Allstate Faces Class Action Lawsuit for Do-Not-Call List Violations

A class action lawsuit has been filed against Allstate Insurance Company, alleging violations of the Telephone Consumer Protection Act (TCPA). The plaintiffs, Joseph Bond, Barbara Durant, William Kroll, and Tonia Jewell-Vines, claim that Allstate engaged in unsolicited telemarketing to promote the sale of its insurance products, including prerecorded calls and calls to numbers on the National Do-Not-Call list.

What is the Telephone Consumer Protection Act?

The TCPA is a federal law that restricts telemarketing calls and the use of automated telephone equipment. The law limits the use of automatic dialing systems, artificial or prerecorded voice messages, SMS text messages, and fax machines. It also specifies several technical requirements for fax machines, autodialers, and voice messaging systems—principally with provisions requiring identification and contact information of the entity using the device to be contained in the message.

Violations of the TCPA can result in significant penalties. Each unsolicited call or message can carry a fine of $500, and if the violation is found to be willful, the fine can be tripled to $1,500 per call or message.

How Did Allstate Allegedly Violate the TCPA?

According to the lawsuit, Allstate authorized insurance agents to place telemarketing calls on its behalf, including prerecorded calls and calls to numbers on the National Do-Not-Call list. Allstate is alleged to have set standards for its insurance agents and had the right to monitor and terminate their relationships for noncompliance.

The plaintiffs further claim that Allstate approved and authorized telemarketing vendors to act as sub-agents and place calls on its behalf. Allstate is said to have investigated and approved the telemarketing practices of these vendors, and was aware that the vendors placed prerecorded telemarketing calls and calls to numbers on the Do-Not-Call list.

What Happened to the Plaintiffs?

The plaintiffs allege that they received unsolicited telemarketing calls promoting Allstate's insurance products. Bond received a prerecorded call to his residential cellular number, which was on the Do-Not-Call list, without his consent. Durant also received a prerecorded call to her residential cellular number, which was on the Do-Not-Call list, without her consent.

Kroll and Jewell-Vines both received multiple unsolicited telemarketing calls promoting Allstate's insurance products to their residential cellular numbers, which were on the Do-Not-Call list, without their consent. The plaintiffs claim that Allstate failed to maintain adequate policies, procedures, and training to prevent unlawful calls to numbers on the Do-Not-Call list.

Who Are the Class Members?

The plaintiffs are seeking certification of two proposed classes: the Prerecorded Call Class and the Do-Not-Call Class. The Prerecorded Call Class includes all persons within the United States who received a prerecorded call promoting Allstate's insurance products to their residential cellular number without their consent. The Do-Not-Call Class includes all persons within the United States who received more than one unsolicited call promoting Allstate's insurance products to their residential cellular number, which was on the Do-Not-Call list, without their consent.

How Much Are the Plaintiffs Seeking?

The plaintiffs are seeking injunctive relief, statutory damages, appointment as class representatives, appointment of their attorneys as class counsel, and any other necessary relief. The exact dollar amount is not specified, but given the potential penalties under the TCPA, it could be significant.

It's worth noting that each unsolicited call or message can carry a fine of $500, and if the violation is found to be willful, the fine can be tripled to $1,500 per call or message. With potentially thousands of class members, the total damages could be substantial.

The plaintiffs have also requested a jury trial for all claims.

Given the allegations and potential damages, this case will be one to watch as it progresses through the courts.