The Everything Breaks TCPA class action settlement resolves allegations that the warranty company violated the Telephone Consumer Protection Act (TCPA) by making unsolicited telemarketing calls to consumers who had registered on the National Do Not Call Registry. This settlement offers financial compensation to affected individuals and highlights important consumer protections regarding unsolicited phone calls in the digital age.
Background of the Everything Breaks TCPA Settlement
The case originated when plaintiffs accused Everything Breaks, a company offering protection plans for electronics, appliances, and vehicles, of placing telemarketing calls to individuals despite their phone numbers being listed on the National Do Not Call Registry or having previously requested the company to stop calling. The TCPA prohibits such unsolicited calls to protect consumer privacy and control unwanted communications.
Key factors that led to the settlement discussions include:
- Multiple unsolicited telemarketing calls made by Everything Breaks between March 1, 2023, and March 15, 2024.
- The target phone numbers appearing on the National Do Not Call Registry for at least 31 days when calls were made.
- Calls flagged as “Do Not Call,” “DNC,” or “Already Covered” by Everything Breaks’ own records but still placed.
- Consumer claims asserting violations of the TCPA and resulting invasion of privacy and unwanted disturbances.
Details of the Everything Breaks TCPA Settlement Terms and Eligibility
Everything Breaks agreed to a $995,000 nationwide class action settlement to resolve these claims without admitting wrongdoing. The settlement terms include:
- Settlement Fund: $995,000 to be distributed among eligible class members after deducting administration costs, attorneys’ fees, and a service award to the class representative.
- Eligibility: Individuals who received two or more telemarketing calls from Everything Breaks during the settlement class period, on phone numbers that were on the National Do Not Call Registry for at least 31 days or marked as “Do Not Call” in the company’s records.
- Payment Estimates: Each claimant submitting a valid, timely claim is expected to receive between $36 and $144, depending on the number of claims.
- Claim Submission: Claimants must submit a valid claim form by the deadline of April 9, 2025, to qualify for payment.
Legal Framework and Reasoning Behind the Everything Breaks TCPA Settlement
The settlement addresses alleged violations of the Telephone Consumer Protection Act, which was enacted to safeguard consumer privacy by restricting telemarketing calls and automated dialing. Specifically, the TCPA prohibits calling consumers who have registered on the National Do Not Call Registry or who have requested that a company not call them.
The central legal issues in this case involved:
- Whether Everything Breaks unlawfully made repeated telemarketing calls to individuals despite knowing their numbers were on the Do Not Call Registry.
- The adequacy of defendants’ internal processes to respect consumers’ do-not-call requests.
- Potential statutory damages for each call placed in violation of TCPA provisions, as well as attorney fees and litigation costs.
By settling, Everything Breaks avoided trial risks while providing restitution for affected consumers and agreeing to improve compliance measures.
Impact of the Everything Breaks TCPA Settlement on Consumers and Businesses
This settlement reinforces consumer protection against unsolicited telemarketing calls and sets a precedent for accountability in marketing practices. Its impacts include:
- For Consumers: Provides monetary compensation for unwanted calls that disturbed privacy and daily life.
- For Businesses: Highlights the importance of compliance with telemarketing laws and encourages better management of customer contact preferences.
- Industry-Wide Effect: Encourages companies in warranty, insurance, and telemarketing sectors to audit and refine practices to avoid TCPA violations and costly litigation.
- Public Trust: Restores consumer trust by demonstrating that violators can be held accountable and consumers compensated.
Current Status and Updates on the Everything Breaks TCPA Settlement
The settlement received preliminary court approval on December 11, 2024, with the final approval hearing scheduled for June 4, 2025. Key timelines and processes include:
- Claimants must submit their valid claim forms by April 9, 2025, to be eligible for payments.
- The exclusion and objection deadline for class members who wish to opt out or object was March 25, 2025.
- After final court approval, settlement checks will be mailed to valid claimants; delays may occur if appeals arise.
- Settlement administration is overseen by an independent administrator ensuring the fair handling of claims and distribution.
Consumer Guidance and Claims Process for the Everything Breaks TCPA Settlement
To participate and receive compensation, affected individuals should follow these steps:
- Confirm Eligibility: Verify if two or more telemarketing calls were received from Everything Breaks during the settlement period on a number registered on the Do Not Call List or marked “Do Not Call.”
- Submit a Claim: Complete the claim form online or via mail by April 9, 2025. Provide requested information honestly and accurately.
- Beware of Scams: Use only official settlement websites or mail addresses. Do not pay to submit a claim or share sensitive financial information beyond what is necessary.
- Watch Deadlines: Late claims are typically not accepted, so timely submission is essential.
Conclusion: Significance and Future Outlook of the Settlement
The Everything Breaks TCPA class action settlement underscores the critical role of consumer rights in the telemarketing landscape and the enforcement power of the Telephone Consumer Protection Act. It provides a model for how legal remedies can restore balance where companies may have overstepped boundaries in contacting consumers. Going forward, this settlement is likely to promote stronger telemarketing compliance and raise awareness among companies to respect do-not-call requests rigorously, thereby protecting consumer privacy in an era of pervasive digital communications.
