Unwanted Texts Lead to $12.5M Cash App Settlement: Millions of Americans utilize Cash App, a well-known peer-to-peer payment service, as part of a $12.5 million class action settlement over unsolicited commercial text texts. The complaint concerned text messages related to the “invite friends” or referral feature of the Cash App, which purportedly sent marketing-style messages to those who never consented to receive them. Growing worries about consumer privacy and stringent anti-spam legislation, particularly in Washington state, are brought to light by the settlement.
What is Cash App Settlement?
With the Cash App, customers may swiftly transfer and receive money via a mobile device. Its features have grown over time to include investment, referrals, and other financial tools. Referral schemes are prevalent on digital platforms, but this case brought up important issues regarding how these messages are conveyed and if appropriate consent is sought. According to the lawsuit, referral texts that advertise a business’s services can also be classified as marketing.
The significance of permission in mobile communications and digital marketing is highlighted by this case. It demonstrates that when referral messages promote a firm, they can still be seen as commercial advertising. The settlement strengthens customers’ current defenses against unsolicited text texts. It serves as a reminder to firms that their marketing strategies must adhere to all applicable state and federal rules, particularly when handling personal contact information.
Cash App Lawsuit: How to Claim $12.5M Settlement?
Bottoms v. Block, Inc. is the name of the lawsuit that was brought after citizens of Washington claimed to have received numerous promotional text messages. Despite not having subscribed to marketing communications, these texts urged recipients to download or sign up for the Cash App. The complaint claims that the messages were more deceptive because they looked like personal invitations and were automatically generated by Cash App’s referral system.
Strict Consumer Protection Laws in Washington State
When it comes to commercial electronic messages, Washington has some of the strictest restrictions in the country. These regulations are intended to shield locals against unsolicited advertising, spam, and improper use of their personal contact details. The plaintiffs claimed that even though the recipients had not granted authorization to be contacted, Cash App profited from the promotional texts since they enticed new users to sign up for the site. The central legal question in the case was this purported lack of consent.
Cash App Settlement News
Block Inc., the parent firm of Cash App, denies any misconduct. According to the corporation, there was no deliberate violation of consumer protection rules. However, Block Inc. decided to settle the dispute rather than carry on with drawn-out and costly litigation. Class action lawsuits frequently result in these kinds of settlements because they assist businesses in controlling financial risk and avoiding ambiguity without acknowledging blame.
How the $12.5 Million Settlement Operates?
A $12.5 million fund was established by the settlement to compensate those impacted. Court-approved legal fees, administrative costs, and service awards are deducted from the fund prior to any payments being made. The eligible applicants are then given the remaining sum. This implies that the number of legitimate claims that were authorized determines the individual payouts, which are not fixed.
Payment Amounts
Residents of Washington who qualify and file legitimate claims may be paid between $88 and $147. The overall number of claims that are authorized determines the precise amount that each individual receives. Individual payments will be reduced if a large number of people are eligible. Payments might be closer to the higher estimate if fewer claims are accepted. All qualified participants will receive an equitable share of the available monies thanks to this strategy.
Who Qualified for the $12.5M Cash App Settlement?
To ensure that only those who were impacted got compensation, eligibility was precisely determined. Claimants had to attest that they were residents of Washington at the time the unwelcome advertising texts were sent, as well as that they received them. Those who just used the Cash App but never got these texts were ineligible. Payment was also not available to anyone who did not file a claim by the deadline.
How to Claim Cash App Settlement 2025?
Those that qualified had to send in a claim form via mail or online in order to be compensated. Accurate contact information and eligibility confirmation were necessary on the form. Under pain of perjury, claimants had to attest that the information they provided was accurate. By taking this action, false claims were prevented and the proper recipients of settlement payments were guaranteed.
Members of the class have the choice to either opt out or object to the terms of the settlement. Those who opted out forfeited any claim to settlement funds but retained the ability to take individual legal action against the firm. Once the court gave final permission, those who did not object or opt out were bound by the settlement.
Distribution of Payments and Schedule
Payments are disbursed in accordance with the method chosen by each claimant during the claim procedure following final court approval. Payments and claim verification fall within the purview of the settlement administrator. Administrators may try redelivery in accordance with settlement rules if a payment fails because of inaccurate information. Certain receivers may receive money sooner than others due to different payment schedules.