Overview
Businesses that rely on text message marketing just received some welcome news from the Seventh Circuit: consumers may no longer be able to bring private Do-Not-Call (DNC) claims based solely on marketing texts under one key provision of federal law. The decision significantly narrows a potential source of class action liability for companies operating in Illinois, Indiana, and Wisconsin.
In Steidinger v. Blackstone Medical Services, the U.S. Court of Appeals for the Seventh Circuit held that text messages are not “telephone calls” under Section 227(c)(5) of the Telephone Consumer Protection Act (TCPA). The ruling reflects a strict reading of the statute and may reshape the growing wave of DNC litigation.
Seventh Circuit Holds Text Messages Are Not "Telephone Calls" Under the TCPA
The plaintiffs in Steidinger alleged that Blackstone Medical Services sent unwanted marketing text messages promoting home sleep testing services, including messages sent after recipients had opted out or registered their numbers on the National Do-Not-Call Registry. They brought a putative class action under the TCPA’s DNC provisions.
The Seventh Circuit rejected those claims, focusing on the statutory text. Section 227(c)(5) permits consumers to sue for receiving multiple unlawful “telephone calls.” According to the court, that term means exactly what it says: telephone calls, not text messages. Looking to the ordinary meaning of the phrase when Congress enacted the TCPA in 1991, the court concluded that a “telephone call” referred to voice communications and did not encompass text messaging technology, which did not exist yet.
Perhaps most importantly, the court noted that Congress distinguished between “calls” and “messages” separately elsewhere in the TCPA. Because Section 227(c)(5) refers only to “telephone calls,” the court declined to expand the statute’s reach to text messages.
What the Decision Means for Businesses Using SMS Marketing
The decision is a significant development for businesses facing increasing TCPA litigation over marketing texts. By holding that text messages fall outside Section 227(c)(5)’s private right of action, the Seventh Circuit effectively eliminates private DNC claims based solely on text messages in Illinois, Indiana, and Wisconsin.
For companies that use SMS marketing, the ruling may substantially reduce class action exposure under this particular TCPA provision. Given the statutory damages available under the TCPA, even seemingly minor compliance issues can quickly snowball when asserted on behalf of a large class of consumers.
The decision is also notable because it reflects courts’ increasing willingness to apply a strict textual reading of the TCPA following the U.S. Supreme Court’s 2025 decision in McLaughlin Chiropractic Associates v. McKesson Corp., which limited judicial deference to FCC interpretations of the statute.
Why Companies Should Not Abandon TCPA Compliance Efforts
That said, businesses should resist the temptation to view Steidinger as a free pass for SMS marketing.
First, the decision is limited to the TCPA’s private DNC cause of action. Other TCPA provisions may still apply to SMS campaigns. Second, many states have enacted telemarketing and consumer protection laws that expressly regulate text messages and may provide independent causes of action. Finally, regulatory scrutiny and enforcement risks remain.
The decision also contributes to a developing split among courts regarding how text messages should be treated under the TCPA, making additional appellate review and potentially Supreme Court review, increasingly likely.
Key Takeaways for Businesses That Use Text Message Marketing
Businesses that engage in text message marketing should consider the following:
- Private DNC claims based solely on marketing texts are significantly less viable in Illinois, Indiana, and Wisconsin.
- Existing consent, opt-out, and do-not-contact procedures should remain in place.
- Companies operating nationally should continue monitoring developments because other jurisdictions may reach different conclusions.
For now, Steidinger represents a significant victory for businesses that rely on SMS marketing, narrowing a growing area of TCPA litigation risk. While companies should welcome the decision, they should do so with cautious optimism. Robust TCPA compliance remains an essential component of any SMS marketing program.
