{"id":10901,"date":"2025-06-16T14:00:00","date_gmt":"2025-06-16T19:00:00","guid":{"rendered":"https:\/\/activeprospect.com\/blog\/\/"},"modified":"2025-06-16T11:53:14","modified_gmt":"2025-06-16T16:53:14","slug":"clover-tcpa-settlement","status":"publish","type":"post","link":"https:\/\/activeprospect.com\/blog\/clover-tcpa-settlement\/","title":{"rendered":"What businesses should learn from the Clover TCPA settlement case"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"448\" src=\"https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/Clover_settlement_blog-1024x448.png\" alt=\"\" class=\"wp-image-10902\" srcset=\"https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/Clover_settlement_blog-1024x448.png 1024w, https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/Clover_settlement_blog-300x131.png 300w, https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/Clover_settlement_blog-768x336.png 768w, https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/Clover_settlement_blog-1536x672.png 1536w, https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/Clover_settlement_blog-2048x896.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The Clover TCPA settlement serves as a wake-up call to businesses to make sure they are proactively addressing <a href=\"https:\/\/activeprospect.com\/glossary\/tcpa\/\">TCPA<\/a> compliance in their text message and calling campaigns. Yes, the 1:1 consent requirement may be gone thanks to recent legal shifts, but that doesn\u2019t mean the rules no longer apply. <strong>TCPA compliance is still mandatory<\/strong>, and the risks are just as real as the legal landscape continues to evolve.&nbsp;<\/p>\n\n\n\n<p>Whether you&#8217;re just starting to invest in compliance efforts or still on the fence, this case illustrates just how costly <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-violations\/\">missteps<\/a> can be.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the Clover TCPA settlement?<\/strong><\/h2>\n\n\n\n<p>The <strong>Clover TCPA settlement<\/strong> stems from a class-action lawsuit, <a href=\"https:\/\/clovertcpasettlement.com\/Content\/Documents\/Preliminary%20Approval%20Order.pdf\"><em>Bobo v Clover Network, LLC<\/em><\/a>. The plaintiff alleged that Clover\u2014a point-of-sale platform provider\u2014sent him repeated telemarketing text messages:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Without his <a href=\"https:\/\/activeprospect.com\/blog\/express-written-consent\/\">express written consent<\/a><\/li>\n\n\n\n<li>Despite his number being listed on the National Do-Not-Call (DNC) Registry<\/li>\n\n\n\n<li>Without an existing business relationship<\/li>\n<\/ul>\n\n\n\n<p>Clover agreed to settle the case for up to <strong>$15 million<\/strong>, offering $60 per claimant to over <strong>1 million eligible individuals<\/strong>. These were people who:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Received two or more texts from Clover or its clients in a 12-month span (between July 1, 2018, and November 30, 2023)<\/li>\n\n\n\n<li>Had their number on the national DNC list for at least 30 days<\/li>\n\n\n\n<li>Had no prior business relationship with Clover<\/li>\n<\/ul>\n\n\n\n<p>The settlement window closed on April 29, 2024. Still, the case continues to ripple through industries reliant on texting and outbound marketing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why it matters: TCPA liability is not theoretical<\/strong><\/h2>\n\n\n\n<p>TCPA litigation is <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-lawsuits-updates\/\">booming<\/a>. Cases like <em>Bobo v Clover<\/em> make it clear that TCPA plaintiff attorneys are actively bringing TCPA cases against companies with sizable automated texting campaigns or using automated dialing technologies for calls.&nbsp;<\/p>\n\n\n\n<p>You can\u2019t rely on assumptions like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cWe\u2019re texting only warm leads.\u201d<\/li>\n\n\n\n<li>\u201cOur vendor handles compliance.\u201d<\/li>\n\n\n\n<li>\u201cWe didn\u2019t know they were on the DNC list.\u201d<\/li>\n<\/ul>\n\n\n\n<p>Ignorance or outsourcing <strong>won\u2019t save you from liability<\/strong>. A combination of non-compliant phone number data check practices and automated text campaigns, without solid <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-consent\/\">proof of consent<\/a>, could be an expensive mistake to recover from in a TCPA case.