Papa John’s sued for $250 million over cell phone text spam

In light of this massive class action lawsuit, I wonder if John Schnatter, Papa John’s CEO, is still questioning whether an $8 million investment in his employees healthcare is still too much.

It’s strange that a CEO could view investing in his team as a costly problem, yet could let an alleged violation of federal and state laws slip by without being addressed. His investors are clearly concerned, and as this lawsuit moves forward, they will find out how much Schnatter protected the company from these violations.

CNNMoney:

Popular U.S. pizza chain Papa John’s faces a $250 million class-action lawsuit for blasting customers with illegal text messages.

The plaintiffs allege that Papa John’s (PZZA) franchises sent customers a total of 500,000 unwanted messages in early 2010. The spam texts offered deals for pizza, and some customers complained they were getting 15 or 16 texts in a row, even during the middle of the night, according Donald Heyrich, an attorney representing the class.

“After I ordered from Papa John’s, my telephone started beeping with text messages advertising pizza specials,” Erin Chutich, one of the plaintiffs, said in a statement. “Papa John’s never asked permission to send me text message advertisements.”

And remember, just as CEOs can make decisions about their companies, consumers can and should also make decisions based on corporate CEOs.


An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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  • Adam

    this is absolute genius
    604-799-6653
    hit me up me up i want to test my spam blocker

  • http://www.facebook.com/steven.mackey Steven Mackey

    Typical liberal logic. “I am going to do everything in my power to cause you to lose your job because I care about you”

  • http://www.facebook.com/steven.mackey Steven Mackey

    I think what is going to come out is that was nothing more than a technical glitch. I never received text messages and I ordered plenty of pizzas. It is funny that everyone wants to boycott the company citing the employees as a cause. What will happen to those employees if they sell no pizzas?

  • http://www.facebook.com/steven.mackey Steven Mackey

    It is his business.

  • http://www.facebook.com/steven.mackey Steven Mackey

    No class certification has nothing to do with the merits of the case. This will be settled with coupons for free pizzas….probably delivered in a text message.

  • dirtyboy6

    Before knowing this guy was a douche, I ordered pizza from his company exactly once. Then I started getting a ridiculous volume of emails about their various deals, almost every other day–far more than any other company with a mailing list that I’m on whether or not it’s a company I’ve spent good money at. This lawsuit doesn’t surprise me at all.

  • Miro

    Yea. and to think that his franchising was let on to the U of MN campus…. (along with a few of the others…)

  • LauraBr

    And where did you get your law license? Lawyers don’t get sanctioned for filing cases. Your statement that the TCPA doesn’t require permission is an issue of fact for the jury. And a federal judge has already certified the class, so it would appear the case has some merit.

  • LauraBr

    And! According to Forbes, his figures are way off. Forbes study says it would cost him about 5 cents per pizza to comply with the Affordable Care Act.

  • Jerry

    This must be stopped!! The CEO of Papa John’s is threatening to terminate his determined and devoted workers because Obama won the election. Please sign my online petition so we can end this type of corruption! Spread the news!

    http://www.change.org/petitions/papa-john-s-ceo-john-schnatter-stop-threatening-your-workers-job-security-because-obama-won

  • Colleen

    They might have pulled it down. Lots of folks have been sending Papa John 15c taped to notes that say things like, “Here’s 15c. Stop being a Dick.”
    Papa John is having a really bad month.

  • citizen_spot

    Definitely the better deal all around. With regards to big chain pizza, I don’t think of it as grease, I think of it as “cheese sweat”. ; )

  • billylost

    honestly, anyone who’s eating this sh*t after how the CEO threatened his employees if the President was re-elected deserves to be the fat, cholesterol-laden mouth breather who receives this kind of crap

  • bejammin075

    It boggles my mind that people can be so greedy and live their lives with such shitty attitudes. Much of the Rightwing’s problems with the Leftwing are a result of them holding rediculous attitudes. Shnatter’s attitude is “#$%&*@# 11 GODDAMN CENTS A PIZZA FOR OBAMACARE!!!” when, in reality that’s not a problem, it’s a solution. A liberal with the proper attitude would say “Awesome! For only 11 cents a pizza, my workers and their families have their healthcare covered!! They now have the FREEDOM to see a doctor when they get sick” Oh, and check it out – saving your employees lives is PRO LIFE!!

  • nicho

    Plantiffs’ attorneys are pretty savvy. They’re not going to expose themselves like that.

  • thaneb

    If that plaintiff is their best example it’s a very weak case: “After I ordered from Papa John’s…” shows a pre-existing business relationship. With that in place, there’s nothing in the Telephone Consumer Protection Act that requires permission for a business to send phone, or fax messages. Schnatter’s a jerk but this seems a frivolous suit that may well warrant sanctions against the plaintiffs’ attorneys.

  • http://www.facebook.com/lindsay.hirsch.94 Lindsay Hirsch

    “It’s strange that a CEO could view investing in his team as a costly
    problem, yet could let an alleged violation of federal and state laws
    slip by without being addressed.”

    Not strange at all; he’s just another multi-millionaire RepubLIEclown who doesn’t believe the law applies to him…

  • nicho

    I wonder how many pennies per pizza that is.

  • HeartlandLiberal

    Curious, but I have been checking comments on the main Papa Johns Facebook page for over two days, and just now checked back, but I cannot FIND it now. There are multiple franchise locations showing, but I don’t see the mothership. Am I missing something, or have they pulled it down?

  • HolyMoly

    I just go with Papa Me’s pizza….I make it myself. It’s like $5 for a large pie, it’s so much tastier, and no grease!

  • http://twitter.com/BillFromDover Bill from Dover

    Couldn’ta happened to a nicer papa, John!

  • silas1898

    Most of my Mom ‘n’ Pop pizza places deliver too. Sooo much better than the mega-corp places.

  • UncleBucky

    Well. I am gonna celebrate with a pizza tonight. A LOCAL, Mom ‘n’ Pop pizza, too.

    Papa John Schnattererererer, up yours. And pay the people, stinker.

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