Avoiding TCPA violations is essential for businesses using SMS marketing. Non-compliance can lead to fines ranging from $500 to $1,500 per message, lawsuits, and reputational damage. The Telephone Consumer Protection Act (TCPA) regulates text communications to protect consumer privacy. Here’s a quick breakdown of the most common violations and how to prevent them:
- Sending Texts Without Consent: Always secure explicit, written permission before sending marketing messages.
- Missing Opt-Out Options: Every text must allow recipients to opt out easily (e.g., reply "STOP").
- Contacting Numbers on the DNC Registry: Regularly scrub contact lists to avoid texting numbers on the National Do Not Call Registry.
- Using Autodialers Without Permission: Automated systems require explicit consent from recipients.
- Ignoring Reassigned Numbers: Use tools like the FCC’s Reassigned Numbers Database to avoid contacting individuals who haven’t opted in.
Key Takeaway: TCPA compliance protects businesses from financial penalties and legal risks while maintaining consumer trust. Use proper consent protocols, offer clear opt-out options, and keep contact lists updated to stay compliant.
9 Common TCPA Violations #tcpacompliance #tcpa #telemarketing
5 Most Common TCPA Violations in Text Filtering
Here are five frequent TCPA violations in text filtering that businesses should be aware of to avoid hefty penalties. The Federal Trade Commission reports receiving around 250,000 complaints about TCPA violations every month. These numbers highlight the importance of adhering to TCPA guidelines.
Sending Texts Without Proper Consent
One of the most common TCPA violations is sending marketing texts without securing prior express written consent from recipients. It’s a mistake to assume that an existing relationship automatically grants permission to send promotional messages.
For example, using phone numbers collected for service updates in marketing campaigns without explicit consent is a violation. Back in 2014, Capital One faced a class action lawsuit and ended up paying $75.5 million in penalties for using automated dialers without proper consent. Similarly, Domino’s Pizza settled for nearly $10 million in 2013 for sending promotional texts without the required permission.
"A TCPA violation is the term for when a business is found to have broken the rules of TCPA in some way – such as by calling a number unsolicited and using automated marketing messages or using a robodialer to send thousands of pre-recorded messages." – Rich Kahn, Anura CEO
Another case involved MedMen, which sent unsolicited texts and ended up paying over $5 million in damages. TCPA penalties can range from $500 to $1,500 per message, depending on whether the violation is considered willful.
Missing Opt-Out Options
Every text sent must include a clear and easy way for recipients to opt out. The TCPA mandates that opt-out requests be processed within 10 business days. Ignoring this can result in fines of $500 to $1,500 per text. Businesses are also required to honor common opt-out keywords like "STOP", "UNSUBSCRIBE", "CANCEL", "QUIT", "END," and "REVOKE" without demanding specific formats.
Gopuff faced accusations of continuing to send messages to consumers even after they attempted to opt out. This kind of violation can be particularly damaging, as it suggests a deliberate disregard for consumer preferences rather than an isolated mistake.
Texting Numbers on the DNC Registry
Reaching out to numbers listed on the National Do Not Call Registry without proper consent is another serious TCPA breach. This often happens when businesses fail to manage their contact lists or don’t regularly cross-check against the registry. The fines for this violation can reach up to $50,120 per illegal call.
A high-profile example is Dish Network, which in 2017 faced penalties totaling $341 million for knowingly contacting numbers on the Do Not Call Registry. Even if consent was initially obtained, businesses must keep accurate records and frequently update their lists to ensure compliance.
Using Autodialers Without Permission
Using automated dialing systems without written consent is a clear TCPA violation, regardless of the message’s purpose or content. For instance, Highmark Health Options paid $1.85 million in a class action lawsuit over automated telemarketing calls made without proper consent. This case underscores that even communications related to healthcare must strictly follow TCPA consent rules.
