Cash App Agrees to $12.5M Settlement: In recent news, Cash App, a widely-used peer-to-peer payment app, agreed to pay out a $12.5 million settlement after facing a class-action lawsuit over unsolicited text messages. This settlement comes after claims that the app sent spammy promotional messages to users without their consent, violating consumer protection laws. $147 will be paid to eligible individuals affected by these texts, marking an important legal victory for consumers. Let’s dive into the details of the case, who’s eligible, and how this settlement can impact you.
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Cash App Agrees to $12.5M Settlement
The $12.5 million settlement reached by Cash App over the spam text lawsuit highlights the importance of consumer privacy rights. As digital marketing grows, companies must pay close attention to privacy regulations and avoid the mistakes made by Cash App. If you received unsolicited texts about Cash App’s referral program, you may be eligible to receive up to $147 in compensation. Don’t miss out—file your claim before the deadline in early 2026 to make sure you get what’s rightfully yours. This settlement is more than just a financial payout; it’s a reminder of the power of consumer rights in today’s digital marketplace.
| Key Information | Details |
|---|---|
| Settlement Amount | $12.5 million |
| Estimated Payment | $88 to $147 per eligible claimant |
| Claim Period | November 14, 2019 – August 7, 2025 |
| Eligibility | Washington residents or those with Washington area codes affected by unsolicited texts |
| Deadline for Claims | Early 2026 |
| Official Website | Official Cash App Settlement Page |
Context: The Cash App Spam Text Scandal
Cash App, owned by Block, Inc., became a household name for sending money easily between friends, family, and businesses. However, in 2020, a class-action lawsuit was filed accusing the company of sending unwanted promotional messages related to its “Invite Friends” referral program. The issue was clear: users did not sign up to receive these texts, and many did not know they were even involved in a referral program.
The lawsuit accused Cash App of violating consumer protection laws in Washington State and federal anti-spam laws by sending automated text messages without the recipients’ permission. While Cash App denies any wrongdoing, they agreed to settle for $12.5 million to avoid prolonged litigation.
This settlement is significant because it showcases how companies, big or small, must respect consumer privacy and ensure that any promotional messages or offers are sent with clear consent.
What Caused the Legal Battle?
Cash App’s “Invite Friends” program was intended to encourage users to refer their friends to the app in exchange for rewards. However, the process of sending automated messages to contacts that didn’t consent to receive them led to the class-action suit.
Users who were contacted about these rewards often had no idea that they were involved in any referral program. These unsolicited texts were automatically triggered when Cash App users tried to invite friends to join the app. This method violated the Telephone Consumer Protection Act (TCPA), which restricts the use of automated texting systems for marketing purposes without user consent.
The Legal Ramifications for Cash App
The case was filed in federal court under the Washington State Consumer Protection Act, which is designed to protect residents from illegal or unfair business practices, including the unwanted receipt of marketing communications. Though Cash App denied any wrongdoing, it ultimately decided to settle the case to avoid further legal complications and public scrutiny.
This case has major implications for digital marketers, tech companies, and app developers who rely on text message marketing. It underscores the importance of following privacy laws and obtaining explicit consent before sending marketing communications to consumers.
Cash App Agrees to $12.5M Settlement: How to Claim Your Settlement Payment
If you believe you were affected by these unsolicited texts, here’s what you need to do:
Step 1: Check Your Eligibility
- You must have received a promotional text message from Cash App between November 14, 2019 and August 7, 2025.
- You should either be a Washington State resident or have a phone number with a Washington area code.
- If you received these messages and did not opt-in to the referral program, you could be eligible for a payment.
Step 2: File a Claim
- Visit the official Cash App settlement page and follow the instructions to file a claim.
- Make sure to submit your claim before the final deadline in early 2026.
Step 3: Wait for Payment
Once the claims are processed, eligible claimants will receive their payment, estimated to be between $88 to $147 depending on the number of claims filed and the amount of the settlement.
Why Does Cash App Agrees to $12.5M Settlement Matter for Consumers?
This case is a reminder that consumer rights and privacy matter, especially in an increasingly digital world. Here are some key takeaways from this settlement:
1. Respect for Consumer Privacy
Digital businesses that collect personal data or communicate with consumers must be transparent and respectful. In Cash App’s case, the violation stemmed from not obtaining consent before sending marketing messages. For any business, ensuring that customers have the choice to opt in or out of marketing campaigns is not just a best practice; it’s also legally required.
2. The Power of Class-Action Lawsuits
Class-action lawsuits like this one serve to protect consumers who might otherwise be overlooked. In this case, individuals who received spam texts from Cash App were able to come together and demand accountability.
3. Potential for Increased Regulations
As privacy issues continue to surface across the tech and marketing industries, expect more regulations and lawsuits concerning unsolicited texts, emails, and data privacy. This ruling could serve as a precedent for other companies in similar situations.
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