SMS Marketing Compliance Guidelines

Introduction

SMS marketing is a powerful tool for businesses aiming to reach customers directly. Due to regulations in the United States, primarily under the Telephone Consumer Protection Act (TCPA) and Cellular Telecommunications Industry Association (CTIA) guidelines, businesses must ensure compliance to avoid penalties and maintain consumer trust. 

Legal Framework: TCPA Requirements

The TCPA mandates that businesses must obtain Prior Express Written Consent (PEWC) before sending any promotional SMS messages. Consent must be explicit, documented, and clearly provided by the consumer.

Key TCPA Compliance Points:

• Consent: Obtain explicit, documented consent (online forms, paper forms, keyword texting).

• Disclosure: Send an initial message after consent, clearly stating:

  • Business identity
  • Purpose of messages
  • Frequency of messages
  • Message/data rate disclaimer
  • Opt-out instructions (keywords: STOP, END, CANCEL, UNSUBSCRIBE, QUIT)
  • Terms and conditions link

• Opt-Out Requirement: Provide clear opt-out instructions in the first marketing message after consent is secured. Respond promptly (within 10 business days) to opt-out requests and send confirmation of opt-out.

Industry Standards: CTIA Best Practices

The CTIA guidelines, though not legally enforceable, strongly influence industry practices and can impact message delivery success through carrier compliance.

CTIA Recommendations:

• Obtain clear and explicit consent.
• Consider using a double opt-in method.
• Include clear opt-out instructions in the initial confirmation message and regularly (at least monthly) thereafter.
• Common opt-out keywords: STOP, END, CANCEL, UNSUBSCRIBE, QUIT.

Legal Requirement for Opt-Out in First SMS

• The TCPA does not explicitly mandate an opt-out message in the initial SMS message that solely seeks consent (this practice is discouraged).
• However, once consent is given, the very first marketing or confirmation SMS must include opt-out instructions.
• Including clear opt-out instructions at the start aligns with both TCPA and CTIA standards, ensuring compliance and consumer trust.

Best Practices for Initial SMS Contact

• Do not send unsolicited texts to request consent.
• Clearly communicate the purpose of messages and opt-out instructions in your confirmation message:
  • Example: “Welcome! You'll now receive updates and offers. Reply STOP to cancel. Msg/data rates apply.”
• Promptly honor opt-out requests.
• Respect quiet hours (8:00 AM – 9:00 PM local time).
• Regularly remind subscribers of opt-out options.

Consequences of Non-Compliance

• TCPA violations carry fines of $500 - $1500 per message.
• Non-compliance with CTIA guidelines can result in messaging restrictions by carriers.
• Negative impact on brand reputation and customer trust.

Summary of SMS Compliance Requirements

Examples of Compliant SMS Messages

• Post-Keyword Opt-in: “Welcome! Get exclusive deals. Approx. 4 msgs/month. Msg/data rates apply. Reply STOP to cancel.”
• Post-Web Form Opt-in: “Thanks for signing up! Frequency varies. Msg/data rates apply. Text STOP to unsubscribe. Privacy: [link].”
• Confirmation after Verbal Opt-in: “You've verbally subscribed to marketing tips. Reply YES to confirm, STOP to opt out. Msg/data rates apply.”

Opt-Out Keywords Summary

• STOP, END, CANCEL, UNSUBSCRIBE, QUIT, STOPALL, OPT-OUT, NO, ENDALL

By adhering to these guidelines, businesses can confidently engage customers via SMS while ensuring regulatory compliance and consumer satisfaction.