In today’s digital age, when money transactions are completed with just a few taps on a mobile screen, payment platforms like Cash App have become an integral part of people’s lifestyles. These apps have not only simplified financial transactions but also accelerated personal and business payments.
But with greater convenience comes greater responsibility—especially when it comes to consumer privacy and permission. Messages sent without users’ consent forced Cash App to face legal challenges.
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$12.5 million case: What happened?
In early 2025, Cash App settled a $12.5 million class action settlement. The lawsuit alleged that the company sent promotional and referral messages to users without their consent. These messages often encouraged them to download the app, take offers, or use referral codes.
Legally, the case involved the Telephone Consumer Protection Act (TCPA), a US law that prohibits companies from sending automated or marketing messages without permission.
What did users get?
According to the settlement, users who received unauthorized Cash App messages between 2018 and 2023 are eligible to receive a payment of up to $147.
This payment isn’t just money; it’s a symbol of the seriousness of user privacy and consent.
Background: How did the case begin?

Between 2018 and 2023, numerous people complained that they received referral or promotional messages from Cash App, even though they had never given permission. The messages typically read:
- “Invite friends and earn rewards.”
- “Claim your bonus now.”
These messages were considered violations of the TCPA. The company was accused of sending messages through an automated system, affecting the privacy of thousands of people.
After a lengthy investigation and litigation, Cash App agreed to a $12.5 million settlement to resolve the dispute and restore user trust. However, the company did not admit to any “intentional wrongdoing.”
Who is eligible?
Eligibility Criterion | Details |
---|---|
Location | Must be a resident of the United States |
Timeframe | Received unsolicited Cash App texts between 2018 and 2023 |
Message Type | Messages sent without registration or user-initiated referral |
Claim Requirement | Must submit a valid claim on the official settlement website |
Exclusion | Non-U.S. residents are not eligible |
If you have received such messages from Cash App, you can visit the settlement website and fill out a simple online form.
Cash App’s statement: “We disagree, but choose resolution.”
In its official statement, Cash App stated that the company disagrees with the allegations but decided to settle to avoid lengthy legal proceedings and expenses.
The company also stated that this settlement does not equate to an admission of wrongdoing but rather a practical step to maintain user trust. The $12.5 million amount will be distributed in three parts:
- Payments to affected users
- Claim processing costs
- Lawyer and court fees
How much will each user receive?
Each eligible individual can receive a maximum payment of up to $147. However, the final amount will depend on the number of people submitting claims. If the number of claimants is low, the per-person payment may be higher.
This amount is not a fine but compensation—a sign that digital privacy is now being taken seriously.
How to file a claim?
- Visit the official Cash App TCPA settlement website.
- Fill out the online form—enter your name, contact details, and verification of the message you received.
- Submit before the deadline (announced by the authorized settlement administrator).
- Choose a payment method—direct deposit or paper check.
- You will receive a notification via email or post once your claim is approved.
The Importance of This Case
This case isn’t just about money or compensation. It sets a legal precedent that tech companies must prioritize user consent and data privacy.
Key Learnings:
- Consent is mandatory: No marketing messages can be sent without consent.
- Data Privacy = Trust: If companies respect user privacy, their brand becomes trustworthy.
- Legal Rights Exist: Laws like the TCPA give consumers the right to seek justice against privacy violations.
What is a class action?
A class action is a legal process in which multiple individuals file a collective lawsuit based on similar complaints. In the Cash App case, the lawsuit was filed on behalf of thousands of users. Its advantages:
- Low cost: Each individual does not need to hire a separate lawyer.
- Equal outcome: Everyone receives equal compensation and justice.
- Fast resolution: Larger cases can be resolved quickly through collective action.
Impact on Cash App’s image
Although this case temporarily impacted Cash App’s reputation, the company’s popularity remains intact.
Following the settlement, Cash App strengthened its privacy policies, marketing systems, and user consent mechanisms to prevent similar situations from occurring in the future.
Lessons for the Fintech Industry
The Cash App case has warned the entire fintech sector that user data cannot be shared without a consent agreement.
Key impacts:
- Strengthened oversight: Agencies like the FTC and FCC are now taking stricter measures on data privacy.
- Ethical Marketing: Companies are now being advised to adopt opt-in messaging systems.
- Consumer Empowerment: People are becoming more aware of their rights.
How to Protect Yourself
- Grant only necessary permissions to apps.
- Turn off “Promotional Notifications.”
- Read the privacy policy carefully.
- Report unwanted messages to the FTC or State Attorney’s Office.
Conclusion
Cash App’s $12.5 million settlement isn’t just a legal case; it symbolizes a victory for consumer rights in the digital age. It’s a reminder that our consent and privacy have their own price, and when companies cross them, accountability is warranted.
This is an opportunity for Cash App to regain user trust and a signal to consumers that their voices matter.
FAQs
Q. Who is eligible for the Cash App settlement?
A. U.S. residents who received unsolicited Cash App texts between 2018 and 2023.
Q. What type of messages are covered?
A. Messages sent without user registration or user-initiated referral, including promotional or referral texts.
Q. How much can I receive?
A. Each eligible individual may receive up to $147, depending on the total number of claims submitted.
Q. How do I file a claim?
A. Submit a valid claim online on the official Cash App TCPA settlement website before the deadline.
Q. Are non-U.S. residents eligible?
A. No, only residents of the United States can participate in this settlement.