Posted by Chris Alarie on Mon, 01/11/2021 - 09:37
As we have covered previously, the emerging cannabis industry has become a major target for Telephone Consumer Protection Act (TCPA) litigation. A recent case from Nevada serves as an illustrative example of the sorts of circumstances that lead to these lawsuits.
According to the complaint, two women allege that they visited a cannabis dispensary in Las Vegas. In order to enter the dispensary, they were asked to give their phone numbers. The women complied and entered the store. Afterwards, the dispensary sent them numerous text messages, continuing to do so for months.
The two women filed a class action—MADELENE STANLEY and KATHERINE KELSCH, individually and on behalf of all others similarly situated vs. TERRA TECH CORP.; and MEDIFARM LLC—alleging these messages violate the TCPA. The argument is that, since the women were required to offer their phone numbers in order to enter the business, the dispensary did not obtain the necessary consent to send the messages.
While it remains to be seen if this class action will succeed, it should serve as a warning to cannabis business that they are being targeted for TCPA lawsuits.