Emerging Trend: Another Federal Court Finds that Predictive Dialers Fall Outside the TCPA's Definition of an ATDS
2 min read
Aug 19, 2019
In 2018, the D.C. Court of Appeals issued ACA International, et al. v. FCC that set aside key determinations of the FCC's interpretations of what qualifies as an automated telephone dialer service (ATDS). The D.C. Circuit concluded that the focus of the Telephone Consumer Protection Act's (TCPA) definition of an ATDS should be on the device's "present capacity" to store and produce telephone numbers, as opposed to its "potential functionalities" or "future possibility." Since this decision, courts have remained split as to what qualifies as an ATDS, although there is a growing trend of courts concluding that a predictive dialer is not an ATDS unless it has the present capacity to store and produce phone numbers randomly and sequentially. On July 30, 2019, the Northern District of Texas joined that trend with its decision in Adams v. Safe Home Security Inc.
In Adams, the plaintiff pursued relief under the TCPA on allegations that Safe Home Security called her many times to collect on a past-due debt—even after she requested no contact—and that when she answered the calls, there was a pause for several seconds before a live representative spoke. While the Court ultimately held that the plaintiff's complaint sufficiently alleged the use of an ATDS, the Court rejected the FCC's guidance on grounds that ACA International v. FCC invalidated the 2003, 2008, and 2015 FCC Orders. Instead, the Court analyzed whether an ATDS applies to predictive dialers based on the plain language of the statute. The TCPA defines an ATDS as "equipment which has the capacity—(A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers."
Ultimately, the Court reviewed the statutory definition of an ATDS and found that "'using a random or sequential number generator' modifies both 'to store' and 'to produce.'" The Court also found that predictive dialers fall outside the definition of an ATDS. Courts' continuing refusal to follow FCC orders in reliance upon ACA International v. FCC in favor of review and analysis of the TCPA's plan statutory language is an encouraging trend.
Featured Insights

Press Release
May 20, 2026
Hinshaw Releases America 250 Book Exploring Insurance's Role in Building the United States

Consumer Crossroads: Where Financial Services and Litigation Intersect
May 19, 2026
OCC's Final Escrow-Interest Preemption Rules Bolster the Second Circuit’s Cantero Decision

Webinar
May 19, 2026
Scott Seaman Speaks on Making Decisions in Difficult Risk Environments

Consumer Crossroads: Where Financial Services and Litigation Intersect
May 14, 2026
Key Takeaways from the 2026 MBA Legal Issues and Regulatory Compliance Conference

Consumer Crossroads: Where Financial Services and Litigation Intersect
May 14, 2026
SCOTUS Confirms: Federal Courts Retain Power to Affirm or Vacate an Arbitration Decision

In The News
May 13, 2026
Hinshaw Contributes Chapters to “Wrongful-Death and Survival Actions” IICLE Handbook

In The News
May 12, 2026
Hinshaw GC Steve Puiszis Discusses Protecting Attorney-Client Privilege in an AI Age

Event
May 12-13, 2026
Mitchel Chargo Speaks on the Rapidly Evolving Cannabis Industry

Consumer Crossroads: Where Financial Services and Litigation Intersect
May 11, 2026
Tennessee Reaches Settlement with Mariner in Multistate UDAAP Enforcement Action

Press Release
May 11, 2026
Ali Degan Elected to the Fellows of the American Bar Foundation

Press Release
May 11, 2026
John Weedon Re-Elected to the Jacksonville Bar Association’s Board of Governors in 2026

