The Cash App class action settlement addresses legal claims against Block, Inc., the parent company of Cash App, for allegedly sending unsolicited spam text messages to users in Washington state. The proposed settlement amounts to $12.5 million and aims to compensate affected consumers who received unwanted referral text messages from Cash App’s “Invite Friends” program between November 14, 2019, and the latest date of data collection. This settlement highlights issues surrounding consumer protection laws related to electronic communications and corporate adherence to those laws.
Background of the Cash App class action settlement:
The lawsuit was filed in November 2023 by Kimberly Bottoms, a Washington resident who alleged that Cash App violated the Washington Consumer Electronic Mail Act and the Washington Consumer Protection Act by incentivizing users to send unsolicited text messages via Cash App’s referral program. The texts promoted the app’s usage and rewards for referrals but were sent without proper consent to many recipients, resulting in legal scrutiny.
The settlement reflects the alleged breach of state laws designed to protect residents from spam and unsolicited commercial messages, targeting practices common in digital marketing but subject to strict consent requirements under Washington law.
Details of the Cash App class action settlement terms and conditions:
The Cash App settlement agreement provides for a $12.5 million fund that will be distributed among eligible class members who received the unsolicited texts and submit valid claims. Estimates suggest there are approximately 2 million affected Washington state phone numbers, which could translate into individual payments ranging between $88 and $147 per claimant, depending on the number of valid claims submitted.
The settlement includes provisions for notifying potential class members through emails and physical mail, and claimants must attest that their phone number matches records of texts sent through Cash App’s referral program. The agreement does not apply to consumers who consented to receive such messages beforehand. Confidentiality and release clauses typical of class action settlements apply, releasing Block, Inc. from further liability related to these claims upon final settlement approval.
Legal basis and relevant laws influencing the settlement:
The settlement was rooted in violations of the Washington Consumer Electronic Mail Act and the Washington Consumer Protection Act. The former prohibits sending unsolicited commercial electronic messages without recipient consent, while the latter forbids unfair or deceptive business practices. These laws protect consumer privacy and regulate electronic marketing tactics.
The legal framework includes considerations of consent for electronic communications and corporate responsibility for indirect marketing campaigns via user-driven referral programs. The case emphasized that companies can be held liable for incentivizing users to send messages that violate state law, even if sent by third parties.
Impact of the Cash App class action settlement on the involved parties and industry:
The settlement provides monetary relief to affected Cash App users in Washington and serves as a precedent emphasizing compliance with electronic marketing and consumer protection laws. Block, Inc., while not admitting wrongdoing, has recognized the financial and reputational costs of the matter, prompting closer attention to user privacy and marketing practices in the digital payment sector.
For the payments and fintech industry, the settlement underscores the risks associated with referral programs and unsolicited communications. It encourages companies to develop stricter controls and transparent consent processes to avoid consumer backlash and legal challenges.
Current status and recent developments related to the Cash App class action settlement:
The settlement received preliminary court approval in late July 2025, with a final approval hearing scheduled for December 2, 2025. The official settlement website to submit claims was expected to be launched within 30 days after preliminary approval, and class members are given at least 90 days to file claims.
Notification efforts include mail and email outreach to potential claimants. The payout timeline depends on claim verifications and court approval but is anticipated to distribute funds by late 2025 or early 2026. The case remains monitored by consumer protection advocates and legal observers due to its implications for digital marketing practices.
Advice for consumers and business consequences stemming from the settlement:
Consumers who suspect they received unsolicited referral texts from Cash App in Washington should check eligibility and submit claims promptly to receive compensation. Being aware of one’s rights under consumer protection laws is crucial when it comes to unsolicited digital communications.
Businesses are advised to review their referral and marketing programs to ensure compliance with state and federal laws governing electronic messaging. Implementing robust opt-in consent procedures and carefully monitoring third-party marketing tactics can mitigate legal risks and safeguard company reputation in a competitive digital marketplace.
Conclusion summarizing the significance and future outlook of the settlement
The Cash App class action settlement represents a key legal outcome highlighting the balance between digital marketing ambitions and consumer privacy protections. By resolving allegations through a substantial financial settlement, it reinforces the necessity for businesses to adhere strictly to consent requirements in electronic communications. The case is likely to influence future corporate compliance strategies and regulatory enforcement across the fintech and broader digital communication industries.
Future outlooks suggest greater vigilance and transparency in digital referral programs and marketing outreach, with regulators and courts poised to hold companies accountable for unsolicited commercial communications. The settlement serves as a reminder of the importance of respecting consumer rights and the evolving legal landscape governing digital interactions.
