Blue Shield Avoids Potential TCPA Class Action Liability In Prerecorded Phone Call Case

A judge in California recently dismissed a putative Telephone Consumer Protection Act class action against Blue Shield of California, an insurance provider. In Smith v. Blue Shield of California Life & Health Insurance Co. (C.D. Cal.), the judge found that the telephone call at issue was, as a matter of law, not the type of call regulated by the TCPA, rejecting plaintiff Shannon Smith's efforts to subject Blue Shield to millions of dollars in statutory damages.

Smith had health insurance coverage through Blue Shield, which was permitted to auto-renew her policy while still making certain changes, such as raising premiums. Blue Shield was required to provide consumers such as Smith written notice of the renewal. Blue shield complied with that obligation by mailing consumers a packet of information on their upcoming insurance renewal and, having seen numerous packets come back undeliverable, Blue Shield also instituted a policy to call existing members using a