On Friday, the U.S. Supreme Court agreed to hear the case McLaughlin Chiropractic Associates Inc. v. McKesson Corporation, which addresses whether federal courts must follow the Federal Communications Commission’s (FCC) ruling that the Telephone Consumer Protection Act (TCPA) does not cover unsolicited advertisements received via online fax services. This decision could have significant implications for businesses engaging in fax advertising campaigns, especially as physical fax machines become less common.
Background
McLaughlin Chiropractic Associates filed a proposed class-action lawsuit against McKesson, claiming the company violated the TCPA by sending unsolicited fax advertisements, some of which were received via online fax services. The Ninth Circuit Court of Appeals upheld a lower court’s decertification of the class on the grounds that there was no way to distinguish between messages sent to physical fax machines and those received via electronic inboxes.
FCC’s 2019 Ruling
The FCC had previously ruled that the TCPA only applies to traditional fax machines and not to electronic fax services. This distinction has led to confusion and conflicting interpretations in various federal courts. The FCC’s reasoning was that online faxes do not impose the same costs or burdens on recipients as physical faxes, which typically require paper and ink, as well as tying up fax lines.
Legal Implications
This case presents important questions regarding whether courts must adhere to FCC interpretations under the Hobbs Act. If the Supreme Court rules that courts are bound by the FCC’s interpretation, it could limit the scope of TCPA enforcement against companies using online fax services. However, a ruling to the contrary could expose businesses to greater liability under the TCPA for unsolicited electronic faxes.
What This Means for Businesses
For companies involved in direct marketing via fax or electronic communication services, the outcome of this case will clarify the extent of compliance obligations under the TCPA. Businesses using electronic fax services to distribute promotional materials should closely monitor the Supreme Court’s decision, as it may affect their legal risk and future compliance strategies.
If you have any questions about the petition or would like to discuss your marketing law, TCPA compliance, or related areas of concern, please feel free to contact the attorney assigned to your account at our firm. We’re here to assist with any specific compliance needs you may have.
