$12.5M Cash App Settlement: How to Claim Your Share & Key Payment Dates

Digital payment apps have made our everyday life easier. Today millions of people send and receive money through mobile applications. One of these popular apps is Cash App, which is used by a large number of people in the US. But recently this app came into the limelight because a class action lawsuit has been filed on it.

The lawsuit is related to consumers in Washington State, who alleged that Cash App misused one of its features to send them Referral Messages without permission. Now the company and its parent company Block Inc. have decided to settle for \$12.5 million. Thousands of affected consumers will benefit from this.

Let us understand in detail what this matter is, who will be entitled to this compensation and how the payment process will be completed.

Start of the lawsuit: Why did Cash App come into controversies?

Cash App included a “Invite Friends” feature in its application. The purpose of this feature was to invite existing users to invite their friends or family members to download and use the app. In return, the user was given some reward or bonus.

The problem started when it was found that referral messages started being sent to many people without their permission. These messages disturbed the consumers and were considered a violation of the Consumer Protection Law of Washington State.

A consumer Kimberly Bottoms filed a case in the Washington District Court (Western District) of the US regarding this issue. The complaint said that the company sent unsolicited messages without the permission of the consumers and this action is not only unethical but also illegal.

Which laws were violated?

In this case, the company has been accused of violating several laws. The main ones are:

• TCPA (Telephone Consumer Protection Act): This is a statute that secures consumers against unsolicited calls/messages.
• Washington Consumer Protection Act: This act provides rights to the consumer and avoids unfair business practice of any type.
• Washington Consumer electronic mail act: This bar is formed by the act against any sending of emails or messages without consent.

The direct purpose of these laws is to protect the privacy and personal information of consumers. But when Cash App sent unsolicited messages using the referral feature, it proved to be a violation of all these acts.

Company’s response: did not admit fault but settled

After the lawsuit, Block Inc. and Cash App did not admit in court that they had made any mistake. But to avoid a long-term legal battle and prevent damage to their image, they thought it better to settle.

That’s why they agreed to settle for \$12.5 million. This amount will be given to the affected consumers of Washington state, along with the administrative expenses and lawyers’ fees associated with it will also be deducted from it.

How will the compensation be distributed? – Pro Rata distribution

This entire amount of \$12.5 million will not be distributed directly to the consumers. First of all, lawyers’ fees and administrative expenses will be deducted from this. After this, the remaining amount will be given to the consumers.

The method of distribution will be Pro Rata Method i.e. the more people claim, the lesser will be the amount per person.

• If 100,000 people claim, then each person can get \$125 to \$147.
• If 200,000 people claim, then the payment will decrease to \$88 to \$110.
• If 500,000 people claim, then the payment can decrease to \$50 or less.

Therefore, those who have received referral messages without consent are being advised to file their claim immediately.

Who will be eligible (Eligibility Criteria)?

To get compensation from this settlement, the consumer has to fulfill some conditions:

1. The person should be a resident of Washington State.
2. He must have received a referral message from Cash App.
3. The area code of the phone number on which the message is received must be Washington.

If all these three conditions are met, then the person will be entitled to get compensation under this settlement.

When and how will the payment be received?

At present, the final approval is awaited by the court. After this, an official settlement website will be launched. People will be able to register their claims through this website.

Once the payment process is completed, the consumer can receive the amount in the following ways:

• Digital payment through PayPal
• Direct deposit to the bank account
• Paper check which will be sent to their address by post

What should the affected consumers do?

If you live in Washington and have received an unauthorized referral message from Cash App, here’s what you should do:

Make sure that the area code of the message received on your phone number is associated with Washington.

• As soon as the claim website goes live, apply immediately so that your name can be included in the list of valid claimants.

Why is this case important?

This lawsuit is not just limited to the compensation of $12.5 million, but the bigger lesson from this is how important it is to protect consumer rights and privacy in the digital age.

Nowadays big tech companies adopt new methods for promotion and marketing. But if these methods violate consumer permission and security rules, then they may have to face legal action.

This case of Cash App shows that reaching out to consumers without consent is wrong and companies may have to face serious consequences for this.

Conclusion

This \$12.5 million settlement case related to Cash App teaches us that transparency and consent are most important when using digital facilities. Violating consumer privacy not only breaks trust but can also lead to huge financial and legal damages for companies.

This settlement is a relief news for the affected people of Washington state. Now it remains to be seen how many people file a claim and how much money they actually get. But it is certain that this case has once again emphasized the importance of consumer rights.

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