One of the most complex issues under the Telephone Consumer Protection Act (TCPA) is determining whether the technology utilized qualifies as an “automatic telephone dialing system” (ATDS) or “autodialer.”  The TCPA prohibits using an ATDS to make calls to cell phone numbers, absent prior consent of the called party.  An ATDS  is generally define as equipments which has the capacity to store or generate telephone numbers randomly or sequentially and dial those numbers.
The U.S. District Court for the Southern District of California recently held that the electronic platform for sending promotional text messages was not an autodialer because it could not generate random or sequential numbers.  While guidance from the Federal Communications Commission, as well as decisions at the district and circuit court level, have focused on whether a system has the capacity to generate and dial numbers without human intervention (even if the numbers came from a defined list, as opposed to randomly generated), the Court here distinguished such reasoning.
Here, the plaintiff joined defendant’s fitness center in 2012.  The defendant utilized a 3rd-party, web-based platform to then send promotional text messages to members and prospective members on their cell phones.  The system utilized could enter numbers manually; by collecting numbers individuals entered on the defendant’s website, or by collecting numbers when individuals responded via text message to marketing campaigns.  The plaintiff allegedly received 3 unwanted text message and brought suit.  Thereafter, the defendant moved for summary judgment asserting that the platform used with not an ATDS and the Court agreed.
Despite FCC guidance which states that equipment that can generate and dial numbers without human intervention would qualify as an ATDS, whether or not the numbers are randomly or sequentially generated, the Court found that the definition of ATDS within the statute is clear and unambiguous and the FCC does not have rule making authority.  Agreeing with some other cases which have addressed this issue, the Court found that “capacity” means the systems current capabilities, not its “potential.”  The Court said that focusing on “capacity” would subject a wide array of devices to the TCPA (e.g. all computers and smartphones).
As the defendant’s platform required human intervention, it was not an ATDS and thus the Court granted summary judgment in defendant’s favor.
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Photo of Jason C. Gavejian Jason C. Gavejian

Jason C. Gavejian is a principal in the Berkeley Heights, New Jersey, office of Jackson Lewis P.C. and co-leader of the firm’s Privacy, Data and Cybersecurity practice group. Jason is also a Certified Information Privacy Professional (CIPP/US) with the International Association of Privacy…

Jason C. Gavejian is a principal in the Berkeley Heights, New Jersey, office of Jackson Lewis P.C. and co-leader of the firm’s Privacy, Data and Cybersecurity practice group. Jason is also a Certified Information Privacy Professional (CIPP/US) with the International Association of Privacy Professionals.

As a Certified Information Privacy Professional (CIPP/US), Jason focuses on the matrix of laws governing privacy, security, and management of data. Jason is co-editor of, and a regular contributor to, the firm’s Workplace Privacy, Data Management & Security Report blog.

Jason’s work in the area of privacy and data security includes counseling international, national, and regional companies on the vast array of privacy and security mandates, preventive measures, policies, procedures, and best practices. This includes, but is not limited to, the privacy and security requirements under state, federal, and international law (e.g., HIPAA/HITECH, GDPR, California Consumer Privacy Act (CCPA), FTC Act, ECPA, SCA, GLBA etc.). Jason helps companies in all industries to assess information risk and security as part of the development and implementation of comprehensive data security safeguards including written information security programs (WISP). Additionally, Jason assists companies in analyzing issues related to: electronic communications, social media, electronic signatures (ESIGN/UETA), monitoring and recording (GPS, video, audio, etc.), biometrics, and bring your own device (BYOD) and company owned personally enabled device (COPE) programs, including policies and procedures to address same. He regularly advises clients on compliance issues under the Telephone Consumer Protection Act (TCPA) and has represented clients in suits, including class actions, brought in various jurisdictions throughout the country under the TCPA.

Jason represents companies with respect to inquiries from the HHS/OCR, state attorneys general, and other agencies alleging wrongful disclosure of personal/protected information. He negotiates vendor agreements and other data privacy and security agreements, including business associate agreements. His work in the area of privacy and data security includes counseling and coaching clients through the process of investigating and responding to breaches of the personally identifiable information (PII) or protected health information (PHI) they maintain about consumers, customers, employees, patients, and others, while also assisting clients in implementing policies, practices, and procedures to prevent future data incidents.

Jason represents management exclusively in all aspects of employment litigation, including restrictive covenants, class-actions, harassment, retaliation, discrimination, and wage and hour claims in both federal and state courts. He regularly appears before administrative agencies, including the Equal Employment Opportunity Commission (EEOC), the Office for Civil Rights (OCR), the New Jersey Division of Civil Rights, and the New Jersey Department of Labor. Jason’s practice also focuses on advising/counseling employers regarding daily workplace issues.

Jason’s litigation experience, coupled with his privacy practice, provides him with a unique view of many workplace issues and the impact privacy, data security, and social media may play in actual or threatened lawsuits.

Jason regularly provides training to both executives and employees and regularly speaks on current privacy, data security, monitoring, recording, BYOD/COPE, biometrics (BIPA), social media, TCPA, and information management issues. His views on these topics have been discussed in multiple publications, including the Washington Post, Chicago Tribune, San Francisco Chronicle (SFGATE), National Law Review, Bloomberg BNA, Inc.com, @Law Magazine, Risk and Insurance Magazine, LXBN TV, Business Insurance Magazine, and HR.BLR.com.

Jason is the co-leader of Jackson Lewis’ Hispanic Attorney resource group, a group committed to increasing the firm’s visibility among Hispanic-American and other minority attorneys, as well as mentoring the firm’s attorneys to assist in their training and development. He also previously served on the National Leadership Committee of the Hispanic National Bar Association (HNBA) and regularly volunteers his time for pro bono matters.

Prior to joining Jackson Lewis, Jason served as a judicial law clerk for the Honorable Richard J. Donohue on the Superior Court of New Jersey, Bergen County.