In today’s world, online payment apps and other digital platforms have become nearly unavoidable parts of our everyday routine. Whether you’re sending money, paying bills, or shopping online, everything happens quickly and simply. Yet with this convenience comes a growing risk: misuse of the technology. A recent example in the USA involves the widely-used service Cash App (operated by Block, Inc.), which has agreed to settle a dispute for $12.5 million (approximately ₹104 crore) due to sending unauthorised spam text messages. Eligible recipients may receive up to $147 (around ₹12,250) each.
What Happened?
A number of customers claimed that Cash App and Block, Inc. had sent them unsolicited promotional or referral text messages, even though these users never consented. These messages were intended to advertise the service or encourage referrals, but many recipients say they never gave permission. Because of this, a class-action lawsuit was filed in a federal court in the USA.
Under the Telephone Consumer Protection Act (TCPA), companies are prohibited from sending commercial messages without prior consent from the recipient. When a business sends advertising or promotional texts without this consent, it is in violation of the law.
What Did Cash App Do?
Cash App opted to settle the case for $12.5 million rather than go to trial. Importantly, the company did not admit any wrongdoing as part of the settlement. Instead, this move appears to have been a strategic choice: by settling, they avoided protracted court hearings and potential further damage to their brand. Large corporations often choose this route to resolve claims quickly and limit reputational harm.
Who Qualifies for This Settlement?
To be eligible for compensation, individuals must meet all of the following conditions:
- They received text messages from Cash App or its agents without consent between 2018 and 2023.
- They never registered or opted in to receive promotional or referral messages.
- They either have already filed a claim or intend to file in this class-action case.
If you meet these criteria, you may submit a claim and possibly receive a payment.
How Much Will Eligible Users Get?
Each qualifying person may receive up to $147, though the exact amount depends on how many claims are filed and how much of the settlement remains after legal and administrative costs. The more claimants there are, the smaller the individual payout may be.
How Can You File a Claim?
If you live in the USA and believe you received unsolicited text messages from Cash App:
- Complete the online claim form (fully digital process).
- Check the deadline for filing (listed on the court’s website or within the case notice).
- Once approved, payment will be issued via direct deposit or check.
Are Users Outside the USA Eligible?
No. This settlement applies only to residents of the USA. Even if you are in India, Europe, or somewhere else and have used Cash App, you are not eligible to participate in this claim.
What’s the Take-Away? Why It Matters
This case underscores a crucial issue in our digital age: privacy of personal data. Today, our phone numbers and online identities are highly sensitive. Companies must ensure they have explicit consent before sending marketing messages. When they don’t, affected users have the right to seek legal recourse or join a class-action lawsuit.
This situation also reminds us that technology is not infallible: we, as users, need to remain aware of our rights and ensure our data isn’t used without permission.
Impact on Cash App’s Reputation
Cash App is a prominent US fintech company with a large user base. Even without admitting fault, agreeing to this settlement sends a message: in the eyes of the public and regulators, companies must act responsibly and transparently. As consumers demand greater accountability, businesses must ensure clear communication and firm respect for user consent.
Conclusion
The $12.5 million settlement by Cash App is more than just a legal footnote—it’s a reminder that your consent matters in the digital space. While this case doesn’t directly affect India, it still serves as a wake-up call for all of us to safeguard our data. If you’re based in the USA and qualify, you may receive up to $147. More importantly, remember this: in today’s connected world, your permission is your strongest protection.
FAQs
What exactly counts as “unauthorised text messages”?
These are marketing or referral messages sent by Cash App (or its agents) to a mobile phone without the user’s prior consent or registration.
How is a class-action lawsuit different from a personal lawsuit?
In a class-action suit, a large group of people who share the same complaint combine their claims into one case. This simplifies the process and spreads legal costs across all claimants.
If I live in India and used Cash App, can I still file a claim?
No. This settlement is strictly for individuals residing in the United States. Users in India, Europe or elsewhere are not eligible.
