A Legal Guide to PRIVACY AND DATA SECURITY 2025

On April 1, 2021, the Supreme Court issued its highly anticipated decision in Facebook, Inc v. Duguid, resolving a long-standing circuit split on the definition of an automatic telephone dialing system (ATDS or autodialer) under the TCPA. The Court ruled that to qualify as an ATDS under the TCPA, a device must have the capacity to either (1) store a telephone number using a random or sequential number generator or (2) produce a telephone number using a random or sequential number generator. Reversing the Ninth Circuit, the Court concluded that merely having the capacity to store numbers and dial them automatically is not enough to make a device qualify as an ATDS. This case had been anticipated by many who have had to figure out what they could do when using phone calls or text messaging to reach customers. Facebook was accused of violating the TCPA’s prohibition on using an ATDS. Duguid claimed that Facebook sent him text messages over a period of 10 months without his consent alerting him that someone was trying to access his Facebook account even though he did not have a Facebook account. Telemarketing and Consumer Fraud and Abuse Prevention Act [15 U.S.C. §§ 6101-6108] The FTC and the FCC have promulgated several rules relating to deceptive telemarketing practices. The FTC’s Telemarketing Sales Rule gives effect to the Telemarketing and Consumer Fraud and Abuse Prevention Act . The Telemarketing Sales Rule requires sellers to provide consumers with all information that would likely be material to the consumers’ choice of goods or services, including information on cost and quantity, material restrictions, limitations or conditions, refund policies, and features such as free trial offers. The Telemarketing Sales Rule also prevents sellers from misrepresenting such material information. For outbound sales calls or upsells, these disclosures must be made promptly. Special requirements apply to prize promotions, credit card loss protection plans, and debt relief services. The Telemarketing Sales Rule also contains a number of privacy protections. These rules prevent calling numbers that are on the National Do Not Call Registry or on that seller’s do-not-call list; denying or

48

Made with FlippingBook - Online Brochure Maker