Jiffy Lube agreed to settle $47 million lawsuit based on sending unsolicited promotional texts messages to customers.
Jiffy Lube recently made a mistake that cost $47 million because of a text message spam lawsuit that violated the Telephone Consumer Protection Act (TCPA), all which could have been avoided if it followed a few simple rules.
Do research and review proposed use cases with qualified legal counsel in your area to make sure that you comply with all applicable laws.
Get consent from a customer or each end user before sending any communication to them, for marketing or other non-essential communications .
After Jiffy Lube blasted unsolicited SMS messages advertising a “1 time offer” for 45% off an oil change to its many customers, Most people will wonder what is the problem with the offer? No, matter of fact the deal was too good that many of the customer used it to get their oil changed. But here is where it get exciting, Jiffy Lube did not follow best practice on acquiring mobile opt-ins from their customers that were willing to receive these kind of offers. It’s said that the phone numbers used where from customers recipients from previous purchase where phone numbers where entered on invoices.
Due to violation of the TCPA terms ‘companies and businesses are prohibited from contacting people for promotions using automatic telephone dialing systems to make calls to cell phones unless the owners have consented”, and texting against MMA best practices, Jiffy Lube agreed to settle the law suite and paid approximately $47 million in services ($35 million in cash value) to class members. Jiffy Lube agreed to obtain and retain “informed written consent” through “affirmative action on the part of the consumer through a clear statement regarding the receipt of text message advertisements.”
This is one of the biggest mistakes as an SMS Marketing Specialist consistently see smaller to medium sized businesses do trying to replicate campaigns they have seen from this larger brands like Jeffylube, coca-cola, Pepsi etc without a strategy of their own. Well, from Jeffylube’s incident. Businesses need to learn to be compliant and avoid this mistake by doing a few simple things that should help them make the right decisions when creating an SMS marketing campaign.