FCC calls out Lyft for violating telemarketing laws

On-demand car service Lyft has been cited by federal regulators over unwanted autodialed text messages. In a release by the Federal Communications Commission, it’s alleged that the company is violating the Telephone Consumer Protection Act.

“Consumers have the right to choose whether they want marketing calls and text to their cell phones,” Travis LeBlanc, the head of the FCC’s Enforcement Bureau, said. “Today, we again make clear that such calls and texts are unlawful without express written consumer consent.”

Lyft’s own service agreement was the source of the FCC’s investigation, and the agency states that while consumers can opt out of receiving “autodialed or prerecorded telemarketing calls and texts”, it doesn’t allow users to access the service if elected. As part of its investigation, the agency’s citation explained that its staff discovered that Lyft didn’t provide an unsubscribe option for consumers to follow and that to opt out was a complex process.

“The evidence shows that Lyft’s opt-out representations are illusory in nature, and Lyft effectively requires all consumers to agree to receive marketing text messages and calls on their mobile phones in order to use services,” the FCC stated.

The citation was first reported by Bloomberg. The company is not subject to any civil penalties yet, but if its actions continue, the FCC could subject Lyft to “substantial monetary forfeitures.” According to the FCC, future violations could include fines of up to $16,000 for each infraction or each day of continued violation, and up to $112,500 for any single act or failure to act.

A Lyft spokesperson responded to our inquiry with this statement: “This is the first we are seeing of the order and are in the process of reviewing it. We look forward to working with the FCC to resolve this issue.”