TCPA Suit Over Hotel Text Messages Dismissed on Summary Judgment—Booking Confirmations are Not Advertisements

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California dismissed a proposed Telephone Consumer Protection Act class action against Agoda Company Pte., ruling that the subject text message was not an advertisement for Agoda’s app.

Agoda runs a worldwide hotel reservation service that customers can use through the company’s website or through its smartphone app. The suit, brought by consumer An Phan, was initially filed in state court but was removed by the defendants. According to the complaint, Agoda is a subsidiary of Priceline.

Phan alleged that in order to book a hotel room using the advertising data user list service, customers must submit their name, e-mail address, country of residence, and mobile phone number. Once the booking is complete, customers receive a text message reading: “Good news! Your Agoda booking [number] is confirmed. Manage your booking with our free app.”

Judge Beth Labson Freeman agreed with Agoda and ruled that the confirmation texts do not violate the TCPA even though they are sent with an automated dialing system because their purpose is limited to confirming bookings and encouraging customers to manage their bookings via the app. The texts are sent as part of an “ongoing business transaction.”

In the order granting Agoda’s motion for summary judgment, Judge Freeman wrote: “Here, the context and the content of the messages demonstrate that the purpose of the messages was not to advertise or telemarket, but instead was directly cabined to facilitating and completing an existing transaction.”

Phan argued that Agoda’s inclusion of a link to its app in the confirmation text was “superfluous” advertising for the app. The Court disagreed, stating that the app is “readily analogized” to Agoda’s website. According to the ruling, “Though the app may fairly be considered a product or service of Agoda, the messages simply cannot be said to advertise the commercial availability of this product or service under the law.”