Grounds for Arbitration: Court Upholds Text-Based Agreement in TCPA Case

You walk into a coffee shop, give your phone number to get a free drink, and shortly after, your phone buzzes with a welcome text and a hyperlink to some terms. Weeks later, you file a lawsuit under the Telephone Consumer Protection Act (TCPA), only to be told your claims must go to arbitration. A federal court recently held that was exactly the result in Thompson v. Brew Culture, LLC, 2025 U.S. Dist. LEXIS 148060 (S.D. Miss. Aug. 1, 2025).

The plaintiff enrolled in a rewards program at a 7 Brew Coffee location by providing her phone number in person during a promotional event. She received an immediate confirmation text containing a link to the terms of service and instructions to “Reply STOP to opt out.” The linked terms included an arbitration clause governed by the Federal Arbitration Act (FAA), and applied to “any and all” disputes, including those involving affiliates and business partners like Brew Culture. It also expressly waived class actions and jury trials and extended to disputes over whether the plaintiff had opted in at all.

Thompson later filed suit, alleging she had received unauthorized marketing texts. The court found that she had adequate notice of the arbitration clause and a reasonable opportunity to reject it by replying “STOP.” Under Mississippi contract law, failure to read terms when they are clearly presented does not excuse performance. The court held that she consented by not opting out.

The court further concluded that Brew Culture, although not a signatory, could enforce the arbitration clause as an affiliate and business partner of the program provider. Relying on Polyflow, LLC v. Specialty RTP, LLC, 993 F.3d 295, 304 (5th Cir. 2021), the court held that when an arbitration agreement explicitly extends to affiliates, it can be enforced by them if the dispute arises from the covered transaction.

This case reinforces that companies using mobile sign-ups and third-party platforms should ensure their terms are promptly delivered, clearly worded, and include express references to arbitration under the FAA. In addition, any online TCPA consent form, whether for rewards programs, text marketing, or sweepstakes, should include a clear and conspicuous hyperlink to the company’s terms, which must include an enforceable agreement to arbitrate.

Courts are increasingly willing to uphold arbitration provisions delivered this way, especially where the consumer is given a meaningful opt-out option. If you need help evaluating your text marketing or rewards program disclosures, or want to review your arbitration terms, reach out.