Marijuana Dispensary Faces Class Action Lawsuit

July 24, 2020

Overview

A Michigan cannabis dispensary is now facing a class action lawsuit claiming that it spammed customer’s cell phones with multiple text messages advertising the company’s cannabis products, in violation of the Telephone Consumer Protection Act (TCPA). Even after attempting to opt-out by replying “stop” to a message, the company continued to send automated texts. And this dispensary isn’t the only one facing these lawsuits. Consumers in multiple states have filed class actions claiming violation of the TCPA, stating that these kinds of marketing messages are only allowed if a customer has opted-in to the service. Otherwise, these mass-text marketing campaigns are telemarketing and may be a violation of the TCPA.

Even with rising competition, cannabis businesses should take care when evaluating their marketing strategies that they do not use overly-aggressive campaigns that violate the TCPA and expose them to class action lawsuits.

If you would like advice on protecting your cannabis business against TCPA claims, contact John Mackewich at 419-249-7103 or mackewich@marshall-melhorn.com.

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