On January 19, 2023 the Third Circuit dismissed a TCPA class action lawsuit (Mauthe v. Millennium Health LLC) against a company that had sent a one-page promotional fax to consumers without their prior consent about a free educational seminar related to drug testing and medication monitoring.

The free seminar would “highlight national trends in opioid misuse and abuse…and discuss the role of medication monitoring as a valuable tool that provides objective, actionable information during the care of injured workers.” 

The fax did not promote specific goods or services. Nor did it include pricing information, testimonials, discount offers, coupons, or any product images. It also did not contain contact information for purchasing a product or service sold by the company. Nevertheless, Millennium Heath was sued under the TCPA’s fax provisions based on a claim that the fax was an unsolicited advertisement. 

Rejecting the claim, the Third Circuit held that “no reasonable recipient…could view [the fax] as promoting the purchase or sale of goods, services or property,” and thus directed dismissal of the suit.

If the contents of the fax had been only slightly different, such as mentioning a product sold by the company, the decision could have easily gone the other way. For marketers and advertisers, the case highlights the fine line companies face when sending consumers messages by telephone, text, or fax without obtaining their prior consent. 

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Craig A. Gilley

Craig Gilley provides a broad range of services for regulated communications entities, as well as information technology, education technology, investment, and private equity companies. Craig’s primary practice involves counseling cable operators, broadband providers, internet service providers, video programmers, satellite providers, and wireless/wireline telecommunications…

Craig Gilley provides a broad range of services for regulated communications entities, as well as information technology, education technology, investment, and private equity companies. Craig’s primary practice involves counseling cable operators, broadband providers, internet service providers, video programmers, satellite providers, and wireless/wireline telecommunications providers on a broad range of legal, regulatory, operational, and transactional issues. He also regularly provides transactional, operational, compliance, and strategic advice to information and educational technology firms. Craig also represents investment and private equity companies, providing transactional and compliance support to ensure that both their acquisitions and ongoing investments fully comply with regulatory requirements.

Photo of Ellen T. Berge Ellen T. Berge

Ellen Berge provides counsel on regulatory compliance, government investigations, contract negotiations, and general business matters. Ellen focuses on advertising, marketing practices, payment processing, and merchant services. Her clients include major brand advertisers and direct-response retailers, and lead generators, telemarketers, media agencies, software providers…

Ellen Berge provides counsel on regulatory compliance, government investigations, contract negotiations, and general business matters. Ellen focuses on advertising, marketing practices, payment processing, and merchant services. Her clients include major brand advertisers and direct-response retailers, and lead generators, telemarketers, media agencies, software providers, and others who serve them. On the merchant services side, she leads a practice that works with banks, processors, sales agents, payment facilitators, independent software vendors, and fintech and financial services businesses. Ellen also serves as the firm’s managing partner of Professional Development and Recruiting.