In a win for telemarketers, a New York state appellate court ruled on August 8, 2005, that class actions could not be brought under the federal Telephone Consumer Protection Act, and dismissed a class action lawsuit seeking damages for “junk” faxes.
The court found that the TCPA provides for private rights of action only if permitted by state law and that, in this case, New York law does not allow such lawsuits. The decision stands in contrast to rulings by courts in other states, such as California, which have found that state law does permit TCPA class actions.
Before the 1991 enactment of the TCPA, many states, including New York, had laws on the books restricting unsolicited telemarketing. Those laws, however, had limited impact because states lack jurisdiction over interstate calls. The TCPA sought to close that gap. The act authorized state attorneys general to enforce the law, but permitted private rights of action, including class actions, only if allowed by a particular state.
Significance: The ruling is a significant win for telemarketers, who already have to contend with junk fax class actions in California and other states.