Norwegian, Carnival and Royal Caribbean telemarketing settlement didn’t sink

No Three-Hour Tour

Here’s an update on a case we covered more than two years ago: Philip Chavrat’s Telephone Consumer Protection Act (TCPA) class action against three of the biggest names in the luxury cruise business.

It was a whale of a case, taking seven years all told. The last two years were consumed with settlement negotiation wrangling, but by the time the parties began talks, the case – originally filed in 2012 – had ballooned into a leviathan. The suit spawned three amended complaints, 3,000 pages of briefings, 30 discovery hearings and 15 depositions in four states. As if that weren’t enough, it was even interrupted by a stay of proceeding in 2013 when the Federal Communications Commission (FCC) began debating whether plaintiffs could sue for vicarious liability under the TCPA.

The Takeaway

Chavrat was seeking to hold Travel Services (the telemarketer) and three cruise lines – Norwegian, Carnival and Royal Caribbean – liable for four allegedly unsolicited calls he received between 2011 and 2012. When the FCC ruled in favor of vicarious liability, his case was revived.

Even the settlement took forever, just wrapping up this November with a final approved agreement. Class members will get their share of a settlement fund that will range between $7 million and $12.5 million, depending on the number of claims filed; members are entitled to $300 per unsolicited call for up to three calls per contacted telephone line.

We report on TCPA suits regularly, and significant settlements are common. TCPA violations can be avoided by obtaining necessary consent, properly effectuating opt-outs and timely removing reassigned numbers from marketing lists. Use of arbitration provisions with class action waivers in consent terms can also be an effective way to deter litigation. This illustrates not only the need for a good TCPA compliance program, but also the need to manage vendors that help facilitate text marketing campaigns.