Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 55

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 55
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 which may lead to regulatory
investigations, governmental enforcement actions or private causes of action with respect to Beeline’s compliance.

34

To resolve issues raised in examinations
or other governmental actions, Beeline may be required to take various corrective actions, including changing certain business practices,
making refunds or taking other actions that could be financially or competitively detrimental to its. In addition, certain legislative
actions and judicial decisions could give rise to the initiation of lawsuits against it for activities it conducted in the past. Furthermore,
provisions in Beeline’s mortgage loan and other loan product documentation, including but not limited to the mortgage and promissory
notes it uses in loan originations, could be construed as unenforceable by a court. Beeline expects to incur continued costs in complying
with applicable government laws and regulations.

If Beeline fails to comply with
laws and regulations regarding its use of telemarketing, including the TCPA, it could increase its operating costs and materially and
adversely impact its business, financial condition and results of operations, and prospects.

In its mortgage lending business,
Beeline engages in outbound telephone and text communications with consumers and accordingly must comply with a number of laws and regulations
that govern said communications and the use of automatic telephone dialing systems (“ATDS”), including the TCPA and Telemarketing
Sales Rules. The Federal Communications Commission (“FCC”), and the FTC have responsibility for regulating various aspects
of these laws. Among other requirements, the TCPA requires Beeline to obtain prior express written consent for certain telemarketing calls
and to adhere to “do-not-call” registry requirements which, in part, mandate Beeline maintain and regularly update lists of
consumers who have chosen not to be called and restrict calls to consumers who are on the national do-not-call list. Many states have
similar consumer protection laws regulating telemarketing. These laws limit Beeline’s ability to communicate with consumers and
reduce the effectiveness of its marketing programs. The TCPA does not distinguish between voice and data, and, as such, SMS/MMS messages
are also “calls” for the purpose of TCPA obligations and restrictions.

For violations of the TCPA, the
law provides for a private right of action under which a plaintiff may recover monetary damages of $500 for each call or text made in
violation of the prohibitions on calls made using an “artificial or pre-recorded voice” or an ATDS. A court may treble the