On April 15, a fintech company removed a putative class action to the U.S. District Court for the Western District of Washington that alleged the company’s referral marketing program violated Washington’s Commercial Electronic Mail Act (CEMA) and the state’s Consumer Protection Act (CPA). The complaint was originally filed on March 3 by a Washington consumer in King County Superior Court. The defendants removed the case under the Class Action Fairness Act, citing an estimated amount in controversy of approximately $13.5 million based on at least 7,200 Washington residents who may have received referral texts.

According to the complaint, the fintech company operates a referral program through its mobile app that compensates existing users up to $60 per successful referral. The complaint alleges the company assists in the transmission of unsolicited commercial text messages to Washington residents by supplying pre-composed referral messages with personalized sign-up links, enabling users to import phone contacts, and facilitating the mass text transmission — all without obtaining recipients’ consent, as required under CEMA. The complaint further alleges the app includes features designed to maximize outbound text volume, such as prompts encouraging repeat messages and time-based incentives, and that the company does not require users to verify recipient consent or provide an opt-out mechanism.

The complaint asserts two causes of action, a violation of CEMA and a per se violation of the CPA, seeking class certification, injunctive relief, $500 in statutory damages per violation, treble damages, and attorneys’ fees.