Millions of U.S. residents may be eligible for cash payments after Block Inc., the parent company of Cash App, agreed to a $12.5 million Cash App spam settlement resolving claims over unsolicited referral text messages sent without proper consent, according to court filings in Washington state.
Cash App’s $12.5M Spam Settlement
| Key Fact | Details |
|---|---|
| Settlement Amount | $12.5 million |
| Eligible Residents | Washington state |
| Estimated Payment | Up to ~$147 per claim |
| Covered Period | Nov. 2019 – Aug. 2025 |
What the Cash App Spam Settlement Covers
The Cash App spam settlement resolves a class action lawsuit alleging that Cash App enabled users to send marketing-related referral text messages to contacts who had not agreed to receive them.
At the center of the case is Cash App’s “Invite Friends” feature, which allowed users to send automated text messages encouraging recipients to download the app and sign up using a referral code. Plaintiffs argued that these messages constituted commercial advertising under Washington law, even though they were sent by individual users rather than the company itself.
The lawsuit alleged violations of Washington’s Commercial Electronic Mail Act, which requires clear consent before sending commercial electronic messages. Plaintiffs contended that recipients had no prior relationship with Cash App and had not opted in to receive promotional texts.
Block Inc. denied the allegations and said in court filings that the referral texts were user-initiated and informational rather than commercial. The company agreed to settle the case without admitting liability, citing the cost and uncertainty of continued litigation.
Legal analysts say the settlement reflects growing scrutiny of referral-based marketing systems, particularly when automation blurs the line between personal communication and advertising.
Who May Be Eligible for Cash App’s $12.5M Spam Settlement
Eligibility under the Cash App spam settlement is limited and does not apply to all Cash App users nationwide.
To qualify, individuals must generally meet all of the following conditions:
- Received Cash App referral text messages
- Were residents of Washington state at the time
- Received the messages between November 14, 2019, and August 7, 2025
- Did not provide prior express consent to receive marketing texts
Importantly, eligibility does not depend on whether the recipient ever downloaded Cash App or used its services. The legal claim focuses solely on the receipt of the messages themselves.
Consumer advocates caution that filing a claim without meeting all requirements could delay processing or lead to rejection. Claimants may be asked to attest under penalty of perjury that the information provided is accurate.
How Much Money Could Claimants Receive?
Payments are expected to vary depending on how many eligible individuals submit claims.
Settlement administrators estimate that individual payouts could range from approximately $88 to $147. The upper end of that range assumes a relatively low participation rate, while the lower end reflects higher claim volumes.
Legal fees, administrative costs, and court-approved expenses will be deducted from the total settlement fund before payments are distributed. Attorneys’ fees in class action cases typically account for 20% to 30% of the settlement amount, though final figures must be approved by the court.
“Consumers often overestimate individual payouts in class action settlements,” said Rachel Kim, a consumer protection attorney based in Seattle. “The real value lies in accountability and deterrence, not just the dollar amount.”
Why Washington State Is Central to the Case
The lawsuit was brought exclusively under Washington state law, which offers broader protections against unsolicited electronic messages than federal statutes such as the Telephone Consumer Protection Act.
Washington’s Commercial Electronic Mail Act allows recipients to sue over unsolicited commercial messages even when they are sent indirectly through referral programs. Courts have previously ruled that companies can be held responsible if their systems encourage or facilitate such messaging.
“This case demonstrates how state-level statutes can reach marketing practices that federal law may not clearly address,” said Professor Laura DeMille, a consumer privacy scholar at the University of Washington School of Law.
Other states were not included because their consumer protection laws do not impose the same obligations on peer-to-peer referral communications.
How to File a Claim For Cash App’s $12.5M Spam Settlement
Payments under the Cash App spam settlement are not automatic.
Eligible individuals must submit a claim form through the court-appointed settlement administrator. While final instructions are expected after court approval, claimants will typically be asked to provide:
- The mobile phone number that received the referral text
- Name and contact information
- A sworn declaration confirming receipt of the messages during the covered period
Claims are expected to be filed online, with paper submissions available upon request. The anticipated deadline is late 2025, though the exact date will be confirmed following the court’s final approval order.
Consumer attorneys recommend keeping screenshots or phone records if available, although such documentation may not be strictly required.
Legal Background: Referral Texts and Consent
The Cash App case highlights a recurring legal question: when does a referral message become advertising?
Courts increasingly examine whether a company’s design choices encourage mass messaging or automation. In this case, plaintiffs argued that Cash App pre-filled messages and streamlined sharing functions made it easy to send promotional texts without considering consent.
Similar lawsuits have targeted ride-sharing apps, food delivery platforms, and cryptocurrency services that rely on user-driven referrals. Outcomes have varied depending on state law and how much control companies exert over message content.
Legal experts say the Cash App settlement may influence how courts interpret responsibility in future digital marketing disputes.
Broader Implications for Digital Marketing
The Cash App spam settlement reflects heightened regulatory attention on fintech marketing practices, particularly those involving personal data and communications.
Referral programs have long been seen as low-cost growth tools, but regulators now question whether they adequately protect consumer privacy. Automated texts, even when initiated by users, can expose companies to legal risk if consent requirements are unclear.
Industry analysts say companies may respond by limiting referral features, adding clearer consent prompts, or shifting toward in-app sharing rather than SMS-based outreach.
Consumer Impact and Public Reaction
For consumers, the settlement underscores growing frustration with unwanted digital communications.
Advocacy groups say unsolicited texts can feel intrusive, especially when they originate from unknown contacts. While the financial payout may be modest, consumer groups view the case as a signal that companies must take consent seriously.
“This isn’t about punishing innovation,” said Kim. “It’s about ensuring marketing tools respect basic privacy expectations.”
What Happens Next
The court will hold a final approval hearing to determine whether the settlement is fair, reasonable, and adequate for class members.
If approved, the claims process will formally open, and payments will be issued after all submissions are reviewed. That process could take several months.
For now, legal experts advise Washington residents who believe they qualify to watch for official settlement notices and avoid third-party websites claiming to file claims on their behalf.
“This case sends a clear message,” Professor DeMille said. “Consent remains the cornerstone of lawful digital communication.”
FAQs About Cash App’s $12.5M Spam Settlement
Do I need to be a Cash App user to qualify?
No. Eligibility is based on receiving the referral text messages, not on having an account.
Will this settlement affect users outside Washington?
No. The settlement applies only to Washington state residents.
Is this related to scams or fraud?
No. The case concerns unsolicited marketing messages, not financial fraud or account security issues.
Will filing a claim affect my Cash App account?
No. Settlement participation does not affect account status or access to services.
