9th Circuit rings the ‘Bell’ on level of control required for vicarious liability under TCPA

company can continue to apply a “hands off” approach to dealings with third-party vendors after the 9th Circuit's recent Thomas ruling

Plaintiffs’ attorneys have increasingly filed lawsuits against corporate sellers and retailers for calls placed by third-party marketers, even where the corporate client reasonably relied on the third-party marketers’ expertise and representations regarding compliance with federal and state telemarketing laws. Enterprising plaintiffs’ attorneys have targeted the “deeper pockets” after the FCC ruled in 2013 (In re Joint Petition filed by Dish Network LLC ) that sellers may be vicariously liable under traditional agency principles for violations of Section 227(b), Chapter 47 of the United States Code. Arguing that the FCC applied a loose standard for liability, these plaintiffs’ attorneys argue the Restatement (Third) of Agency § 1.01 applies because it arguably requires only that the principal have the right to control the agent’s work.

Seller must control “the manner and means” of the telemarketing campaign

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Ana Tagvoryan

Ana Tagvoryan handles a wide variety of privacy, social media, and unfair competition matters in federal and state courts of California. She is a member...

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Joshua Briones

Joshua Briones advises clients regarding compliance with state and federal laws, which govern the use and disclosure of consumer information. Mr. Briones is a member...

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