Jiffy Lube agreed to pay $47 million in services (or the equivalent of $35 million cash) to settle multiple class actions brought by recipients of spam texts.
The case was filed last year by a group of plaintiffs who alleged they received spam text messages from the oil change company in violation of the Telephone Consumer Protection Act. The text message read: “JIFFY LUBE CUSTOMERS 1 TIME OFFER: REPLY Y TO JOIN OUR ECLUB FOR 45% OFF A SIGNATURE SERVICE OIL CHANGE! STOP TO UNSUBMSG&DATA RATES MAY APPLY T&C: JIFFYTOS.COM.”
One year later the parties filed a joint motion seeking preliminary approval of a settlement.
Jiffy Lube agreed to provide $17.29 discount certificates off any service to the estimated 2.3 million class members. After an 18-month period, the offer expires but the certificates can still be redeemed for $12.97 in cash. The company will also pay $5,000 to each class representative, $4.75 million to class counsel, and cover the administrative costs of settlement.
In addition, the defendant agreed “to ensure that informed written consent be obtained by affirmative action on the part of the consumer through a clear statement regarding the receipt of text message advertisements.” Jiffy Lube will also be required to retain proof of all consumer consent to receive text messages ads.
Calling the proposed settlement “an exceptional result,” the parties requested the court’s preliminary approval of the deal.
To read the proposed settlement in In re Jiffy Lube, click here.
Why it matters: Class action suits alleging violations of the TCPA are proliferating and can result in sizable settlements, as evidenced by the parties’ agreement in the Jiffy Lube settlement. Marketers should be sure to receive prior, express consent from recipients before sending text messages or face their own potentially costly lawsuit.