The TCPA \u201cnonprofit exemption\u201d may not apply to a nonprofit entity acting: (1) on behalf of a for-profit entity and\/or (2) with dual commercial and non-commercial purposes.<\/p>\n
In this putative class action, Plaintiff challenges Defendant\u2019s alleged practice of making unsolicited telemarketing calls to individuals who registered their phone numbers on the national Do Not Call registry (\u201cDNC\u201d).\u00a0 Defendant operates a nonprofit company and \u201cpurports to offer credit counseling services and debt management plans on a nonprofit basis.\u201d\u00a0 Plaintiff asserts that another entity: (1) provides back-office and administration services to Defendant, (2) exerts control over Defendant\u2019s telemarketers, and (3) generates income from Defendant\u2019s telemarketing activities.\u00a0 Pinn v. Consumer Credit Counseling Foundation, Inc.<\/em>, No. 22-cv-04048, 2023 WL 21278 (N.D. Cal. Jan. 3, 2023).<\/p>\n Plaintiff asserted class action claims under the Telephone Consumer Protection Act, 47 U.S.C. \u00a7 227(c)(5) (\u201cTCPA\u201d).\u00a0 Defendant filed a motion to dismiss because the calls were to promote Defendant\u2019s tax-exempt nonprofit \u201cdebt counseling services.\u201d\u00a0 The District Court denied the motion and permitted the case to proceed by analyzing the dual commercial and non-commercial purpose of a nonprofit entity\u2019s communications:<\/p>\n In sum, courts will not automatically dismiss a TCPA action against a nonprofit entity and, instead, the court will analyze the commercial and noncommercial purposes of the communications.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The TCPA \u201cnonprofit exemption\u201d may not apply to a nonprofit entity acting: (1) on behalf of a for-profit entity and\/or (2) with dual commercial and non-commercial purposes. In this putative class action, Plaintiff challenges Defendant\u2019s alleged practice of making unsolicited telemarketing calls to individuals who registered their phone numbers on the national Do Not Call … <\/p>\n\n
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