If your organization utilizes SMS (text messages) to market directly to consumers, you could be putting yourself at risk for hefty fines from the Telephone Consumer Protection Act (TCPA) that was signed into law more than 30 years ago.
While sending marketing texts to a large or small number of members or customers is a common practice for all manner of companies that market directly to consumers, it’s crucial to ensure that you have the appropriate permissions, have provided appropriate disclosures, and have the opportunity to opt-out/in for marketing texts.
Failure to do so would result in a significant fine of $1.5 million, which could triple to $4.5 million if you fail to self-report and are contacted by the FCC or your regulator about the violation.
What kinds of communications does this apply to?
- Calls or texts to those listed on the National Do Not Call Registry
- Unsolicited calls to residential or cell phones using automated dialing or pre-recorded messages
- Unsolicited texts to cell phones
TCPA violations can result in penalties of up to $500 per violation, with willful violations trebled up to $1,500 per violation. There is no cap on statutory damages, so thousands of violations can result in millions of dollars in penalties.
Possible Fines for Violations:
- $500 for each violation of the National Do Not Call Registry
- $500 per phone call/text that violates the TCPA rules
- $1,500 per phone call/text if the consumer can show that the business violated TCPA laws knowingly and willfully
- Civil penalties of up to $10,000 per call for intentional violations of federal robocall laws.
Think you might be in violation of these rules or want help auditing your existing text marketing program? Contact me or your Financial Services Industry advisor at RKL to help you navigate compliance with TCPA and other compliance related concerns.
