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Answering the Call: Supreme Court to Determine the Definition of an ATDS Under the TCPA

By Mary M. Gardner, Venable LLP & Leonard L. Gordon on July 10, 2020
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Today the Supreme Court granted certiorari in Facebook, Inc. v. Duguid where it will resolve a circuit split and decide the issue of whether an “automated telephone dialing system” (“ATDS” or “autodialer”) under the Telephone Consumer Protection Act (“TCPA”) encompasses any device that can “store” and “automatically dial” telephone numbers, even if the device does not “us[e] a random or sequential number generator.” In other words, the Court will determine whether a caller uses an autodialer to place a call or send a text message if the platform being used merely dials without human involvement from a stored list of telephone numbers (the minority view), or whether the platform itself must randomly or sequentially generate the telephone numbers that it dials (the majority view).

The decision below reaffirmed the Ninth Circuit’s and, more recently, Second Circuit’s expansive readings of the TCPA’s ATDS definition — that is, merely having the capacity to store and dial numbers automatically suffices for an ATDS. This is in stark contrast to cases in the Seventh, Eleventh, and Third Circuits, which have held that, to be an autodialer under the statute, a device must have the capacity to “store or produce” numbers “using a random or sequential number generator” and to dial those numbers. In those three circuits, merely dialing from a stored list of targeted telephone numbers is not enough to constitute an autodialer.

Notably, the Supreme Court refrained from tackling the other question petitioner presented: whether the TCPA is an unconstitutional restriction of speech under the First Amendment. As we discussed earlier this week, the Court struck down the Government Debt Exception to the TCPA as unconstitutional, severed it, and left the remainder of the TCPA in place.

As the disparity among the circuits shows, the Supreme Court’s decision in Duguid will have a pivotal impact on the scope of the TCPA’s ATDS definition. Stay tuned as we continue to monitor this case throughout the Supreme Court’s upcoming term.

Mary M. Gardner

Mary M. Gardner helps clients identify, evaluate, and prioritize their risks; implement practices to minimize, monitor, and control those risks; and find satisfactory outcomes when those risks turn into potential liabilities. Mary is a versatile counselor, litigator, and negotiator, representing companies in all…

Mary M. Gardner helps clients identify, evaluate, and prioritize their risks; implement practices to minimize, monitor, and control those risks; and find satisfactory outcomes when those risks turn into potential liabilities. Mary is a versatile counselor, litigator, and negotiator, representing companies in all aspects of risk management, including litigation, arbitration, mediation, and counseling.

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Photo of Leonard L. Gordon Leonard L. Gordon

Len Gordon, chair of Venable’s Advertising and Marketing Group, is a skilled litigator who leverages his significant experience working for the Federal Trade Commission (FTC) to help protect his clients’ interests and guide their business activity. Len regularly represents companies and individuals in…

Len Gordon, chair of Venable’s Advertising and Marketing Group, is a skilled litigator who leverages his significant experience working for the Federal Trade Commission (FTC) to help protect his clients’ interests and guide their business activity. Len regularly represents companies and individuals in investigations and litigation with the FTC, state attorneys general, the Department of Justice (DOJ), and the Consumer Financial Protection Bureau (CFPB). Len also represents clients in business-to-business and class action litigation involving both consumer protection and antitrust issues. He also counsels clients on antitrust, advertising, and marketing compliance issues.

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  • Posted in:
    Technology and AI
  • Blog:
    All About Advertising Law
  • Organization:
    Venable LLP
  • Article: View Original Source

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