Eric Berman was quoted in Law360 on October 12, 2017, regarding Venable's recent litigation win for its client, Associated Community Services (ACS), against a purported class action that tested the boundaries of the so-called nonprofit exemption to liability under the Telephone Consumer Protection Act (TCPA). While the TCPA generally prohibits telephone solicitations to residential telephone subscribers whose phone numbers appear on the national do-not-call registry, it exempts calls made by or on behalf of a tax-exempt nonprofit organization.
Berman told Law360 that he was pleased the court chose to affirm the nonprofit exemption applied to any group that the Internal Revenue Service has classified as tax exempt. He said that the case had attempted to create carveouts within the nonprofit exemption for fundraising calls and that the court correctly rejected this move.
"This is a very significant decision, as it keeps the scope of the exemption intact," Berman said.