Facts

Michael Chesbro filed a class action against Best Buy Co. Inc. in connection with its customer loyalty program known as the Reward Zone Program.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that Best Buy utilized the customer phone numbers that it obtained through its Reward Zone program to place automated calls or send targeted mail. Plaintiff alleged he was automatically signed up for the Reward Zone program without his knowledge when he signed up for a credit card that allowed him to make installment payments on his purchase.

Plaintiff contended that Best Buy's practice violated Washington's Automatic Dialing and Announcing Statute, the Washington Consumer Protection Act, and the federal Do-Not-Call regulations under the Telephone Consumer Protection Act.

DEFENDANT'S CONTENTIONS:
Defendant contended it only contacted customers about changes in the program and the expiration of reward certificates.

Damages

Plaintiff sought to recover actual monetary loss or receive up to $500 for each TCPA violation.

Result

The parties agreed to settle the dispute for $4.55 million. The settlement would provide a net fund of $3,212,500 to eligible class members, plus administrative costs of $195,000. Under the settlement, each settlement class member may be entitled to receive $50 to $100 per call based on an estimate.