Appeals Courts Further Muddy Phone-Call Privacy Laws

Law360, New York (April 1, 2014, 9:31 PM EDT) -- Two recent appeals court decisions reviving lawsuits against State Farm Bank FSB and Hilton Worldwide Inc. over the placement and recording of cellphone calls have left companies confused as to how to comply with clearly outdated privacy statutes, as well as vulnerable to consumer class actions, attorneys say.

The Eleventh and Ninth circuits dealt blows to the defense bar in separate decisions issued eight days apart that rejected the lower courts' interpretation of “called party” under the Telephone Consumer Protection Act and the provision of California Penal Code Section 632.7 that prohibits eavesdropping on calls made from cellphones.

In the TCPA...

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