• by Wendy Davis  @wendyndavis, December 31, 2014

Mobile social network Path can't immediately appeal a decision allowing a consumer to proceed with a potential class-action lawsuit over unwanted text messages, a panel of the 7th Circuit Court of Appeals has ruled.

The appellate judges didn't give a reason for their ruling, issued last week.

The move lets stand a prior ruling by U.S. District Court Judge Samuel Der-Yeghiayan in the Northern District of Illinois, who allowed state resident Kevin Sterk to pursue allegations that Path violated the federal Telephone Consumer Protection Act. That law prohibits companies from using automated dialers to send users text message ads.

Sterk alleged in his complaint that he received a text message stating that another person -- Path user Elizabeth Howell -- wanted to show him photos on the service. The text also contained a link to a site where Sterk could register to join the social network.

Path argued that the case should be thrown out on the ground that its system doesn't use “automated dialers.” The company said its system only sends SMS messages to people whose phone numbers were provided by users. Path contended that “human intervention” -- users' uploading of their friends' numbers -- means its system isn't an automated dialer.

After Der-Yeghiayan rejected Path's argument, the company asked the 7th Circuit to agree to hear an immediate appeal.

“The decision below is wrong and warrants immediate review,” Path unsuccessfully argued in its appellate papers. The company added that Der-Yeghiayan's decision marked a “dramatic expansion” of the federal telemarketing law, and could pose new legal risks for anyone who sends text messages.

Path isn't the only company that allegedly tried to grow its network by spamming people. Lyft also is facing a potential class-action lawsuit for allegedly running an “aggressive marketing campaign” that sends people unwanted SMS messages.

That complaint, filed earlier this year by Washington state resident Kenneth Wright, centers on Lyft's “invite friends” program, which allows Lyft users to send SMS invitations to their contacts.

Lyft and Wright are currently trying to resolve their battle through mediation, according to papers filed with the U.S. District Court in the Western District of Washington.