January 20, 2020

January 17, 2020

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Utility Provider Settles Call Recording Lawsuit for $3.7 Million

Tiger Natural Gas, Inc. recently settled a class action privacy suit alleging that it illegally recorded sales calls with over 27,000 potential customers. Although Tiger hired a third party to handle its telemarketing, Tiger will pay $3.7 million on the claims as the advertiser with ultimate liability for non-compliance. According to the plaintiffs, neither company told the consumers the calls were recorded, as is required under California’s call recording law.

The Northern District of California court approved the settlement, which was far less than Tiger’s potential liability if found to be in violation of the California law.
The class’s other claims for relief are still pending class certification, so Tiger is not out of the jungle yet.

Putting it Into Practice: Advertisers, not their third-party vendors, are ultimately responsible for their brands’ compliance with advertising and consumer privacy laws. Companies engaged in nationwide marketing must therefore keep a keen eye to ensure vendor compliance with state-specific regulations

Copyright © 2020, Sheppard Mullin Richter & Hampton LLP.


About this Author

Robert E. Hough II Intellectual Property Lawyer Sheppard Mullin Law Firm

Robert Hough is an associate in the Intellectual Property Practice Group in the firm’s Dallas office.

Areas of Practice

Robert represents clients in litigation to secure, enforce, and leverage their valuable intellectual property rights. He counsels clients in matters related to copyright, trademark, trade dress, trade secret, advertising, publicity, and entertainment law. He regularly leads clients through trademark enforcement proceedings under the Uniform Domain Name Dispute Resolution Policy (UDRP) before the World Intellectual Property Organization (WIPO...

 Sarah S. Williamson Sheppard Mullin Associate Dallas Intellectual Property Copyrights False Advertising, Lanham Act and Unfair Competition IP Licensing, Technology and Commercial Transactions Patent Litigation Trademark Applications and Prosecution Trademarks and Trade Dress

Sarah Williamson is an associate in the Intellectual Property Practice Group in the firm's Dallas office.

Areas of Practice

Sarah has experience in various aspects of litigation involving patent, trademark, copyright, and contract disputes. This experience includes all states of patent litigation, including pre-trial motions practice and Markman hearings. She also has experience in various other areas, including patent and trademark prosecution, domain name disputes, copyright registration, intellectual property licensing, IP-related due diligence considerations, and contests, sweepstakes, and online promotions.

Prior to joining the firm, Sarah worked in research and development for a chemical company specializing in biologicals, water treatment, and industrial chemicals, and for a highly specialized middle market private equity firm focused on the energy industry.