Papa John’s lawsuit of $250 million for soliciting customers via text message is another hard hit to the pizza company, who has already been under heavy scrutiny for its CEO’s comments about Obamacare.
According to ABC News, Papa John’s lawsuit of $250 million for soliciting customers via text is a major issue to chain restaurants. A group of Papa John’s customer filed a class action lawsuit against the pizza giant for sending out unsolicited text messages. U.S. District Court Judge in Seattle John Coughenour certified the suit last Friday, and the plaintiffs claim the damages could amount to well over $250 million.
The attorney representing the customers of Papa John’s, Donald Heyrich, believes that the chain restaurant sent over 500,000 texts to its customers the last few years. The Papa John’s lawsuit was filed in 2010, where the customers say that the Telephone Consumer Protection Act of 1991 should have prevented the pizza restaurant from sending them spam via text and could lead to Papa John’s paying $500 per unsolicited telephone advertisement or texting message. “Businesses across the country spend massive sums of money on spam filtering software on our email. We’re trying to keep spam out of our cell phones in the way that it has infected our email, ” said Heyrich.
Along with Papa John’s lawsuit, five other Papa John’s franchisee owners in different states have been brought into the class action including Rain City Pizza, Rose City Pizza, Seattle PJ Pizza, PJ Sound Pizza, Papa Washington.
Papa John’s senior vice president of legal affairs Caroline Oyler said that Papa John’s will aggressively fight to appeal the certification of the lawsuit as she states the text messaging program used was not Papa John’s, but a third party company that a small number of Papa John’s franchisees used years ago called OnTime4U.
Oyler told reporters, “We will continue to aggressively defend the case. We communicated some concerns that we had. It’s important to note these are independent businesses. We can advise but we can’t dictate how they run their businesses.”
However, Heyrich said that the fact that the court certified the class lawsuit speaks volumes. “The court certified a class of all individuals in the United States who were sent one of these unsolicited text messages. We understand from the complaints that were logged internally at Papa John’s that some people were receiving multiple copies of the same message on the same day.”
Papa John’s Lawsuit of $250 Million for Soliciting Customers via Text Message.