Ninth Circuit Holds TCPA Prohibits Pre-Recorded Recruiting Calls To Cell Phones Without Prior Express Consent [telecom]

by Rod M. Fliegel (San Francisco) , William Simmons (Philadelphia), Zoe Argento (Denver), Julie Stockton (San Francisco) and Garrick Y. Chan (San Francisco)

Staffing companies and employers using all tools at their disposal to recruit workers may face increased risk following the Ninth Circuit's recent opinion in Loyhayem v. Fraser Financial. In Loyhayem, the court found that calling potential workers' cell phones with pre-recorded voice messages could violate the Telephone Consumer Protection Act (TCPA), unless the workers had previously consented to the calls. In light of Loyhayem, "cold-calling" prospects using this method may subject companies to class actions carrying risk of substantial statutory damages.

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