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key takeaways for businesses<\/strong><\/h2>\n\n\n\n<p>Here\u2019s what every business should learn from the <a href=\"https:\/\/www.compliancepoint.com\/marketing-compliance\/text-messaging-lessons-from-the-clover-tcpa-settlement\/\">Clover<\/a> case.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Text messaging IS telemarketing<\/strong><\/h3>\n\n\n\n<p>Many companies still don\u2019t treat <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-text-messages\/\">SMS marketing<\/a> with the same legal caution as phone calls. That\u2019s a big mistake. Under the TCPA, <strong>text messages count as telemarketing<\/strong> (depending on the content of the message, see <a href=\"https:\/\/activeprospect.com\/blog\/sms-consent\/\">marketing messages versus informational messages<\/a>) and are subject to the same <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-rules\/\">rules<\/a> and restrictions.<\/p>\n\n\n\n<p><strong><em>Lesson:<\/em><\/strong><em> Apply the same level of compliance scrutiny to SMS campaigns as you do to voice calls.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Consent must be explicit and documented<\/strong><\/h3>\n\n\n\n<p>The law requires <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-marketing\/\">prior express written consent<\/a> before sending automated marketing texts. That means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clear language<\/li>\n\n\n\n<li>Opt-in checkboxes and button language are designed to indicate an agreement action to receive the messages&nbsp;<\/li>\n\n\n\n<li>No hidden disclaimers<\/li>\n<\/ul>\n\n\n\n<p>And most importantly, you need to <strong>keep a record<\/strong> of the documented consent.<\/p>\n\n\n\n<p><strong><em>&nbsp;Lesson:<\/em><\/strong><em> If you can\u2019t prove you had consent, you didn\u2019t have it.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. The National DNC List is not optional<\/strong><\/h3>\n\n\n\n<p>Texting numbers listed on the National DNC Registry without proper consent is a direct violation, even if those numbers were acquired through a <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-third-party-consent\/\">lead vendor<\/a>.<\/p>\n\n\n\n<p><strong><em>Lesson:<\/em><\/strong><em> You\u2019re responsible for compliance, even if a third party provided the leads.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Your risk grows with every message<\/strong><\/h3>\n\n\n\n<p>The TCPA allows up to $1,500 per <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-damages\/\">violation<\/a> if deemed willful. Sending multiple texts to a single non-consenting individual can rack up serious penalties quickly.<\/p>\n\n\n\n<p><strong><em>Lesson:<\/em><\/strong><em> One mistake, multiplied at scale, can cost millions.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. Consent management can\u2019t be an afterthought<\/strong><\/h3>\n\n\n\n<p>Poor documentation and a lack of real-time auditability make you vulnerable. Having a vague trail of screenshots, spreadsheet exports, or CRM notes isn\u2019t enough. You need <strong>robust, timestamped records of consent<\/strong>.<\/p>\n\n\n\n<p><strong><em>Lesson: <\/em><\/strong><em>An investment in compliance software is an investment in sustainability.&nbsp;<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How TrustedForm helps you mitigate TCPA risk<\/strong><\/h2>\n\n\n\n<p>ActiveProspect\u2019s<a href=\"https:\/\/activeprospect.com\/trustedform\/\"> TrustedForm<\/a> is designed to protect your business, provide more visibility around consent to contact transactions, record-keeping requirements, and mitigate many common TCPA risks. With TrustedForm, your business can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mitigate TCPA risk <\/strong>by helping to avoid contacting consumers without documented consent.<\/li>\n\n\n\n<li><strong>Verify lead authenticity <\/strong>to ensure the certificate matches the lead you are buying.<\/li>\n\n\n\n<li><strong>Gain confidence <\/strong>knowing that your lead has given consent to be contacted.<\/li>\n<\/ul>\n\n\n\n<p>By integrating <a href=\"https:\/\/activeprospect.com\/trustedform\/\">TrustedForm<\/a> into your lead generation and outbound marketing efforts, including SMS campaigns, you can simplify compliance, reduce risk, and focus on leads that actually want to be contacted.