The TCPA regulates how businesses can contact consumers through phone calls, text messages, and faxes. Even those not in the telemarketing industry must know the boundaries the TCPA has established. If your business markets itself, you must have a decent command of what you can and can’t do. For example, although SMS marketing is often a viable outlet for connecting with potential clients and customers, it would behoove you to know how to do it without violating federal telecommunications laws.
Some violations stem from misunderstandings about the law, while others come from failing to keep up with changes. Here are some key rules and common mistakes businesses make that lead to unintentional TCPA violations.
Rules That All Business Owners Should Be Aware Of
One of the most significant aspects of the TCPA is the requirement for prior express written consent. Businesses must obtain this consent before calling or texting consumers using automated systems, pre-recorded messages, or robocalls. This applies to both marketing and informational messages. Consent must be documented and stored in case of any future disputes.
Another important rule involves the National Do Not Call (DNC) registry. Consumers can place their phone numbers on the national DNC list, ostensibly prohibiting businesses from contacting them without consent. According to TCPA guidelines, businesses must check and scrub their contact lists against the DNC registry every 31 days. Failing to do this can lead to unwanted contact and result in significant fines or class action lawsuits for many thousands of violations at a time.
The mere failure to scrub contact lists against the DNC registry can lead to government fines as high as $43,792 per violation, according to the Federal Trade Commission (FTC).
Businesses must also comply with restrictions on the time of day they can contact consumers. Under the TCPA, telemarketing calls are limited to between 8 a.m. and 9 p.m. local time. If a business calls outside these hours, even unintentionally due to time zone differences, those calls violate the law.
Common Mistakes That Businesses Make
One common TCPA violation involves improper consent tracking. Businesses often obtain consumer consent but fail to track it correctly, store it securely or update it when circumstances change. For example, if a consumer revokes their prior consent but the business continues to contact them, that violates the TCPA. Review your consent records regularly and ensure they are up-to-date.
Businesses also need to pay more attention to the rules around autodialers. Many think that calling existing customers doesn’t require the same level of consent as new prospects. However, the TCPA often applies even if there is a pre-existing relationship with the customer. Consent is still required if an autodialer is used or if the call is a pre-recorded message.
Another common mistake is not providing consumers with a clear and simple opt-out option. Businesses are required to give consumers an easy way to revoke their consent. This can be done through a “STOP” option for text messages or a clear message at the end of a phone call. (You’ve likely seen these in texts that you have received.) Failing to include these options results in a failure to comply with TCPA rules.
Outsourcing telemarketing services to third-party vendors is another area where businesses often make costly mistakes. While the vendors may handle the outreach, the company is often still liable for any TCPA violations that occur on their behalf. It’s important to ensure that third-party vendors fully comply with all TCPA requirements and that their practices are regularly overseen or audited.
Take A Step Toward Ensuring Compliance
Businesses must stay on top of TCPA regulations to avoid unintentional violations that lead to costly penalties and other claims. If your company uses telemarketing or automated communications, it is important to ensure you comply with the TCPA’s rules. To learn more about how to protect your business from potential violations, schedule a free consultation today.
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