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Published: Nov. 6, 2019 | Blog

How can arbitration clauses save you from a lawsuit for SMS marketing?

In a recent court case, a company that uses SMS marketing messages avoided a lawsuit for violating the TCPA due to an arbitration clause in its terms and conditions.

One user tried to sue for excessive sending of advertising messages, but the Court defaulted to arbitration because the company expressly stated that the Federal Arbitration Act will “govern the interpretation and enforcement of” the resolution of disputes. In a nutshell, this company included a clause in its terms and conditions that save it from dealing with many TCPA lawsuits and headaches.

The best ways for any company to get similar results while using SMS marketing are:

First,

to have a clear arbitration clause in the terms and conditions, allowing any disputes to be settled outside of court;

And second,

to have an airtight method of gaining express consent from users.


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