Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 209

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 209
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, 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
amount of damages upon a finding of a “willful or knowing” violation. There is no statutory cap on maximum aggregate exposure
(although some courts have applied in TCPA class actions constitutional limits on excessive penalties). An action may be brought by the
FCC, a state attorney general, an individual, or a class of individuals. If in the future Beeline is found to have violated the TCPA,
the amount of damages and potential liability could be extensive and materially and adversely impact Beeline’s business, financial
condition and results of operations. Accordingly, were such a