S. ____ (2021) In 2014, Noah Duguid received several Many of us questioned login-notification text messages from whether the TCPA applied Facebook, alerting him that someone had attempted to access the Facebook to calls placed and text account associated with his phone messages sent to known number from an unknown browser. recipients for population Facebook has a security feature that health purposes, but the sends users “login notification” text answer was far from clear. messages when an attempt is made to access their account from an unknown device or browser. The TCPA applies to calls and texts using an “automatic telephone Users must opt-in to the service. dialing system,” which is defined as Duguid never had a Facebook account a piece of equipment with the and never gave Facebook his phone capacity “to store or produce number. telephone numbers to be called, The question before the Court was using a random or sequential whether the definition of an automatic number generator,” and to dial telephone dialing system encompasses those numbers. equipment that does not “us[e] a Some Courts of appeal held that random or sequential number auto dialers need only have the generator” but can “store” and dial capacity to “store numbers to be telephone numbers randomly once called” and “to dial such numbers those known numbers are stored into automatically.” the equipment. On April 1, 2021, the United States Supreme Court changed all of this for health plans and providers who want to send text messages to known individuals – whether or not they are current members or patients – en masse. 33 ‹#›
must use a random or sequential number generator. Health Plans have yet to catch up. For example, one health plan presumes that its vendors are using autodialers within the meaning of the TCPA “absent compelling proof to the contrary by the vendor” and vendors must provide evidence of compliance with the TCPA via documented processes, including written policies, procedures, and program documents, which must be maintained and provided to the plan upon request. One suggestion for handling is to having the policies and procedures state that the vendor’s equipment does not use a random or sequential number generator in sending text messages to individuals, and therefore is not subject to the TCPA according to Facebook v. Dubuid, 592 U. S. ____ (2021). 44 ‹#›
State Laws Still Apply. Such state laws are generally not preempted by the TCPA if they are more restrictive. See 47 U.S.C. § 227(f)(1) California Prohibits an entity or person conducting business in California from transmitting a “text message advertisement.” CAL. BUS. & PROF. CODE § 17538.41. A “text message advertisement is a message, the principal purpose of which is to promote the sale of goods or services, or to promote a political purpose or objective, to the recipient, and consisting of advertising material for the lease, sale, rental, gift offer, or other disposition of any realty, goods, services, or extension of credit, or advertising material for political purposes.” Moreover, the statute explicitly excludes text messages transmitted at the direction of a person or entity offering the service if the subscriber is offered an opt-out, CAL. BUS. & PROF. CODE § 17538.41(2)(b). Connecticut Prohibits “telephonic sales calls” made without the “prior express written consent” of the called party. Conn. Gen. Stat. § 42-288a. Illinois 815 ILCS 413/1 et seq., that prohibits calls between 9 p.m. and 8 a.m. by live operators to solicit the sales of goods or services, and that appears to cover text messages. New Jersey Prohibits the sending of an unsolicited advertisement via text message to any New Jersey resident if the message will cause the called party to incur a charge or a deduction from a messaging allocation. N.J. Many other states have similar mini-TCPA laws Stat. § 2A:65D-1 et seq. and do-not-call laws, e.g.: Rhode Island Arizona (A.R.S. §§ 13-2919, 44-1271) Gen Laws 5-61-3.6, also Arkansas (A.C.A. § 4-99-401 et seq.) Georgia (O.C.G.A. § 46-5-27) prohibits text message Indiana (Ind. Code 24-4.7.1.1 et seq.); advertisements without Minnesota (Minn. Stat. § 325E.27 et seq.) consent, and excludes Mississippi (Miss. Code Ann. § 77-3-701 et seq.) messages sent by Pennsylvania (73 P.S. §§ 2241 et seq., 2250.1 et seq.) businesses with existing Rhode Island (R.I. Gen. Laws § 5-61-1 et seq.) relationships with South Dakota (S.D. Codified Laws § 37-30-1 et seq.) subscribers who are offered Tennessee (Tenn. Code Ann. § 47-18-1501 et seq.) Utah (Utah Code Ann. § 13-25a-101 et seq.). an opt-out process. 55 ‹#›
Florida & Other ”Hybrid” States FL Stat. § 501.059 Other states have laws like Florida’s that (2) Any telephone solicitor who makes an unsolicited telephonic address related practices but are not sales call to a residential, mobile, explicitly TCPA laws or are “hybrid,” or telephonic paging device (regulations address prohibited sales and telephone number shall identify debt collection tactics) e.g.: himself or herself by his or her • Louisiana (La. R.S. § 9:3562) true first and last names and the • Massachusetts (940 CMR 31.06(9)) business on whose behalf he or • Vermont (8 V.S.A. § 2241) she is soliciting immediately upon making contact by telephone with the person who is the object of the telephone solicitation. (3)(a) If any residential, mobile, or telephonic paging device telephone subscriber notifies the department of his or her desire to be placed on a “no sales solicitation calls” listing indicating that the subscriber does not wish to receive unsolicited telephonic sales calls, the department shall place the subscriber on that listing. . . . (4) No telephone solicitor [person who makes sales calls by, including, but not limited to, use of automated dialing or recorded message devices] shall make or cause to be made any unsolicited telephonic sales call to any residential, mobile, or telephonic paging device telephone number if the number for that telephone appears in the then-current quarterly listing published by the department. . . . (5) A telephone solicitor or other person may not initiate an outbound telephone call, text message, or voicemail transmission to a consumer, business, or donor or potential donor who has previously communicated to the telephone solicitor or other person that he or she does not wish to receive an outbound telephone call, text message, or voicemail transmission:(a) Made by or on behalf of the seller whose goods or services are being offered; . . . (b) Nothing herein prohibits the use of an automated telephone dialing system with live messages if the calls are made or messages given solely in response to calls initiated by the persons to whom the automatic calls or live messages are directed or if the telephone numbers selected for automatic dialing have been screened to exclude any telephone subscriber who is included on the department’s then-current “no sales solicitation calls” listing or any unlisted telephone number, or if the calls made concern goods or services that have been previously ordered or purchased. . . . 66 ‹#›
Ready to engage your members via text? www.consejosano.com Kim Howell, VP of Growth kim@consejosano.com 77 ‹#›
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