$147 Payment for Everyone – Now that everything is essentially done via digital means, the life of the planet has changed significantly. Facilities as online payments, money transfers, and mobile banking have facilitated our lives immensely. However, as a result, tech-related disputes and takes to the court have become more of the digital world than the physical one. One of the largest incidents was a situation where Cash App, a widely used digital payment platform, was forced to settle a lawsuit for $12.5 million (about ₹104 crores) for the spams it sent in text messages. Now, under this deal, qualified people can get a maximum of $147 (roughly ₹12,250) as a payment. Even though this case has been limited to the US, its lessons are vital to the digital world users all around the globe.
What was the Cash App controversy?
Cash App was accused of sending promotional messages and referral links to thousands of users without their permission. Those users didn’t have an account on Cash App and didn’t agree to receive any marketing messages from the company.
According to the US telephone Consumer Protection Act (TCPA), it would be illegal if any company sends any type of advertisement or promotional text messages without the consent of the receiver.
This onslaught of spam messages angered the users of these accounts, and the situation went to court. Therefore, a class action lawsuit was brought by a group of individuals against Cash App, which they alleged had violated their digital privacy by accessing their information without authorization.
Why did Cash App settle?
The company did not admit to any wrongdoing, but to avoid a lengthy legal case and court proceedings, Cash App decided to settle for $12.5 million.
Such a move is typically taken by companies that:
- Do not want to waste time and money on a protracted legal battle
- Want to avoid further damage to their brand image
- Want to avoid court orders and fines
This settlement does not mean the company is guilty, but rather that it wants to end the dispute and move on.
Who is eligible for this settlement?
According to the terms of the settlement, the following people are eligible:
- ✔ People who received unsolicited text messages sent by Cash App or its agents between 2018 and 2023
- This includes people who had no connection to Cash App but were still sent messages.
- ✔ People who never consented to referral links or promotional messages
- i.e., they did not opt-in.
- ✔ Those who have filed or will file a claim (Claim Form) under the class action
- If someone falls into these categories, they are eligible to receive a payment.
How much can eligible individuals receive?
The total settlement amount is $12.5 million.
Of this:
- Legal fees
- Administrative expenses
- Notification and processing charges
The remaining funds after withdrawals will be distributed among eligible users.
If the number of claimants is not too large, the payment could be up to $147 per person.
However, if the number of claims increases, the amount may decrease, as the full amount will be distributed among all eligible users.
How can American users receive money?
People living in the United States who believe they have received unwanted Cash App text messages can take advantage of this settlement.
✦ Process to Receive Payment:
- An online Claim Form must be completed.
(This is available on the court’s website or case notice). - An application must be submitted before the deadline.
- Payment will be received upon acceptance of the application.
- Payment will be sent via Direct Deposit or Check.
The entire process is 100% online and extremely simple.
Are users from India or other countries eligible?
No.
This settlement is only for users residing in the US.
Users from India, Pakistan, the UK, or other countries cannot benefit from this claim process, even if they have downloaded Cash App.
What are the lessons learned from this case?
This Cash App case highlights the importance of privacy and consent in the digital world. Some important learnings are as follows:
- ✔ 1. Your digital privacy is your biggest security.
- No app, website, or company can send you promotional messages without your permission.
- ✔ 2. Users have legal rights.
- If a company sends you advertising messages without your permission, you can:
- File a complaint.
- Take legal action.
- Be part of a class action lawsuit.
- If a company sends you advertising messages without your permission, you can:
- ✔ 3. Digital awareness is also important along with technology.
- You should know what permissions you are granting to which apps and how to protect your data.
What is a class action lawsuit?
A class action lawsuit is a legal case in which one person or a few people file a lawsuit on behalf of hundreds or thousands of people.
This is done when:
- Everyone has the same problem
- Everyone cannot file their own case separately
- A company has caused massive damage
In this case, thousands of users received spam messages from Cash App, so they filed a joint class action lawsuit.
In these types of lawsuits:
- Justice is delivered quickly
- Compensation is awarded
- Companies are pressured to respect users
What impact has Cash App’s image had?
Cash App is a very popular fintech app in the US, but this case has certainly affected its brand image.
Although the company did not admit wrongdoing, the large settlement indicates that the matter was serious.
To avoid such problems in the future:
- Companies must be more transparent
- User consent must be respected
- Data security must be prioritized
Incidents like this demonstrate that no matter how large a company is, it cannot compromise user privacy.
Conclusion: User consent is paramount
This $12.5 million settlement with Cash App is more than just a legal case; it’s a message to users worldwide.
It announces that:
- We cannot take our digital consent for granted as it still has a price
- Companies that decide to turn a blind eye to this may have to pay a heavy price
- Data security and privacy should be prioritized above all other needs.
If you are living in the US and you
FAQs:
Q. What is the Cash App settlement about?
A. It is a $12.5 million settlement over unwanted spam text messages sent without user consent.
Q. How much can eligible users receive?
A. Eligible users may get up to $147, depending on the number of total claims.
Q. Who is eligible for the payout?
A. Anyone in the U.S. who received Cash App promotional texts without permission between 2018–2023.
