September 28, 2022

Volume XII, Number 271

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September 28, 2022

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September 27, 2022

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September 26, 2022

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DNC DOCTRINE: Termination of Contract Does Not Terminate TCPA’s EBR Says Court

Pretty quick ruling for you folks.

Plaintiff had an insurance contract with the Defendant. Plaintiff cancelled the policy. Defendant added Plaintiff’s number to a winback campaign and tried to bring him back into the fold.

Plaintiff sued arguing that the termination of the policy also constituted a termination of the EBR. That is, Plaintiff argued that the formal termination of the policy necessarily cut off the EBR and neutralized the presumed 18 month run off period afforded by the CFR.

The Court disagreed. Concluding that the DNC’s EBR rules are clear, the Court found that the termination of the policy did not destroy the EBR defense. Instead the Plaintiff would have had to clearly ask for calls to stop in order for the EBR to evaporate.

The case is Rowan v. US Dealer Services, 2022 WL 2803103, Civ. No. 21-09945 (KM)(LDW)(D. N.J. 07/18/2022).

Rowan is a great little case that continues the trend of cases holding that “implied” revocation is not effective in the TCPAWorld. Most of the time “implied” revocation looks at consent, however. Rowan applies the same doctrine to the DNC’s EBR defense, which is pretty nice to see.

Bottom line, the termination of a business relationship is not the termination of the EBR defense. You have 18 months from the date of the last transaction to try to win back your customers under the federal DNC rules–just remember to do it manually (and watch out for states like Florida that lack an EBR defense)!

© 2022 Troutman FirmNational Law Review, Volume XII, Number 201
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About this Author

Eric Troutman TCPA Lawyer Troutman Law Firm Orange County, CA
Founder

Eric J Troutman is known as one of the country’s prominent class action defense lawyers and is nationally recognized in Telephone Consumer Protection Act (TCPA) litigation and compliance. He has served as lead defense counsel in more than 70 national TCPA class actions and has litigated nearly a thousand individual TCPA cases in his role as national strategic litigation counsel for major banks and finance companies. Eric also helps industry participants build TCPA-compliant processes, policies, and systems.

Eric's perspective allows him to...

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