Ignoring Reassigned Phone Numbers
Reassigned phone numbers are a common pitfall for businesses. With nearly 100,000 phone numbers reassigned daily, companies risk contacting individuals who never gave consent. The TCPA holds businesses accountable for verifying the current ownership of a number, even if the original consent was valid. If a reassigned number is contacted without proper consent, it’s considered a violation – regardless of the company’s intent.
This issue is particularly challenging for businesses with large, outdated contact databases. Without regular updates, companies can inadvertently send messages to new users of reassigned numbers, leading to costly penalties.
Penalties for TCPA Violations
Understanding the penalties tied to TCPA violations is critical, especially given how easily businesses can find themselves in breach of these regulations. The financial consequences can be severe, often leaving businesses – large and small – facing significant losses. These penalties are not just punitive; they’re also meant to compensate consumers impacted by unlawful practices.
Fines and Financial Penalties
The fines for TCPA violations are steep, ranging from $500 to $1,500 per violation. Importantly, these penalties apply to each individual call or text. For instance, a campaign targeting 10,000 recipients could result in up to $5 million in fines.
Under the TRACED Act, intentional violations can lead to even harsher penalties, with fines climbing to $10,000 per call. Additionally, many states impose their own TCPA-style penalties, further increasing the financial stakes for violators.
High-profile cases illustrate just how costly non-compliance can be. In one of the most striking examples, the FCC issued its largest-ever TCPA penalty – $299,997,000 – against ten companies involved in an auto warranty robocall scheme. This demonstrates the FCC’s commitment to cracking down on violators.
Beyond fines, businesses also face the prospect of litigation and regulatory actions, which can compound the financial and reputational damage.
Lawsuits and Government Actions
TCPA violations not only result in fines but also open the door to lawsuits. Both individual and class action lawsuits are common, and regulatory bodies like the FCC and FTC actively enforce these rules. The TCPA operates as a strict liability statute, meaning violators can be penalized even without intent or fault.
The litigation risks are substantial. Class action lawsuits often result in settlements averaging millions of dollars. For example, a satellite TV provider in Colorado faced a $61 million verdict in a TCPA class action, followed by a $280 million penalty from the FTC.
Other notable settlements include:
- AT&T Mobility: $45 million
- US Coachways: $49.9 million
- National Grid: $38.5 million
The risks don’t stop there. Commercial liability insurers are increasingly seeking declaratory judgments to avoid covering TCPA-related claims. With the TCPA’s statute of limitations extending up to four years, businesses remain exposed to legal actions long after violations occur. This makes proactive compliance far less costly – and far less stressful – than dealing with the fallout of non-compliance.
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How to Avoid TCPA Violations
Given the hefty fines and legal challenges tied to TCPA violations, businesses must take deliberate steps to ensure their text messaging practices comply with the law. The goal is to build systems and processes that safeguard both your company and consumers from unwanted communications.
Get and Document Proper Consent
Express written consent is the cornerstone of TCPA compliance for SMS marketing. It’s not enough to assume consent – you need to obtain it explicitly, using clear language, and document everything thoroughly.
Your consent disclosures must include specific details: state that the recipient agrees to receive automated marketing texts from your named business, describe the types of messages they’ll receive (e.g., promotional, transactional, or informational), and mention that message and data rates may apply. You also need to provide an option for recipients to revoke consent at any time and clarify that consent is not tied to purchasing goods or services.
Here’s how compliant consent language might look:
"By checking this box, you agree to receive recurring automated promotional and personalized marketing text messages (e.g., cart reminders) from [Your Company] at the mobile number provided. Consent is not a condition of purchase. Msg & data rates may apply. Msg frequency varies. Reply HELP for help, STOP to cancel. View our Privacy Policy."
"By providing your number, you consent to receive automated service-related messages (e.g., appointment reminders) from [Your Company]. Msg & data rates may apply. Reply STOP to opt out."
It’s critical to keep detailed records, including the date and time consent was provided, the method used to collect it, the exact language shown during the consent process, and timestamped opt-in confirmations.
