By Mike Reeves | ComplianceJournal.news
Kaiser Foundation Health Plan agreed to a $10.5 million class action settlement to resolve TCPA claims arising from a straightforward compliance failure: continuing to send marketing texts to consumers who had already replied STOP. The settlement class covers individuals who received more than one marketing text from Kaiser after opting out between January 2021 and August 2025 — a four-year window that suggests systemic rather than isolated opt-out processing failures.
The case is textbook TCPA class certification mechanics. Kaiser used standardized text messaging infrastructure to send marketing messages to a defined list. Every class member received substantially identical treatment — texts sent after an opt-out request, processed through the same system, generating the same alleged violation. That uniformity is what makes TCPA opt-out failures so dangerous: the efficiency that makes bulk text marketing economical is exactly what makes it class-certification-ready when something goes wrong in the opt-out processing chain.
For compliance professionals, the lesson is not novel — honor opt-out requests promptly and completely — but the $10.5 million price tag on getting it wrong is a useful benchmark. Organizations running text marketing campaigns at scale should audit their opt-out processing infrastructure now: how opt-out requests are received, how they are logged, how they propagate to sending systems, and what happens when a consumer who has opted out is added to a new campaign list from a different source.
Source: ClassAction.org — Read the full story →