FCC Holds Lyft Violates Federal Text-Spam Law

(CN) - Lyft violates federal law by requiring consumers to receive marketing text messages as a condition of using the service, the FCC ruled.

In a citation issued September 11, the agency directed the ride-sharing service to stop the practice or run the risk of being fined.

The law in question, the Telephone Consumer Protection Act, prohibits companies from using automated dialers to send text messages to users without their consent.

The FCC's rules implementing that law also prohibit companies from compelling consumers to accept autodialed calls or texts as a condition of service.

According to the citation, FCC staff discovered that when they followed Lyft's opt-out instructions, they were no longer able to use the company's services.

"Accordingly, 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 agency said.

The FCC said it will continue to monitor Lyft's activities regard to its opt-out policies and procedures.

It noted that if Lyft fails to act on the agency's warning, it could face fines of up to $16,000 for each violation, and up to $112,500 for any single act or failure to act.

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