What the Berman TCPA settlement teaches us about compliance risks

If your business is only slightly invested—or not invested at all—in TCPA compliance, the Berman TCPA settlement should serve as a serious wake-up call. With the rising popularity of SMS marketing, telemarketing, and lead generation, companies that overlook TCPA compliance are leaving themselves exposed to significant legal and financial risks.

This post will break down what is the Berman TCPA settlement, explore the background of the case, and most importantly, highlight what your business can learn from it. We’ll also explain how consent documentation tools like TrustedForm can help reduce your exposure and demonstrate your commitment to compliant communication practices.

Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Please consult legal counsel for guidance specific to your business.

What is the Berman TCPA settlement?

The Berman TCPA settlement refers to a class action lawsuit involving alleged violations of the Telephone Consumer Protection Act (TCPA)—a federal law that restricts certain types of outbound communications to consumers, including robocalls, autodialed texts, and pre-recorded voice messages, unless the consumer has provided prior express written consent.

In this particular case, the defendants were accused of sending unsolicited telemarketing messages without proper consent, a direct violation of the TCPA. The case ended in a multi-million dollar settlement, with thousands of class members eligible to receive a payout as part of the Berman TCPA settlement amount per person.

Behind the Berman TCPA case

The Berman TCPA case began when consumers filed a class action lawsuit, alleging that they had received marketing communications—particularly texts—without first giving the required consent. This type of alleged violation is central to many TCPA lawsuits, which often revolve around the question of how and when consent was obtained, and whether it met the law’s requirements and previous case law decisions.

The plaintiffs argued that they had not given proper “prior express written consent” as defined by the TCPA. Even if a consumer has filled out a form or clicked a box online, courts have historically scrutinized how clearly the consent was disclosed, what it covered, and whether it was documented properly.

The outcome? The Berman TCPA settlement amount per person was determined based on the number of valid claims filed, with total settlement values often reaching into the millions. While exact individual payouts vary from case to case, they typically range from $50 to $150 per person, depending on the class size and total settlement fund.

In Berman’s case, these damages—compounded by legal fees, administrative costs, and brand reputation damage—demonstrate just how expensive non-compliance can be.

What businesses should learn from the Berman TCPA settlement

So what are the takeaways for businesses who haven’t yet prioritized TCPA compliance?

1. Ignorance is not a defense

Many companies underestimate the TCPA until it’s too late. The idea that your business is “too small” or “not doing enough marketing to worry about it” is a dangerous assumption. In fact, many TCPA lawsuits are triggered by just a few non-compliant calls or texts, especially if the same consent gap affects hundreds or thousands of leads.

2. Consent is everything

The cornerstone of TCPA compliance is having clear, documented, and provable consent before contacting consumers. This means:

• Disclosing who will be contacting them
• How they will be contacted (call, text, etc.)
• That consent is not a condition of purchase
• Capturing a time-stamped record of the agreement
  

Without proper documentation, it’s your word against the plaintiff’s—and courts generally side with the consumer if you can’t prove it.

3. Lead sources matter

The Berman case also highlights the risks of buying or using third-party leads without verifying how consent was obtained. Even if you weren’t the one who collected the lead, you are still responsible under the TCPA for ensuring consent is valid.

Businesses that rely on lead generation partners or affiliates should have strict vendor compliance checks in place. If your lead supplier can’t provide proof of consent, you’re the one on the hook—not them.

4. Class actions can escalate quickly

The TCPA allows for statutory damages of $500 per violation, or up to $1,500 per willful violation. That may not sound like much—until you multiply it across thousands of leads. As the Berman TCPA settlement shows, small errors in consent handling can become very costly, very quickly.

How TrustedForm can help you avoid a TCPA settlement

At ActiveProspect, we’ve spent years helping businesses reduce risk and prove compliance through tools like TrustedForm, our independent lead certification and consent verification product.

Here’s how TrustedForm helps:

1. Consent documentation

TrustedForm captures a real-time snapshot of the form being filled, including the page the consumer visited, what disclosures they saw, and the exact time they gave their consent. TrustedForm then generates a Certificate that can be stored and retrieved for up to five years as proof—a key asset in the event of a complaint or legal challenge.

2. Independent certification

TrustedForm acts as a third-party evidence documenting the moment of consent. This adds credibility beyond what internal logs or form data can provide. In litigation, having independent verification often makes the difference between a dismissed claim and a costly settlement.

3. Lead source transparency

Using TrustedForm helps you assess and monitor the quality and compliance of your lead sources, especially if you’re working with third-party partners. You’ll know exactly where your leads come from and whether valid consent was collected—before you dial or send a message.

4. Real-time filtering

TrustedForm can also be used to filter out non-compliant leads in real time, allowing your sales and marketing teams to focus only on leads with certified consent. This not only reduces risk but also improves performance.

Check out this guide to see how to set up TrustedForm.

Don’t wait until you’re in the headlines

The Berman TCPA settlement is just one of many cautionary tales. As consumer privacy laws grow more complex and enforcement intensifies, the cost of ignoring TCPA compliance continues to rise.

Even if your marketing budget is small or your contact volume is modest, you still have a legal obligation to ensure proper consent. And if you’re already generating or buying leads, the question isn’t if you’ll face scrutiny—it’s when.

Investing in solutions like TrustedForm is not only a proactive compliance strategy, it’s also a smart business move. By proving that consent was obtained the right way, you not only protect your brand from legal risk, but you also build trust with your audience.

To see how TrustedForm works or talk to an expert about reducing your compliance risk, request a free demo today.