Text marketing, also known as SMS marketing, is governed by several regulations set by the Federal Communications Commission (FCC) in the United States. These regulations are designed to protect consumers from unwanted spam and ensure that businesses use text messaging responsibly and ethically. Understanding these regulations is crucial for any business planning to engage in text marketing. Here's a detailed overview of the key aspects of FCC regulations around text marketing:
Telephone Consumer Protection Act (TCPA)
Overview: The TCPA was enacted in 1991 and is the primary law governing text marketing. It restricts telemarketing calls and the use of automatic telephone dialing systems.
Consent: Under the TCPA, businesses must obtain express written consent from consumers before sending them marketing texts. This consent cannot be a condition of purchase.
Revocation of Consent: Consumers have the right to revoke their consent at any time, and businesses must honor these requests promptly.
CAN-SPAM Act
Extension to Text Messages: Originally designed for email, the CAN-SPAM Act's principles also apply to text marketing.
Content Requirements: Messages must clearly identify the sender, include a valid physical postal address, and provide an easy way to opt-out of future messages.
Penalties: Violations of the CAN-SPAM Act can result in significant fines.
Wireless Carrier and Industry Guidelines around Text Marketing
Overview
Wireless carriers and industry organizations play a significant role in shaping the landscape of text marketing, often imposing guidelines that go beyond the legal requirements set by the FCC.
Carrier Restrictions
Individual Policies: Each carrier, like Verizon, AT&T, T-Mobile, etc., may have their own set of rules and technical requirements for using their network for sending marketing texts.
Spam Monitoring: Carriers actively monitor for spam and may block messages or penalize senders who violate their guidelines.
Quality Standards: Carriers enforce standards to ensure message quality and prevent network abuse. This might include limits on message length, sending speed, and the format of messages.
July 2023 Update: All Major carriers now require companies using a 10-digit phone number for SMS and MMS messaging to U.S. consumers to register to an approved campaign under their brand effective July 5, 2023. This registration process takes anywhere from 2-4 weeks, and requires details on your business's operations, ownership, and type.
August 2023 Update: 10 DLC Registration: Effective September 1, 2023, all U.S.-bound messages sent via unregistered 10DLC (10-Digit Phone Number) numbers will be blocked. Toll-free numbers do not require a paid 10DLC registration, however, to ensure deliverability toll-free numbers should still register and verify their ownership with services like 411. To get started with 10DLC Registration your business will need the following: - Organization Details DBA or Brand Name - Organizaion Type/Industry - Organization Address - Primary Contact for the Business - Message Details: Information on the types of messages you plan to send including sample messages that you'll send. - Consent Details: Indicator/Proof of how people gave consent to recieve messages from the organization. - Posted SMS Terms of Service and Privacy Policy on your business's website or social media pages.
Industry Standards
CTIA Guidelines: The CTIA, a trade association representing the wireless communications industry, provides detailed guidelines. These include best practices for user consent, message content, opt-out mechanisms, and more.
Self-Regulation: The industry often engages in self-regulation, promoting ethical practices and setting standards that all players are encouraged to follow.
Updates and Revisions: These guidelines are frequently updated to keep pace with technological advancements and changes in consumer behavior.
March 2023 Update: [FROM THE FCC] On March 16, 2023 the FCC adopted its first regulations specifically targeting the increasing problem of scam text messages sent to consumers. The new rules will require mobile service providers to block certain robotext messages that are highly likely to be illegal. The Report and Order adopted today [March 16, 2023] requires blocking of text messages that appear to come from phone numbers that are unlikely to transmite text messages. This includes invalid, unallocated, or unused numbers. It also includes numbers that the subscriber to the number has self-identified as never sending text messages, and numbers that government agencies and other well-known entities identify as not used for texting. A second rule will require each mobile wireless provider to establish a point of contact for text senders, or have providers require their aggregator partners or blocking contractors to establish such a point of contact, which senders can use to inquire about blocked texts. Read the full Press Release - here
Opt-In and Opt-Out Mechanisms
Opt-In Procedures: Businesses must provide a clear and conspicuous mechanism for consumers to opt-in to receive text messages.
Opt-Out Compliance: An easy and immediate opt-out mechanism must be included in every marketing message. Commonly, this is done through phrases like "Text STOP to unsubscribe."
Frequency and Content of Messages
Disclosure of Frequency: Businesses should inform consumers about the frequency of text messages they can expect to receive.
Content Limitations: Messages should be relevant to the consent given and should not contain prohibited content (e.g., adult content in a non-age-restricted context).
Record Keeping
Documentation of Consent: Businesses should keep records of consumer consents and opt-outs to demonstrate compliance with FCC regulations.
Privacy Considerations
Data Protection: Businesses must protect the personal data collected through text marketing and adhere to privacy laws like the General Data Protection Regulation (GDPR) for European consumers.
Penalties for Non-Compliance
Legal Consequences: Non-compliance with FCC regulations can lead to lawsuits, hefty fines, and damage to a business’s reputation.
Best Practices for Compliance
Regular Training: Ensure staff are trained and updated on the latest regulations and best practices.
Auditing and Monitoring: Regularly audit marketing practices and monitor for compliance.
Conclusion
Navigating FCC regulations in text marketing requires a thorough understanding of legal requirements and a commitment to ethical marketing practices. Businesses must prioritize consumer rights and preferences while leveraging the power of SMS as a marketing tool. Non-compliance can have significant legal and financial repercussions, making it crucial for businesses to stay informed and compliant.