ABA, Trade Groups Call for Litigation Relief under TCPA

The American Bankers Association and a coalition of business trade associations yesterday urged the House Judiciary Committee to rein in the incentives created for disruptive private litigation under the Telephone Consumer Protection Act. An outdated, 26-year-old law that no longer reflects the modern telecom environment, TCPA has been “manipulated” by trial lawyers, the groups said.

“[A]s of 2014, the average TCPA plaintiff was awarded $4.12, while the average attorney payout was $2.4 million,” the groups wrote. “These large paydays have only escalated litigation filings year-after-year. Between 2010 and 2016, there was a 1,272 percent increase in case filings.” The groups urged Congress to pursue reform to TCPA that would protect companies from the risk of a major class action lawsuit when they use phones and text messages to contact their customers.