Papa John’s Faces $250M Lawsuit for Texting Too Much

by Christopher Freeburn | November 14, 2012 10:28 am

Papa John’s Faces $250M Lawsuit for Texting Too Much

Pizza 300x227 Papa John's Faces $250M Lawsuit for Texting Too Much[1]Customers fed up with a barrage of promotional text messages[2] from pizza chain Papa John’s (NASDAQ:PZZA[3])have filed a $250 million class action against the company.

In their lawsuit, the plaintiffs accuse the pizza purveyor of sending 500,000 unsolicited text messages offering discounts and other promotions at all hours of the day and night, CNNMoney noted.

Papa John’s used a service called OnTime4U — also named as a defendant in the lawsuit — until the pizza company was originally sued over the practice in April 2010. At the time, Papa John’s conceded that sending unrequested text messages probably broke the law

Some plaintiffs in the current lawsuit allege that they received up to 16 texts in a row. Plaintiffs said the messages began after they placed orders at Papa John’s using their mobile phones. They noted that they had not given the company permission to send text messages.

The plaintiffs are demanding $500 in damages per text messages. However, the law permits damage awards of up to $1,500 per text messages. Papa John’s denies that it sent the text messages, blaming outside vendors and franchisees.

Shares of Papa John’s fell more than 1% in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/05/Pizza.jpg
  2. a barrage of promotional text messages: http://money.cnn.com/2012/11/13/technology/mobile/papa-johns/
  3. PZZA: http://studio-5.financialcontent.com/investplace/quote?Symbol=PZZA

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