What businesses should learn from the Clover TCPA settlement case

The Clover TCPA settlement serves as a wake-up call to businesses to make sure they are proactively addressing TCPA compliance in their text message and calling campaigns. Yes, the 1:1 consent requirement may be gone thanks to recent legal shifts, but that doesn’t mean the rules no longer apply. TCPA compliance is still mandatory, and the risks are just as real as the legal landscape continues to evolve. 

Whether you’re just starting to invest in compliance efforts or still on the fence, this case illustrates just how costly missteps can be.

What is the Clover TCPA settlement?

The Clover TCPA settlement stems from a class-action lawsuit, Bobo v Clover Network, LLC. The plaintiff alleged that Clover—a point-of-sale platform provider—sent him repeated telemarketing text messages:

• Without his express written consent
• Despite his number being listed on the National Do-Not-Call (DNC) Registry
• Without an existing business relationship

Clover agreed to settle the case for up to $15 million, offering $60 per claimant to over 1 million eligible individuals. These were people who:

• Received two or more texts from Clover or its clients in a 12-month span (between July 1, 2018, and November 30, 2023)
• Had their number on the national DNC list for at least 30 days
• Had no prior business relationship with Clover

The settlement window closed on April 29, 2024. Still, the case continues to ripple through industries reliant on texting and outbound marketing.

Why it matters: TCPA liability is not theoretical

TCPA litigation is booming. Cases like Bobo v Clover make it clear that TCPA plaintiff attorneys are actively bringing TCPA cases against companies with sizable automated texting campaigns or using automated dialing technologies for calls. 

You can’t rely on assumptions like:

• “We’re texting only warm leads.”
• “Our vendor handles compliance.”
• “We didn’t know they were on the DNC list.”

Ignorance or outsourcing won’t save you from liability. A combination of non-compliant phone number data check practices and automated text campaigns, without solid proof of consent, could be an expensive mistake to recover from in a TCPA case.

Key takeaways for businesses

Here’s what every business should learn from the Clover case.

1. Text messaging IS telemarketing

Many companies still don’t treat SMS marketing with the same legal caution as phone calls. That’s a big mistake. Under the TCPA, text messages count as telemarketing (depending on the content of the message, see marketing messages versus informational messages) and are subject to the same rules and restrictions.

Lesson: Apply the same level of compliance scrutiny to SMS campaigns as you do to voice calls.

2. Consent must be explicit and documented

The law requires prior express written consent before sending automated marketing texts. That means:

• Clear language
• Opt-in checkboxes and button language are designed to indicate an agreement action to receive the messages 
• No hidden disclaimers

And most importantly, you need to keep a record of the documented consent.

 Lesson: If you can’t prove you had consent, you didn’t have it.

3. The National DNC List is not optional

Texting numbers listed on the National DNC Registry without proper consent is a direct violation, even if those numbers were acquired through a lead vendor.

Lesson: You’re responsible for compliance, even if a third party provided the leads.

4. Your risk grows with every message

The TCPA allows up to $1,500 per violation if deemed willful. Sending multiple texts to a single non-consenting individual can rack up serious penalties quickly.

Lesson: One mistake, multiplied at scale, can cost millions.

5. Consent management can’t be an afterthought

Poor documentation and a lack of real-time auditability make you vulnerable. Having a vague trail of screenshots, spreadsheet exports, or CRM notes isn’t enough. You need robust, timestamped records of consent.

Lesson: An investment in compliance software is an investment in sustainability. 

How TrustedForm helps you mitigate TCPA risk

ActiveProspect’s TrustedForm is designed to protect your business, provide more visibility around consent to contact transactions, record-keeping requirements, and mitigate many common TCPA risks. With TrustedForm, your business can:

• Mitigate TCPA risk by helping to avoid contacting consumers without documented consent.
• Verify lead authenticity to ensure the certificate matches the lead you are buying.
• Gain confidence knowing that your lead has given consent to be contacted.

By integrating TrustedForm into your lead generation and outbound marketing efforts, including SMS campaigns, you can simplify compliance, reduce risk, and focus on leads that actually want to be contacted.

Final thoughts

Despite the loss of the 1:1 consent requirement, the TCPA is still active, still enforced, and still carries serious financial consequences for violations. The Bobo v Clover TCPA settlement is a warning to the industry of the dangers of noncompliance. Clover’s outreach tactics, likely fueled by automation and scale, fell apart because of common oversights that ultimately cost them $15 million and potentially far more in reputation and customer trust.

So, what’s the move? Make compliance a core part of your business. Build it into your tech stack, your lead flow, and every form of outreach. And with the help of compliance tools like TrustedForm, you’re helping protect your brand, reducing risk, and earning trust every step of the way.

Get started with TrustedForm today.

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