Text message marketing, also known as SMS marketing, is becoming a popular marketing channel. As businesses rush to integrate SMS into their strategies, it’s crucial to understand the relevant laws.
Even minor oversights can result in significant fines and harm your company’s reputation.
Key Laws Governing SMS Marketing
Several authorities regulate telemarketing communications, including SMS marketing. These laws adapt to technological changes and evolving business practices. Below are some key laws:
1. Telephone Consumer Protection Act (TCPA)
The TCPA, overseen by the Federal Communications Commission (FCC), is the primary U.S. telemarketing law. It regulates unsolicited texts and calls, focusing on consumer privacy through measures such as:
- Autodialer restrictions: Limits on automated calls/messages using automatic telephone dialing systems (ATDS).
- Identification: Companies must identify themselves and state their reason for contact.
- Hours: Communications should be between 8 a.m. and 9 p.m.
- Opt-out options: Consumers can opt out at any time, and businesses must provide this option.
- Consent: Companies need prior express written consent before sending marketing messages.
2. CAN-SPAM Act
The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM Act) regulates unsolicited emails and offensive content. It also applies to SMS marketing through the TCPA, with the FCC overseeing SMS communication laws.
3. Cellular Telecommunications Industry Association (CTIA) Guidelines
The CTIA, a wireless industry trade group, can block non-compliant businesses. Its guidelines, known as Messaging Principles and Best Practices, elaborate on the TCPA and CAN-SPAM Act.
Express Written Consent
This is vital for legal SMS marketing. The contract between businesses and customers must meet five criteria:
- Disclose the purpose of collecting contact information.
- Predict how often customers will receive messages and their content.
- Provide access to the terms and conditions.
- Allow immediate agreement termination via direct reply.
- Inform customers about messaging and data rates.
International Laws
International consumer privacy laws, like the European Union’s General Data Protection Regulation (GDPR), govern all communication within their territories.
Canadian laws, under Canada’s Anti-Spam Legislation (CASL), align with the TCPA and CTIA.
Penalties for Non-Compliance
Violations can result in hefty fines. Each infraction incurs a $500 fine, increasing to $1,500 for intentional breaches. Businesses are responsible for their messages, even when using third-party services. Damages are uncapped, and insurance might not cover statutory violations.
Avoiding Violations
Here are ways to stay compliant:
- Include necessary information: Your first message to a new subscriber should include your business name, reason for messaging, frequency, rates disclaimer, privacy policy, and opt-out instructions.
- Use keyword short codes: Customers can sign up by texting a code to a specified number.
- Consider a double opt-in: After a customer provides their phone number, ask them to confirm their subscription.
- Maintain commitments: Stick to your promised texting schedule to avoid violations and customer irritation.
- Provide incentives: Offer discounts, limited-time offers, or additional features to entice sign-ups.
Top Text Messaging Marketing Services
Here are some great services for text message marketing:
- Textedly: Affordable, with capabilities for bulk campaigns and social media messaging.
- EZ Texting: Easy to use, with templates, tips, and industry-specific content.
- SlickText: Offers product consultants, client success teams, and onboarding help.
- Thryv: User-friendly with templates, messaging features, and keyword-driven campaigns.
- SimpleTexting: Feature-rich, with analytics for small businesses, customizable lists, and campaign tools.
By understanding and complying with SMS marketing regulations, businesses can leverage this powerful channel while avoiding costly pitfalls.
