SMS Compliance in the U.S [Complete Guide]

SMS marketing can be a powerful tool for your business, but failing to follow compliance rules can put you at serious risk.

If you send text messages without proper consent or fail to meet legal requirements, you could face fines, customer complaints, and even lawsuits.

Regulations like the TCPA (Telephone Consumer Protection Act) and SMS compliance guidelines from the FCC and CTIA are designed to protect consumers. As a business, it’s your responsibility to make sure every message you send follows the law.

Compliance is key to building trust with your customers. When you respect their privacy and send messages they’ve agreed to receive, they start to trust and feel more comfortable with your brand.

Trust is essential, especially now that people are very cautious about how their personal information is used.

In this article, let’s look at how you can integrate these rules into your marketing strategy, turning them into an opportunity to engage and retain your customers.

What Is SMS Compliance?

SMS compliance makes sure marketing text messages sent by businesses adhere to legal and ethical guidelines, especially for marketing purposes.

These guidelines protect individuals from unwanted messages and clarify the sender’s identity and message purpose. 

The TCPA in the U.S. is one of the strictest regulations governing business texting. Under this law, sending promotional text messages without proper consent can result in monetary fines.

Not all texts require the same level of consent. If you’re sending a marketing or sales-related message, you need prior express written consent.

However, informational messages don’t require written consent but still need implied permission.

Beyond legal risks, non-compliant messaging can frustrate customers, which leads them to opt out of requests or even file complaints. If they feel their privacy has been violated, they’re more likely to block your number, leave a negative review, or take legal action.

Why SMS Compliance Matters for Businesses

Whether you’re a small business or a large corporation, SMS compliance should be a priority. Here are key reasons why it’s important:

Build Trust With Your Audience

When you only send messages to those who have opted in, it shows respect for individual choices and privacy. Clear communication about who is sending the message and why helps customers feel secure and confident that they are not being misled. 

A simple way for customers to opt-out shows value to their preferences and satisfaction. Also, prompt and personalized responses to replies show attentiveness and build a deeper connection. 

Avoid Legal Issues

Legal frameworks provide clear guidelines about consent, privacy, and consumer rights, especially as it relates to promotional-type messages. Customer service or transactional-type messages do not need to meet these strict requirements.

TCPA fines can be quite steep, ranging from $500 to as much as $1,500 for each willful violation. A willful violation means that a business knew what they were doing was against the rules but chose to proceed anyway.

Beyond the financial implications, non-compliance can cause reputational damage, which leads to lost customer trust and negatively impacts business relationships.

Protect Brand Reputation

When a company consistently follows SMS laws, it tells customers and the wider market that it values honesty and customer rights. This can lead to stronger customer loyalty, as people are more likely to stick with and recommend companies they trust. 

Also, having a good reputation for compliance can make your business more attractive to potential partners and investors who are looking for ethical companies.

Following reputational damage, you may also see a decline in your customer base. Customers who are irritated by non-compliant communication practices are more likely to seek services or products from your competitors.

What Are TCPA and CTIA Guidelines?

Cold texting, or sending unsolicited marketing-type text messages to customers who haven’t agreed to receive them, is illegal.

There are two sets of regulations that govern the use of telecommunications, including text messaging. Here’s a quick breakdown of each:

Telephone Consumer Protection Act (TCPA)

TCPA was enacted in 1991 by the Federal Communications Commission (FCC) in the United States to address a growing number of consumer complaints about telemarketing phone calls.

If you send promotional text messages, you must obtain prior express written consent from recipients before texting them. This consent must be clear and explicit, so customers must know what they are signing up for.

If you’re sending informational messages, such as appointment reminders, delivery updates, or fraud alerts, these don’t require written consent but must still be sent only to customers who have a business relationship with you.

However, if you include any marketing content in these messages, they become promotional text messages and require explicit consent.

TCPA also requires that you provide an easy way for recipients to opt-out. If a customer replies with “STOP,” you must immediately remove them from your list.

Also, you cannot send marketing texts before 8 AM or after 9 PM in the recipient’s local time. If you’re running nationwide campaigns, be mindful of time zones to avoid violating this rule.

Cellular Telecommunications Industry Association (CTIA)

The CTIA is a trade association representing the wireless communications industry in the U.S. Their guidelines extend beyond basic compliance to offer marketers detailed instructions for better customer experience in SMS marketing.

While violating CTIA guidelines won’t lead to legal action, non-compliance can result in mobile carriers blocking messages.

