Does your cannabis company use text message marketing to build customer relationships through a loyalty program? That common practice could bankrupt your company.
It is a shock to many that text message marketing can expose you to staggering damages claims for failing to comply with a federal law called the Telephone Consumer Protection Act (TCPA) and similar state laws like Washington’s Commercial Electronic Mail Act (CEMA). There is currently an onslaught of plaintiffs’ attorneys bringing class-action lawsuits against cannabis companies that fail to comply with the specific text-marketing requirements of the TCPA. These lawsuits have raked in millions in damages and settlements in 2020 and will continue to do so in 2021.
Many cannabis companies that receive a TCPA complaint initially believe that these are nuisance or “troll” lawsuits. Unfortunately, damages can range from $500 to $1500 per text or call made in violation of the law. If you think about how many marketing texts you send out per day, and how many people you text, damages could be enough to put your company out of business. Continue Reading