Block, the parent company of Cash App, agreed to a $12.5 million settlement related to a class-action lawsuit over unsolicited spam text messages sent via Cash App’s “Invite Friends” referral program.
The lawsuit, filed by a Washington state resident in November 2023, alleged that Cash App violated Washington state laws by sending promotional texts without recipients’ explicit consent.
Key details of the settlement:
The settlement applies only to Washington state residents who received these unsolicited referral text messages between November 14, 2019, and an end date yet to be determined.
Approximately 2 million people may be eligible, based on available phone records.
Eligible claimants can expect a payout ranging from $88 to $147, depending on how many people participate in the settlement.
Block did not admit any wrongdoing but opted to settle the suit.
Notifications and claim forms are expected to be sent via email and physical mail to eligible individuals soon.
There is no deadline for joining the settlement yet, though one will likely be established.
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About the lawsuit:
The legal basis was Washington’s Consumer Electronic Mail Act and Consumer Protection Act, which prohibit unsolicited commercial electronic messages without prior consent.
The texts were allegedly sent under users’ phone numbers but initiated and composed by Cash App to promote app downloads via referrals.
For updates and to check if you qualify, keep an eye on official settlement communications or websites like ClassAction.org. This settlement is part of broader scrutiny and regulatory actions against Cash App related to consumer protection and data security.
How will the settlement affect Cash App users’ privacy protections
The recent $12.5 million settlement related to unsolicited Cash App text messages includes important privacy protections and reforms to enhance user consent and security:
Cash App has committed to implementing stronger consent procedures before sending any promotional or marketing messages, ensuring users explicitly opt-in rather than being auto-enrolled.
The company is required to maintain clear and accessible opt-out mechanisms for users to stop receiving such communications at any time.
As part of the settlement, Cash App will conduct routine external audits of its marketing and communication automation systems to verify compliance with privacy laws like the Telephone Consumer Protection Act (TCPA).
Cash App must provide periodic transparency reports to regulators and set up accountability measures to prevent recurrence of unauthorized or unsolicited messaging.
These reforms aim to strengthen overall consumer privacy protections, reduce spam, and rebuild trust with users who received unwanted texts.
Financial compensation is provided to affected individuals, but the settlement’s biggest long-term impact is the enhanced regulatory oversight and company commitment to better safeguard user privacy in marketing and communications.
In summary, the settlement will improve Cash App users’ privacy protections by requiring opt-in consent, enabling easy opt-out, increasing monitoring for compliance, and establishing accountability measures to avoid spamming users without permission.
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