Clover TCPA Settlement Details and Implications

Key Lessons for Businesses: The Clover TCPA Settlement Case Explained

Staying compliant with telemarketing regulations is more critical than ever for businesses that engage with customers over the phone or by text. The recent Clover TCPA settlement serves as a powerful reminder of the financial and reputational risks of violating the Telephone Consumer Protection Act (TCPA). In this post, we’ll break down what happened in the Clover case, what it means for your organization, and how you can protect your business from similar pitfalls.

What Was the Clover TCPA Settlement?

Clover Network, a payment processing company, recently agreed to a multi-million-dollar settlement after being accused of making unsolicited marketing calls and texts without proper consent. Plaintiffs alleged that Clover’s agents contacted consumers who had not given explicit permission, a direct violation of the TCPA’s strict consent requirements. While Clover denied wrongdoing, the company chose to settle, highlighting how costly and disruptive TCPA litigation can be—even when intent to violate the law is disputed.

Why Is the TCPA So Important?

The TCPA was created to protect consumers from unwanted and intrusive marketing calls and texts. It requires businesses to:

Obtain prior express written consent before making marketing calls or sending texts to consumers.
Honor Do Not Call (DNC) requests promptly.
Provide clear identification and opt-out instructions in every communication.

Non-compliance can result in statutory damages of up to $1,500 per violation, not including the legal costs and damage to your reputation.

Key Lessons from the Clover TCPA Settlement

1. Consent Is Critical

Never contact consumers for marketing without their clear, documented consent. Verbal agreements or pre-checked boxes on forms are not enough—always get explicit, written permission.

2. Scrub Your Contact Lists Regularly

Maintain up-to-date call and text lists by removing numbers on the National Do Not Call Registry and honoring all opt-out requests. Automated tools can help streamline this process.

3. Train Staff and Third Parties

All employees and vendors involved in outreach must understand TCPA requirements. If using third-party agents or marketing firms, ensure they follow your compliance protocols.

4. Keep Thorough Records

Maintain detailed records of consent, communication history, and opt-outs. This documentation can be vital if your business ever faces a TCPA claim.

5. Review and Update Compliance Policies

Regularly review your telemarketing policies to align with current TCPA rules and best practices. Stay informed of legal updates and recent case law.

Conclusion

The Clover TCPA settlement highlights the steep risks of non-compliance in today’s regulatory environment. By prioritizing clear consent, updating internal processes, and fostering a culture of compliance, your business can avoid costly mistakes and build trust with customers.

Call to Action

Is your business proactive about TCPA compliance? Take time to audit your practices, train your staff, and seek legal advice if you have questions. Have lessons or compliance tips to share? Join the discussion in the comments below!