Consult your legal or compliance team to ensure your campaigns adhere to TCPA requirements. Regular check-ins with them can help you stay ahead of regulatory changes. The repercussions of inadequate consent practices can be severe. For example, Designer Shoe Warehouse (DSW) faced a $4.42 million lawsuit in March 2025 for sending unsolicited marketing texts.
Once consent is secured, make sure every message includes a clear way for recipients to opt out.
Include Working Opt-Out Options
Providing a reliable opt-out mechanism is just as important as obtaining consent. Every message you send must include a functional opt-out option.
The standard practice is to include “Reply STOP to opt out” in every text. However, your systems should also recognize other common opt-out keywords like QUIT, END, or UNSUBSCRIBE. Opt-out requests must be processed immediately, and no later than 10 business days. Once someone opts out, you cannot send them any further promotional messages.
Automate the suppression of opted-out numbers from future campaigns and ensure this system works across all communication channels. Many businesses use messaging platforms with built-in compliance tools to handle opt-out keywords and maintain suppression lists.
For example, in March 2025, Victoria Beckham Beauty showcased best practices by including clear unsubscribe instructions in their SMS campaigns. When users replied "STOP", they received immediate confirmation and instructions for resubscribing if they chose to. Similarly, Ulta Beauty included opt-out instructions in every message they sent.
Train your team to handle verbal opt-out requests appropriately and document these interactions. Use a centralized database to track all opt-out requests, and keep these records for at least five years. Making opt-outs simple and transparent boosts consumer trust, which is crucial since over 80% of customers say trust influences their purchasing decisions.
Check DNC Lists and Track Number Changes
Beyond consent and opt-out protocols, maintaining accurate contact lists is vital to avoid sending messages to reassigned or Do Not Call (DNC)-listed numbers. Reassigned numbers, in particular, pose a significant compliance risk. With 98 mobile numbers reassigned daily by wireless carriers and up to 20% of contact lists containing outdated numbers, regular list updates are non-negotiable.
Start by scrubbing your lists against the National Do Not Call Registry at least every 31 days. Integrate DNC data with your CRM for seamless updates and use automated tools to flag DNC-listed numbers in real time. Maintain internal opt-out lists across all systems.
To address reassigned numbers, use the FCC’s Reassigned Numbers Database (RND), which became available to paid subscribers on November 1, 2021. Query the RND no more than 30 days before contacting a number. Since phone numbers can be reassigned as quickly as 45 days after disconnection, these checks are crucial.
As Eric Allen, a partner at Allen, Mitchell & Allen PLLC, explains:
"Numerous TCPA lawsuits today involve the accidental calling [or texting] of wrong or reassigned numbers, creating a significant challenge in the industry. A brand may have consent from Person A and be calling [or texting] to reach Person A, but if Person B now owns the number and answers, Person B is allowed to sue you for your innocent mistake. Reassigned number and call/text verification scrubbing are absolutely essential to mitigating risk in this regulatory environment."
The case of Chennette v. Porch.com Inc. highlights these risks. GoSmith Inc., acquired by Porch.com in 2017, sent 7,527 texts to contractors’ cell phone numbers sourced from platforms like Yelp.com and YellowPages.com without proper verification, reaching over ten million contractors.
Leverage data validation tools to confirm contact information accuracy and conduct routine TCPA scrubs to identify recycled numbers. Document all RND queries and results, and train your team to properly log opt-out requests during conversations. Maintaining detailed records of your compliance efforts, including scrubbing practices and campaign reviews, can be critical if violations are alleged.
How Consumer Protection Services Can Help
When businesses break TCPA regulations, consumers have access to resources that can help them take action. Services like ReportTelemarketer.com assist individuals in identifying, documenting, and addressing violations, ensuring consumers can respond effectively to unwanted telemarketing practices.
Reporting and Investigating Violations
Platforms like ReportTelemarketer.com make it easier for consumers to report bothersome telemarketing calls and texts. To build a strong case, individuals should document key details such as the date, time, content of the message, caller ID, and any voicemails received. Where possible, consumers are also encouraged to gather additional information, like the sender’s name, the company they represent, and their contact details.
