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Arbitrator to Hear Dispute over Unauthorized Text Messages Sent by Beats Music

Thursday, September, 3, 2015


An arbitrator will determined whether and how much Beats Music streaming service will need to pay for sending a text message to one of its subscribers. The subscriber, Megan Craddock, filed a class action lawsuit against the company, claiming they violated the federal Telephone Consumer Protection Act by sending her a text message about special offers on the company’s website.


Beats Music requested the case be moved to arbitration and a US District Judge agreed. Beats claims its user terms and conditions addresses resolution of such disputes.


Craddock downloaded a free seven-day trial of the streaming app to her mobile phone in January 2014. The app alerts consumers that by clicking “start” they are agreeing to the company’s terms and privacy policy. Shortly after the download, Craddock received a text message from Beats. She claimed she never consented to receiving texts and filed a lawsuit in December 2014 on behalf of herself and everyone who had received unauthorized texts from Beats in the four previous years.


Beats argues the case falls under its dispute resolution section concerning controversy or claim, and that it must be directly negotiated between the user and Beats. If no resolution is reached after 30 days, arbitration is the next step.


There is also dispute over whether the case should have ever been filed against Beats or whether it would have been more appropriate to file against AT&T. Some speculate an arbitrator will find in favor of Beats and Craddock will need to pursue other avenues if she wants to resolve the issue in her favor. The case is currently stayed pending arbitration.