Cash App users who received unsolicited text messages may soon be eligible for compensation following a $12.5 million settlement related to alleged violations of telemarketing and consumer protection laws. The settlement resolves claims that the popular mobile payment platform engaged in deceptive practices by sending bulk texts without proper consent, potentially violating the Telephone Consumer Protection Act (TCPA). Eligible customers are expected to receive refunds ranging from a few dollars up to as much as $147 per person, depending on their interaction history and the nature of their complaints. The settlement, approved by a federal court, aims to provide restitution to users affected by the messaging practices, while also imposing certain operational restrictions on the company moving forward.
Background of the Settlement
Alleged Violations and Court Findings
The lawsuit, filed in 2022, accused Cash App — operated by Block, Inc., formerly Square, Inc. — of violating federal laws by sending mass text messages to consumers without their explicit consent. Plaintiffs argued that the company used automated systems to bombard users with promotional and transactional texts, infringing upon the rights protected under the TCPA. The court found that Cash App’s messaging practices, if proven, could constitute a breach of federal regulations designed to prevent unwanted telemarketing calls and texts.
Settlement Details
The settlement, announced in December 2023, includes a payment fund of $12.5 million to compensate affected consumers. Cash App denies any wrongdoing but agreed to the settlement to avoid prolonged litigation and potential damages. The agreement also mandates improvements in messaging practices, requiring clearer disclosure of consent terms and an opt-out process for recipients.
Who Qualifies for the Settlement
| Eligibility Criteria | Description |
|---|---|
| Received Unsolicited Texts | Users who received promotional or transactional texts from Cash App without prior consent |
| Active Cash App Users (as of date of notification) | Individuals with an active account who can verify receiving such messages |
| Submitted a Claim (if required) | Participants may need to complete a claim form to receive compensation, depending on the settlement process |
How Much Can Claimants Expect to Receive?
Based on the settlement terms, individual payouts will vary depending on the number of claims filed and the extent of each user’s experience with the unsolicited texts. The settlement website indicates that some eligible participants could receive up to $147, while others may receive smaller amounts, such as $25 or $50. The distribution aims to address both minor and more significant instances of unwanted messaging, offering compensation proportional to the alleged infringement.
Estimated Payment Breakdown
- $147: Highest payout for users who received numerous texts over an extended period and filed valid claims
- $50: For users who experienced multiple unsolicited messages but did not take further action
- $25: For users who received a single or few texts and submitted a claim
How to Claim Your Settlement
Participants in the settlement will likely need to visit the official settlement website to submit a claim form. The process generally involves verifying account information and providing details about the unsolicited messages received. Claim deadlines are typically set several months after the settlement approval, giving users ample time to participate. Cash App users are encouraged to monitor official communications for updates on the filing process and payout schedules.
Additional Remediation Measures
Besides monetary compensation, the settlement requires Cash App to implement stricter protocols regarding user consent and messaging practices. The company has committed to enhancing its internal compliance procedures, including:
- Obtaining explicit consent before sending marketing texts
- Providing clear opt-out options in every message
- Maintaining records of user preferences and consent
Legal and Consumer Impact
This settlement underscores ongoing efforts by federal regulators to curb intrusive telemarketing practices, especially with the rise of mobile payment platforms that regularly communicate with users. The case also highlights the importance of transparency and consent in digital communications, aligning with recent consumer protection initiatives. Industry experts note that companies like Cash App are increasingly scrutinized for their outreach methods, with potential repercussions for non-compliance.
Resources and Additional Information
Consumers who believe they received unsolicited texts from Cash App are advised to review official settlement notices and consult the dedicated webpage for claims procedures. As digital communication regulations evolve, staying informed about rights and recourse options remains essential for mobile users.
Frequently Asked Questions
What is the recent settlement involving Cash App customers?
The recent settlement involves Cash App customers receiving checks of up to $147 as part of a $12.5 million payout related to a texting dispute.
How much money can eligible Cash App customers expect to receive?
Eligible customers can receive checks worth up to $147, depending on their specific case and eligibility criteria within the $12.5 million settlement.
Why is Cash App issuing these checks?
The checks are being issued following a settlement over claims that Cash App improperly sent text messages to users, violating certain privacy regulations.
How can Cash App customers claim their settlement check?
Customers need to submit a claim form through the official settlement website to receive their check. Instructions and eligibility details are provided there.
When will Cash App customers start receiving their settlement payments?
Eligible customers can expect to start receiving their checks within the coming months, once the settlement processing is complete and payments are distributed.
