ARTICLE
5 August 2020

TCPA's 2015 Government-Debt Collection Exception Struck Down- Now What?

SM
Sheppard, Mullin, Richter & Hampton LLP

Contributor

Businesses turn to Sheppard to deliver sophisticated counsel to help clients move ahead. With more than 1,200 lawyers located in 16 offices worldwide, our client-centered approach is grounded in nearly a century of building enduring relationships on trust and collaboration. Our broad and diversified practices serve global clients—from startups to Fortune 500 companies—at every stage of the business cycle, including high-stakes litigation, complex transactions, sophisticated financings and regulatory issues. With leading edge technologies and innovation behind our team, we pride ourselves on being a strategic partner to our clients.
The plaintiffs in this case had argued that the TCPA violated the First Amendment because it was a content-based restriction on speech that did not serve a compelling governmental interest.
United States Privacy
Sheppard, Mullin, Richter & Hampton LLP are most popular:
  • within Insolvency/Bankruptcy/Re-Structuring and Cannabis & Hemp topic(s)

The Supreme Court's recent decision in Barr v. American Association of Political Consultants held the government-debt exception of the TCPA unconstitutional under the First Amendment's Free Speech Clause. This means that going forward, companies that make "debt-collection" calls on behalf of the federal government can only do so with the prior express written consent of the called individuals.

The plaintiffs in this case had argued that the TCPA violated the First Amendment because it was a content-based restriction on speech that did not serve a compelling governmental interest. Their concern related to the TCPA prohibition (in many situations) of unsolicited, automated calls to cell phones. In particular, the 2015 amendment to add a new exception only for unsolicited automated calls related to the collection of debts on behalf of the federal government. The American Association of Political Consultants and other political nonprofit organizations challenged this "government debt" exception on First Amendment grounds, arguing that the 2015 amendment favored speech made for collecting government debt over political and other speech.

By a 6 to 3 vote, the Supreme Court agreed and struck down the government-debt exception and affirmed the ruling of the Fourth Circuit. The Supreme Court concluded that the government could not exempt calls attempting to collect government debts while unsolicited calls to collect private debts remained illegal. Instead of striking down the entire statute, however, the court held the exception was severable from the rest of the TCPA. Therefore, only the government debt collection exception was thrown out. The rest of the TCPA still stands.

Putting it Into Practice: The most significant outcome of this decision to leave the bulk of the TCPA intact. Although the government debt-collection exception was scrapped, the TCPA's prohibition on unsolicited automated calls to cell phones still applies to all calls except those made for an "emergency purpose." Government-debt calls are now treated the same as all other automated calls to cell phones-as they were before the 2015 amendment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

[View Source]

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More