The Supreme Court removed the requirement that federal district courts follow the FCC's interpretation of the TCPA, giving districts independent authority to interpret and enforce TCPA provisions. The change threatens predictability by creating a potential patchwork of inconsistent court rulings across jurisdictions and increasing litigation risk. Lenders now face exposure to substantial fines that can affect licensing and business viability. Courts must reevaluate TCPA fundamentals such as expressed written consent, revocation methods, and which communications fall under protection. Multistate lenders may need multiple communication processes or to adopt the strictest standards, disrupting longstanding uniform compliance practices.
The Supreme Court's June 20th decision in McLaughlin Chiropractic Associates, Inc. v. McKesson Corp. ruled that federal district courts no longer have to follow the Federal Communication Commission's (FCC) interpretation of the Telephone Consumer Protection Act (TCPA). TCPA is a federal law that regulates how businesses can contact consumers by phone or text, requiring consent for certain communications and imposing strict penalties for violations.
Now, district courts have more authority to interpret and enforce these regulations, which can lead to increased legal challenges and an unpredictable patchwork of court interpretations. If lenders fail to comply, they risk facing significant fines that impact their license, and therefore the livelihood of their business. Courts across the country now must revisit the fundamentals of TCPA's guidance, including what qualifies as expressed written consent, how consent is revoked, and what communications fall under TCPA protections.
Historically, lenders structured their communications strategies around a uniform set of guidelines, but McLaughlin v. McKesson has revoked this common-sense approach. For lenders with widespread operations, they face the burden of creating multiple communications processes for different jurisdictions or widely abiding by the strictest one. For an industry that has long relied on the FCC to provide a single, uniform set of rules, this shift creates a level of uncertainty lenders haven't faced in decades.
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