Yahoo Could be Fined Hundreds of Millions for Text Spamming
Yahoo, the pioneers of messaging services over the internet, are surprisingly facing a class action lawsuit in a court in Chicago for sending out spam text messages to about half a million customers.
This might come as a surprise to you in today’s world that a company that big has been indulging in something like this. However, it is true that they regularly used to send out “welcome” messages to Sprint users back in 2013.
US District Judge Manish Shah of the federal court has ruled that these messages were spam and hence illegal under the Telephone Consumer Protection Act.
Interestingly, Yahoo has not denied this or challenged the claim that those messages were spam. They have, however, countered that under the class action lawsuit that is being filed, the damages levied upon them could be disproportionate to the actual problem that might have been caused by those messages.
They also alleged that the case shouldn’t be filed for other time periods as it promotes “piecemeal” litigation.
What actually happened was that Yahoo had a practice of sending these automated welcome messages to Sprint users when they were sent a message through their messenger service by any other person.
Claimants are regarding these messages as advertisement that was not authorized because of which, if Yahoo loses the case they could face damages of up to $1500 for every message sent.
The company is yet to respond to the lawsuit officially, but this is pretty big as the damages could rake up to hundreds of millions of dollars.