CTIA requires that you have a clear opt-in process. Customers should know what they are agreeing to when they sign up for your SMS messages. Once they opt-in, you should send a confirmation message outlining the following:

• Your business name
• The type of messages they will receive
• How often they can expect to receive messages
• How they can opt-out

Another requirement is message frequency transparency. If you promise to send “one message per week,” you cannot exceed that limit. If you start texting customers more often than expected, they may complain or block your messages.

CTIA also prohibits misleading content. You cannot trick customers into opting in, use deceptive wording, or fail to identify yourself in messages. Your texts should always be honest, clear, and easy to understand.

Lastly, you must support standard opt-out keywords like STOP, UNSUBSCRIBE, CANCEL, and END. When a customer opts out, you must remove them immediately and send a confirmation message to acknowledge their request.

Common Pitfalls to Avoid for SMS Compliance

SMS compliance is essential for businesses to maintain healthy relationships with customers and avoid legal issues. However, several common pitfalls can jeopardize compliance efforts.

As a business, you need to be aware of the most common mistakes companies make when sending text messages and how to avoid them.

Cart Abandonment Messages

Just because someone starts the checkout process or provides their phone number does not mean they have agreed to receive SMS marketing.

Cart abandonment reminders are effective, but if you send too many, you may drive customers away instead of encouraging them to complete their purchase. While some businesses send multiple messages within a short period, this can come across as intrusive or spammy.

Every promotional text message, including cart abandonment reminders, must include a clear way for customers to opt-out.

If a customer decides they no longer want to receive messages, they should be able to reply STOP and be removed from your SMS list immediately.

Lack of Opt-Out Clarity

If customers want to stop receiving messages, they should be able to do so easily and instantly. Some businesses make the mistake of requiring customers to visit a website or call customer support to opt-out.

Once a customer replies with an opt-out request, you are legally required to stop sending messages immediately.

Some businesses fail to process opt-outs right away, either due to manual errors or system delays. Even a single additional message after an opt-out can result in compliance violations.

Selling Age-Restricted Items

When sending SMS messages about products that have age restrictions (like alcohol or tobacco), it’s important to verify the recipients’ age before messaging.

You must implement a reliable age verification process at the point of opt-in to make sure all SMS communications are sent only to eligible individuals.

Just like with any SMS campaign, you must give recipients a clear way to opt out of receiving messages. However, with age-restricted products, there’s even greater scrutiny. If someone underage receives a message about a restricted product, they must be able to opt-out immediately.

Inadequate Consent Processes

Consent must be clear and unambiguous so recipients fully understand and agree to what they are signing up for. Other than ticking a generic checkbox, they should be informed about the types of marketing messages they will receive and how often.

How to Gather Consent for SMS Marketing

Effective SMS marketing starts with legally and ethically collecting consent from recipients. Below are detailed strategies to ensure that your process for gathering consent is compliant and clear to your customers:

Use Clear and Understandable Language

When asking for consent, you must use language free from legal jargon or marketing fluff. Clearly specify what the recipient is signing up for, including the type of messages they will receive (e.g., promotions, updates) and how frequently they will be contacted.

Incorporate an Opt-In Mechanism

It’s essential to provide a clear opt-in mechanism, such as a checkbox on a sign-up form that is unchecked by default. Users can choose to opt-in rather than being automatically enrolled. 

Prospects can also text a business to opt-in using words like “Join” or other keywords they may have seen in an ad or on social media. When a customer sends a business a text, it is clear that they are expecting a text response and, therefore, opting for text messaging.

They can also opt-in via a call center interaction, but they have to have agreed to opt in based on a script read to them by the agent. The company must also have a means of tracking that opt-in method.

Implement a Double Opt-In Strategy

A double opt-in process sends a confirmation message after the initial sign-up, asking the user to verify their consent to receive SMS messages. This might involve replying to the SMS with a specific keyword or clicking a link to confirm their subscription.

An extra step helps to ensure that the consent is deliberate and can reduce the chances of misunderstanding or accidental sign-up.

Maintain Accurate Consent Records

Keep detailed records of when and how each consent was obtained, including the date, time, and the exact form of consent. These records are important for compliance, especially if your practices are ever questioned by regulatory authorities or in case of disputes.

Compliance Checklist for SMS Campaigns

Ensuring your SMS campaigns are compliant with regulations protects your business from legal risks and maintains the trust of your audience. Here’s a checklist to guide you through setting up a compliant SMS marketing campaign:

Know the Types of SMS Messages

SMS messages can generally be categorized into three types, each serving different purposes within a campaign:

Transactional messages provide necessary information related to a user’s action or account, such as order confirmations, shipping updates, or appointment reminders. 

These messages should only be sent to customers who have completed a transaction or have an ongoing relationship with your business.

Conversational messages are two-way communications initiated by either the customer or the business, such as customer support queries, booking confirmations, or feedback requests.

