Pizza Hut Franchisees to Pay $6M in TCPA Class Action

by | Nov 8, 2019 | Compliance Blog Posts | 0 comments

Multiple Pizza Hut franchisees have agreed to pay a total of $6 million in a TCPA class action for allegedly texting unsolicited advertisements to cellphone subscribers in violation of the Telephone Consumer Protection Act (TCPA). The franchisees – ADF MidAtlantic, LLC, ADF Pizza I LLC, ADF PA LLC and American Huts Inc. – will fund the settlement amount to pay anyone who received an unsolicited text from Pizza Hut between November 2010 and January 2013 after their friends passed on their numbers during a promotion.

TCPA Class Action

According to court documents, the class in the TCPA class action suit includes over 13,000 cell phone numbers. Attorneys for these subscribers are expected to seek around $2 million of the settlement, with lead plaintiff Brian Keim expected to request a $10,000 incentive award.

Keim claims that despite never giving the franchise operators or Pizza Hut his phone number, he received messages about deals and offers via an automated service.

Further, “given the average claims rate, plaintiff anticipates that each settlement class member will receive the full $400.00, which will provide settlement class members an outstanding result,” said cellphone users, urging the court to approve the settlement.

Earlier in the year, Pizza Hut LLC – who was originally named in the lawsuit – attempted to get out of the case, stating that they can’t be held liable under the TCPA as the text message campaign was run by the franchisees. Three of the franchisees are run by ADF group companies, which will pay 60% of the total $6 million settlement.

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