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AI Call Monitoring Lawsuits | TCPA Violations

Written by Joseph Lyon on . Posted in Class Action.

The consumer privacy lawyers at The Lyon Firm are investigating a range of personal privacy violations involving new software that provides AI robocall and AI call monitoring services. Some new AI TCPA lawsuits have been filed on behalf of plaintiffs nationwide following privacy intrusions. Contact The Lyon Firm to learn more about AI call monitoring that may violate existing wiretapping laws.

Is AI Call Monitoring Legal?

In short, yes, AI call monitoring is legal. However, companies who engage in any call monitoring are subject to some legal considerations concerning personal privacy, transparency, and prior consent.

Many telemarketing companies are now using AI software to record or monitor customer calls, which must adhere to federal and state wiretapping laws, which vary in their respective consent requirements. Federal law requires only one-party consent (one party knows and agrees to the recording), but some states, such as California (CIPA), Delaware, Florida, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Pennsylvania, and Washington, require two-party consent, which means everyone on the call must consent to the recording or monitoring.

It is important for businesses using AI-generated voices, AI recording devices or call monitoring to disclose that to the consumer, as required by regulations like the TCPA. The Telephone Consumer Protection Act (TCPA) classifies AI-generated voice calls as “robocalls,” requiring businesses to obtain prior express written consent before making marketing or promotional calls. TCPA laws and wiretapping laws have been cited in some AI call monitoring lawsuits, such as the following:

  • Dialpad, an AI analytics software provider, is facing a class action lawsuit for allegedly recording and using customer calls to train AI models in violation of California privacy law. The class action attorneys claim the company has illegally wiretapped and recorded the private conversations of consumers who called the T-Mobile customer support line. Although the callers were informed that the calls may be recorded, they were not told their conversations would be shared with a third party.
  • The Galanter v. Cresta Intelligence lawsuit alleges that the AI vendor, Cresta, recorded, transcribed, and analyzed a customer’s call without proper knowledge or consent, violating California’s CIPA law.
  • The Navy Federal Credit Union Lawsuit questions the use of AI call recording technology to record and analyze phone calls without customers’ knowledge or consent.