Explicit consent should be obtained for sending non-transactional conversational messages if the business initiates them.

Promotional texts are used to promote sales, special offers, or events. They are designed to engage customers and motivate them to take action. 

You must obtain clear opt-in consent specifically for promotional messaging, as these require explicit permission under most regulations.

Obtain Permission

You must make the consent request clear and detail what messages the recipient is signing up for and how often they will receive them.

Opt-in mechanisms can include actions like texting a specific keyword to a shortcode, checking a box on a website form, or signing up in person at events or sales points. 

You can also implement a double opt-in process, where the subscriber confirms their consent through a follow-up message.

Personalize Your Messages

Addressing the recipient by name or referencing past purchases can make the message feel more relevant and less intrusive.

You can also tailor your messages based on the recipient’s previous interactions or purchases with your brand. For example, if a customer bought a particular type of product, you could send them information about related products or upcoming sales on similar items.

Also, refrain from using language that could be perceived as overly promotional or spammy. Phrases like “Act Now!” or “Limited Time Only!” can come across as pushy and may lead to higher opt-out rates.

Schedule Frequency of Messages

The best time to send SMS messages will depend on your audience and the nature of your message. Well-timed messages can feel like helpful reminders or timely offers, making the customer more likely to engage positively with your content.

For instance, transactional messages should be sent immediately after the relevant customer action, while promotional messages might perform best during late mornings or early evenings.

How often you send SMS messages can also impact customer perception and engagement rates. When you over-message a customer, it can lead to irritation and high opt-out rates, so it’s essential to find a balance. 

Consider segmenting your audience based on their preferences or engagement levels. Some customers may appreciate frequent updates, while others might prefer less frequent communication. 

Tailoring your message frequency to these preferences can help maintain satisfaction across different segments of your audience.

Respect Privacy

Limit the amount of personal information you collect to what is necessary for your campaign. Over-collecting data can make customers uneasy and increase the risk of data breaches.

Be clear and upfront with your customers about what data you are collecting, why you are collecting it, and how it will be used. For example, you might ask for someone’s birthday, but make it clear that it is so that you can let them know there is a birthday gift or promotion you want to offer. 

Include this information in your privacy policy and make sure it is easily accessible to your customers.

Provide Clear Opt-Out Instructions

Opt-out instructions should be prominently displayed in every SMS message. This means including a simple directive like “Reply STOP to unsubscribe” in a clear and easy-to-read format at the end of each message.

The opt-out process should be quick and require minimal effort from the recipient. Typically, a single keyword like STOP is sufficient. You should avoid complicated procedures that could discourage users from opting out if they wish.

Some advanced platforms like Textellent use AI to detect if the recipient has used non-standard language to opt-out, such as “ I had a bad experience with your company last time.” 

In that instance, the negative sentiment would be detected, and it would automatically put that customer on the “do no text” list and flag the message so that a staff member could review it.

Stay Compliant in SMS Marketing With Textellent

Keeping your SMS marketing compliant can be frustrating and risky. Fines, customer complaints, and blocked messages are all common problems businesses face when they don’t follow TCPA and CTIA regulations.

If you’re not sure whether your promotional text messages meet the rules, you could be putting your reputation and revenue at risk.

Worried about keeping up with SMS compliance? Let Textellent take the stress away.

Textellent offers valuable insights into why customers may opt out, giving you the data you need to optimize your engagement strategies. It merges with your CRM system to automate and tailor your communications for marketing, sales, and customer service.

Don’t let SMS compliance mistakes cost you money or customers. Textellent keeps your text marketing safe, simple, and effective! Sign up now for a free trial or request a demo consultation today!

FAQs About SMS Compliance

What is SMS compliance?

SMS compliance refers to the legal rules and industry guidelines that businesses must follow when sending text messages to customers. These rules ensure that businesses obtain proper consent, allow recipients to opt out easily, and send messages within approved timeframes.

Compliance is important to avoid fines, lawsuits, and message filtering by mobile carriers. In the U.S., SMS compliance is mainly governed by TCPA, FCC rules, and CTIA industry guidelines.

What are the SMS rules in the US?

You must get prior express written consent before sending promotional messages. Customers must have an easy way to opt-out, and messages can only be sent between 8 AM and 9 PM in the recipient’s time zone.

You also need to maintain records of consent and follow content guidelines to avoid misleading messages. Violating these rules can result in fines ranging from $500 to $1,500 per message.

What is the SMS compliance of the FCC?

The FCC enforces TCPA regulations, which set the legal requirements for business texting. You must obtain clear written consent for marketing messages, offer an opt-out option in every text, and avoid sending messages through auto-dialing systems without permission.