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Final thoughts<\/strong><\/h2>\n\n\n\n<p>Despite the loss of the <a href=\"https:\/\/activeprospect.com\/blog\/fcc-one-to-one-consent\/\">1:1 consent requirement<\/a>, the <strong>TCPA is still active, still enforced,<\/strong> and still carries serious financial consequences for violations. The Bobo v Clover TCPA settlement is a <strong>warning to the industry <\/strong>of the dangers of noncompliance. Clover\u2019s outreach tactics, likely fueled by automation and scale, fell apart because of common oversights that ultimately cost them <strong>$15 million<\/strong> and potentially far more in reputation and customer trust.<\/p>\n\n\n\n<p><strong>So, what\u2019s the move?<\/strong> Make compliance a core part of your business. Build it into your tech stack, your lead flow, and every form of outreach. And with the help of compliance tools like TrustedForm, you\u2019re helping protect your brand, reducing risk, and earning trust every step of the way.<\/p>\n\n\n\n<p>Get started with <a href=\"https:\/\/activeprospect.com\/trustedform\/\">TrustedForm<\/a> today.<\/p>\n\n\n\n<div class=\"hs-cta-embed hs-cta-simple-placeholder hs-cta-embed-188384143983\"\n  style=\"max-width:100%; max-height:100%; width:700px;height:292.1953125px\" data-hubspot-wrapper-cta-id=\"188384143983\">\n  <a href=\"https:\/\/cta-service-cms2.hubspot.com\/web-interactives\/public\/v1\/track\/redirect?encryptedPayload=AVxigLI1xdqJm5sUBjWbiZ83NTahnqD5TbxAS9PQXu1hMrYSOVM6xhfd9pWkdsDre2ySPhBFxbf%2BeRs%2BzYg2R0qD8EqMyOboIHGtt50OspRKZJLBmAZqP1rUFR92DFNYpFJoqMUEyvCTgnHhj4eqirQQob9IQUBl6WOUIG97iEmFFCy3qni%2BJ5S75%2B3CGvRkH%2BXrd6WBeA%3D%3D&#038;webInteractiveContentId=188384143983&#038;portalId=47215574\" target=\"_blank\" rel=\"noopener\" crossorigin=\"anonymous\">\n    <img decoding=\"async\" alt=\"CTA_TFDemo\" loading=\"lazy\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/47215574\/interactive-188384143983.png\" style=\"height: 100%; width: 100%; object-fit: fill\"\n      onerror=\"this.style.display='none'\" \/>\n  <\/a>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>DISCLAIMER: <em>This page and all related links are provided for general informational and educational purposes only and are not legal advice. ActiveProspect does not warrant or guarantee this information will provide you with legal protection or compliance. Please consult with your legal counsel for legal and compliance advice. You are responsible for using any ActiveProspect Services in a legally compliant manner pursuant to ActiveProspect\u2019s Terms of Service. Any quotes contained herein belong to the person(s) quoted and do not necessarily represent the views and\/or opinions of ActiveProspect.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Clover TCPA settlement serves as a wake-up call to businesses to make sure they are proactively addressing TCPA compliance in their text message and calling campaigns. Yes, the 1:1 consent requirement may be gone&hellip;<\/p>\n","protected":false},"author":59,"featured_media":10903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[251],"tags":[31,28,202,29],"ap-post-type":[],"ap-post-industry":[],"ap-post-product":[],"ap-post-topic":[],"class_list":["post-10901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tcpa","tag-compliance","tag-tcpa","tag-tcpa-compliance","tag-trustedform"],"acf":[],"_links":{"self":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts\/10901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/comments?post=10901"}],"version-history":[{"count":0,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts\/10901\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/media\/10903"}],"wp:attachment":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/media?parent=10901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/categories?post=10901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/tags?post=10901"},{"taxonomy":"ap-post-type","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-type?post=10901"},{"taxonomy":"ap-post-industry","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-industry?post=10901"},{"taxonomy":"ap-post-product","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-product?post=10901"},{"taxonomy":"ap-post-topic","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-topic?post=10901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}