Must Know SMS Marketing Laws in the US before Sending any Text

July 8, 2024

SMS marketing is a powerful tool for reaching customers directly, but it has strict regulations designed to protect consumers from unwanted messages.

Understanding and complying with these laws is essential to avoid legal repercussions and maintain customer trust.

Supercharged SMS guide covers the key SMS marketing laws in the US and provides best practices for compliance.

List of SMS Marketing Laws in the US

Before diving into specific laws, it’s important to understand the general legal landscape of SMS marketing in the US.

These laws aim to prevent spam, protect consumer privacy, and ensure that businesses obtain proper consent before sending marketing messages.

1. The Telephone Consumer Protection Act (TCPA)

The TCPA is the primary federal law governing SMS marketing in the United States. Enacted in 1991, it sets strict guidelines on how businesses can communicate with consumers via SMS.

The law is designed to protect consumers from unwanted calls and texts, making it one of the most critical regulations for marketers to understand and comply with.

How to Get Consent?

Explicit Consent: Under the TCPA, businesses must obtain explicit written consent from consumers before sending any marketing messages.

This means the consumer must clearly agree to receive SMS messages, typically by checking a box on a form or replying to an SMS with a keyword.

Written consent can also be obtained through electronic forms, where a consumer inputs their phone number and explicitly agrees to receive messages.

Opt-In Mechanisms: Use clear opt-in mechanisms that make it easy for consumers to give their consent.

This could be through an online form, a text-to-join campaign, or a verbal agreement captured electronically. Ensure that the language used to obtain consent is straightforward and unambiguous.

Documentation: Keep detailed records of consent, including the date, time, and method through which it was obtained.

This documentation can protect your business in case of any legal disputes. CRM systems or dedicated consent management platforms can be used to store and manage this information effectively.

Read More: Bulk SMS Marketing Strategy

TCPA Expectations

Message Content: Ensure that your messages include clear identification of the sender and an easy way for recipients to opt out of future messages.

This typically involves including a phrase like “Reply STOP to unsubscribe.” The message should also provide contact information or a link to the company’s website.

Message Frequency: Inform consumers about the expected frequency of messages when they opt-in. Stick to the promised frequency to avoid complaints and potential legal issues.

Overloading consumers with too many messages can lead to higher opt-out rates and potential violations.

Time Restrictions: The TCPA restricts the timing of marketing messages. Messages can only be sent between 8 a.m. and 9 p.m. in the recipient’s local time zone.

Scheduling messages within these time frames helps ensure compliance and improves customer satisfaction.

2. The CAN-SPAM Act

Although originally designed for email marketing, the CAN-SPAM Act also applies to commercial SMS messages.

This law requires transparency in message content and gives recipients the right to stop receiving messages.

Clear Identification: Your messages must clearly identify that they are advertisements or promotional content. Misleading subject lines and false information are prohibited.

Transparency is key to building trust and avoiding legal issues.

Opt-Out Mechanism: Include a clear and conspicuous opt-out mechanism in every message. Make it easy for recipients to unsubscribe, and honor opt-out requests promptly.

The opt-out process should be straightforward and not require additional steps, such as logging into an account.

3. State-Specific Mini TCPA After 2021 Court Ruling

In addition to federal laws, some states have enacted their own regulations that mirror or expand upon the TCPA.

These laws can vary significantly from state to state, adding another layer of complexity for marketers.

I. California Consumer Privacy Act (CCPA)

Broad Applicability: The CCPA enhances privacy rights and consumer protection for residents of California.

While it primarily focuses on data privacy, it also affects how businesses collect and use personal information, including phone numbers for SMS marketing.

Consent and Content: Ensure that you have proper consent and that your messages include all required disclosures. Double-check state-specific requirements to ensure full compliance.

The CCPA requires businesses to inform consumers about their data collection practices and obtain explicit consent before sending marketing messages.

II. Protecting Children With COPPA

Children’s Online Privacy Protection Act (COPPA): If your SMS marketing efforts target or involve children under 13, you must comply with COPPA.

This law requires parental consent for the collection and use of personal information from children. It is designed to protect the privacy and safety of minors online.

Parental Consent: Obtain verifiable parental consent before collecting phone numbers or any personal information from children. Implement age verification mechanisms to ensure compliance.

COPPA also requires businesses to provide parents with the ability to review and delete their children’s information.

Read More: Improve Your SMS Marketing Campaigns Open Rate

Best Practices to Comply with These Laws

➡️ Obtain Clear Consent: Always obtain explicit consent from consumers before sending any marketing messages. Use clear opt-in mechanisms and keep detailed records of consent.

➡️ Provide Clear Opt-Out Options: Ensure that every message includes a clear and easy way for recipients to opt out of future messages. Honor opt-out requests promptly to avoid legal issues.

➡️ Maintain Transparency: Be transparent about the nature of your messages, including identifying them as advertisements and providing accurate sender information.

➡️ Respect Timing Restrictions: Adhere to the time restrictions set by the TCPA, sending messages only between 8 a.m. and 9 p.m. in the recipient’s local time zone.

➡️ Monitor State Laws: Stay informed about state-specific regulations that may affect your SMS marketing campaigns. Adjust your practices to comply with both federal and state laws.

Read More: Best SMS Marketing Examples

Common Violations to Avoid

➡️ Sending Without Consent: One of the most common violations is sending marketing messages without obtaining proper consent. Always ensure you have explicit consent before sending any messages.

➡️ Failing to Provide Opt-Out Mechanisms: Neglecting to include a clear opt-out mechanism in your messages can lead to legal trouble. Make it easy for recipients to unsubscribe.

➡️ Ignoring Opt-Out Requests: Failing to honor opt-out requests promptly is a serious violation. Implement systems to process and confirm opt-out requests quickly.

➡️ Misleading Content: Avoid misleading or false information in your messages. Ensure that all content is truthful and clearly identifies the nature of the message.

➡️ Sending at Restricted Times: Adhering to the time restrictions set by the TCPA is crucial. Avoid sending messages outside the allowed hours of 8 a.m. to 9 p.m. in the recipient’s local time zone.