Online payment apps and digital platforms have become a vital part of our everyday lives. Whether it’s sending money, paying bills, or making instant payments, these apps have made life much easier. But while technology brings convenience, it also brings some frustrating experiences. A recent case was seen in the United States, where the popular digital payment platform Cash App faced legal action over allegations of sending spam text messages.
As a result of this dispute, the company has accepted a $12.5 million (approximately ₹104 crore) settlement. Under this agreement, eligible users could receive payments of up to $147 (approximately ₹12,250).
What was the entire case?
Cash App was accused of sending promotional or referral SMS messages to users without their consent. Users had never consented to these messages. This case was filed as a class action suit in a US federal court.
Under the US Telephone Consumer Protection Act (TCPA), sending commercial or promotional messages to someone without their permission is illegal. This is why this matter reached the court and thousands of users objected.
What action did Cash App take?
Cash App did not admit its guilt in court, but the company decided it was best to settle to avoid a lengthy legal process. Therefore, it accepted a $12.5 million settlement.
This means that the company neither admitted its fault nor completely dismissed the users’ allegations. Rather, it took this step to resolve the matter quickly and avoid the complex court process.
The company’s objective was clear: to resolve the matter, but without admitting guilt.
Who is eligible for this settlement?
According to the terms of the settlement, the following people will be eligible for this payment:
- Those who received text messages from Cash App or its agents without their consent between 2018 and 2023.
- Those who received such messages from Cash App without registering themselves or signing up for a referral.
- Those who have filed or are planning to file a claim in this class action.
If you meet these criteria, you can claim this payment.
How much will users receive?
The company has set aside a total of $12.5 million. However, after deducting legal fees, administrative expenses, and other charges, the remaining amount will be distributed to eligible users.
Each user can receive a maximum of $147 (approximately ₹12,250). However, this amount is not fixed and will depend on the total number of claims.
If the number of claimants is large, the amount received by each person may be slightly less.
How to get this money?
If you live in the United States and believe you received unauthorized messages from Cash App, you can receive this money by filling out an online claim form.
The process is completely digital and easy. You just need to fill in your details and make sure you apply before the claim deadline.
Once your application is approved, payment will be made via direct deposit or check.
Are users in India or other countries eligible?
- No. This settlement is only for residents of the United States (U.S.).
- Users in India or other countries who downloaded Cash App are not eligible for this claim.
However, this case certainly teaches people around the world how important digital privacy and consent are.
Lessons from this case
- This case serves as a stark reminder that no company or app can send you promotional messages without your permission.
- If someone does so, you can take legal action or join a class action lawsuit and receive compensation.
- In today’s digital age, when numerous companies monitor our data, mobile numbers, and online behavior, it’s crucial to be vigilant about our digital privacy.
What is a class action lawsuit?
A class action lawsuit is a legal process in which an individual or a group of individuals files a lawsuit against a large company or organization, but the lawsuit is filed on behalf of hundreds or thousands of individuals.
The advantage of this is that everyone has a chance to seek justice together, and the company has to respond on behalf of a larger group.
In this case, many users received spam messages, so they collectively filed a single lawsuit—called a class action suit.
Impact on Cash App’s Image
Cash App is already a popular fintech company in the US, with millions of users. But this controversy has certainly impacted its brand image.
Even though the company hasn’t admitted its wrongdoing, the settlement certainly signals that it wants to put the dispute to rest and move forward.
In the future, companies will need to pay greater attention to user consent and transparency to avoid such incidents.
Conclusion
This $12.5 million settlement by Cash App is a lesson for digital platforms worldwide. It demonstrates the importance of user digital consent.
Companies must understand that sending messages or emails without users’ permission is a misstep.
FAQs
A. It’s a settlement for users who received spam text messages from Cash App without consent, violating TCPA laws.
A. Eligible users may receive up to $147, depending on the number of valid claims.
A. Anyone in the U.S. who received unwanted Cash App text messages between 2018 and 2023.