Once this information is collected, these services use specialized tools to trace the source of the violation. They also assist consumers in submitting complaints to regulatory agencies such as the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC). By organizing and presenting the necessary details, these services not only strengthen individual cases but also help identify larger patterns of misuse. This structured process promotes accountability and discourages future violations.
Legal Action and Consumer Support
Beyond reporting, consumer protection services provide valuable legal support, empowering individuals to hold violators accountable. Once a violation is properly documented, legal experts guide consumers through the process of seeking remedies under the TCPA, which grants individuals the right to take legal action. Services like ReportTelemarketer.com can assist with filing cease-and-desist letters or formal complaints against offenders.
Under the TCPA, violators can face penalties of up to $500 per infraction, or $1,500 if the violation is found to be intentional. TCPA settlements often reach significant amounts, with averages as high as $6.6 million. Many attorneys who handle these cases work on a contingency basis, meaning consumers don’t pay upfront fees unless their case results in a successful outcome.
Conclusion
Strategic compliance plays a critical role in protecting both businesses and their customers, as highlighted in the analysis above.
When it comes to text message filtering, adhering to the Telephone Consumer Protection Act (TCPA) is non-negotiable. Violations can lead to steep penalties ranging from $500 to $1,500 per message. High-profile cases like Dish Network’s $280 million fine and Papa John’s $16.5 million settlement demonstrate how costly non-compliance can be.
To stay compliant, businesses need to focus on avoiding the most common violations. This involves securing clear, documented consent from recipients, offering functional opt-out options, regularly checking Do Not Call (DNC) lists, and keeping detailed communication records. Automated tools for capturing consent and managing opt-outs can significantly reduce the risk of errors.
For consumers still dealing with unwanted messages, resources like ReportTelemarketer.com provide valuable assistance. They help individuals document violations, file complaints with regulatory agencies, and even pursue legal action when necessary.
Ignoring TCPA compliance is a risky gamble. Companies that prioritize consent, respect consumer preferences, and invest in strong compliance systems not only avoid hefty fines but also build trust with their audience. On the other hand, those that fail to comply face the high cost of neglecting consumer protection laws.
FAQs
What steps should businesses take to comply with TCPA rules for SMS marketing?
To stay aligned with TCPA rules in SMS marketing, businesses should take the following steps:
- Secure prior express written consent from recipients before sending any messages.
- Clearly communicate the terms of messaging, including its purpose and how often recipients can expect to hear from you.
- Include a simple and accessible opt-out option in every message you send.
- Restrict messages to the approved time frame of 8:00 AM to 9:00 PM local time for the recipient.
- Regularly audit and monitor your practices to ensure they comply with TCPA regulations.
These measures not only help businesses avoid legal pitfalls but also foster a sense of trust and transparency with their audience.
How can businesses ensure compliance with the Do Not Call Registry and avoid texting reassigned numbers?
To ensure compliance, businesses need to routinely update their contact lists by cross-referencing them with the National Do Not Call Registry at least once every 31 days. Another useful resource is the Reassigned Numbers Database, which helps identify and remove numbers that have been reassigned. This minimizes the chance of unintentional violations.
Keeping contact lists accurate and current helps companies avoid messaging people who have opted out or whose numbers have changed ownership. This not only aligns with TCPA regulations but also helps maintain consumer trust.
What legal and financial risks do businesses face for violating TCPA rules, and how can they avoid these penalties?
Businesses that break the Telephone Consumer Protection Act (TCPA) can face steep fines ranging from $500 to $1,500 for each violation. If the violations are found to be willful or repeated, the penalties can escalate, potentially leading to class-action lawsuits and hefty financial consequences.
To steer clear of these risks, businesses should focus on compliance. This means securing clear consumer consent, keeping accurate "Do Not Call" (DNC) lists, and routinely reviewing their communication practices. Establishing strong compliance policies and providing thorough staff training can further minimize the chance of violations. Taking a proactive approach is essential to safeguarding your business from costly legal repercussions.
