Understanding Business SMS Compliance

In our digital world, businesses often turn to SMS (short message service) as a direct and effective way to communicate with customers. From promotional offers to important updates, SMS provides a unique channel to engage audiences instantly. However, with this power comes great responsibility—particularly when it comes to compliance with laws and regulations governing SMS marketing and messaging. Business SMS is handled far differently than the personal SMS we are used to sending and receiving with our friends and family.

So, how can your business ensure that it stays SMS compliant? Let’s take a closer look at the key regulations you need to be aware of and the best practices you should implement to keep your business on the right side of the law.

1. Know the Key Regulations Governing SMS Marketing

Business SMS in the United States is heavily regulated, with changes and new rules being implemented almost daily. Let’s take a look at some of the most prominent rules & regulations:

• TCPA (Telephone Consumer Protection Act): This law regulates all types of automated communication, including text messages. It requires businesses to obtain express written consent from consumers before sending marketing messages. Violations can lead to substantial fines and/or suspension of SMS service.
• CTIA (Cellular Telecommunications Industry Association) Guidelines: The CTIA is a trade organization that sets industry standards for mobile marketing practices. It provides guidelines on how businesses should use SMS messaging, including obtaining consent, providing opt-out options, and ensuring message transparency.
• CAN-SPAM Act: While this law is primarily about email marketing, it also affects SMS messaging when it involves commercial content. You must include clear opt-out instructions in every message and guarantee that messages are not misleading or deceptive.
• GDPR (General Data Protection Regulation): For businesses that operate in or engage with customers in the EU, GDPR creates strict rules around data privacy and consent. This includes how businesses collect, store, and use phone numbers for SMS marketing.

2. Obtain Clear and Express Consent

Before sending any marketing messages via SMS, businesses must obtain clear and express consent from the recipient. This means that:

• Opt-in: Customers must take a specific action to opt-in to receiving SMS communications. This could involve texting a keyword to a shortcode, scanning a QR code, signing up on a website, or agreeing during a purchase process. Simply adding someone to an SMS list without their consent is a violation of the law. Regardless of which opt-in method a business chooses to use, clear consent that the user is opting-in to receive SMS messages from your business is a must.
• Written Consent: It’s crucial to have written consent, especially under the TCPA, which requires businesses to provide a clear and concise disclosure that the consumer is agreeing to receive SMS messages.
• Double Opt-In: For added protection and to confirm that the customer truly wants to receive your messages, consider implementing a double opt-in process. After a customer initially subscribes, a confirmation message is sent from the business asking them to reply with a “Yes” to confirm their opt-in. This ensures that not only did they consent via signing up, but they are confirming their intent with a reply.

3. Include Clear Opt-Out Instructions

Every SMS message sent by your business should include a straightforward way for recipients to opt out of further messages. This is both a best practice and a legal requirement.

Opt-out must include words like STOP, CANCEL, or UNSUBSCRIBE. The most common method is to provide an option like “Reply STOP to unsubscribe” in every SMS you send. When a customer replies with “STOP” or similar keywords, you must immediately stop sending them marketing messages and send a final message stating that they have successfully opted-out and will no longer receive SMS from your business.

If you fail to honor opt-out requests promptly, your business could face fines, suspension of services, and damage to its reputation.

4. Be Transparent About the Frequency and Content of Messages

Be honest and upfront about the type and frequency of messages recipients can expect. Misleading customers about what they’re signing up for or blasting them with unsolicited messages can result in complaints, fines, and lawsuits.

• Frequency: Let customers know how often they can expect to hear from you. This helps manage expectations and reduces the likelihood of opt-outs. A message stating that message frequency is recurring and may vary is not only suggested, but also required.
• Content: Ensure that all messages are clear, concise, and directly related to what the customer signed up for. Content must match what your SMS campaign is registered for. Avoid sending irrelevant or intrusive content, or any content that is forbidden under current regulations.

5. Ensure Data Privacy and Security

When collecting phone numbers for SMS marketing, it’s important to handle customer data responsibly. Depending on your location and the location of your customers, you may need to comply with strict data privacy laws (e.g., GDPR, CCPA).

Some best practices include:

• Storing customer data securely and using encryption.
• Clearly informing customers about how their data will be used and stored.
• Providing a way for customers to update their preferences or opt-out if they no longer wish to participate in your SMS marketing campaigns.

Furthermore, an SMS-specific Privacy Policy and Terms & Conditions must be in place and available to your customers prior to sending them SMS messages. This will inform them on how their data will be used and protected, offering them clarity on what they can expect to see via your businesses SMS campaigns.

6. Monitor and Stay Up-to-Date with Regulations

SMS marketing regulations can and do change, and staying informed about these changes is critical to staying compliant. Subscribing to updates from industry bodies like the CTIA or consulting with legal advisors specializing in telecommunications law can help you keep your business in compliance.

You should also keep an eye on local and international laws if your business operates in multiple regions, as rules can vary widely.

7. Consider Using an SMS Compliance Platform

To make sure you’re always compliant, consider using an SMS compliance platform. These tools can help you manage opt-ins and opt-outs, track consent, and monitor message delivery in line with the legal requirements of your industry.

These platforms often have built-in safeguards that prevent you from making common mistakes, such as sending unsolicited messages or failing to honor opt-out requests.

8. Educate Your Team

Your team needs to be aware of the regulations and best practices surrounding SMS marketing. Whether it’s your marketing team sending out the messages or your customer service team handling opt-out requests, ensuring that everyone involved understands the compliance requirements is essential.

Training sessions and clear guidelines can help prevent accidental violations and ensure that your messaging strategies are ethical and legal.

Choose VoiceNEXT to Stay SMS Compliant

SMS marketing can be an incredibly effective way to engage with your customers and drive results for your business. However, to avoid potential legal issues, service disruption, or brand damage, it’s essential to stay compliant with SMS regulations. By obtaining proper consent, being transparent, offering easy opt-out options, and staying informed about legal requirements, your business can continue to use SMS as a powerful communication tool without falling out of compliance.

If you are ready to get started with SMS for your business, contact VoiceNEXT today. We will help you get setup, ensure you’re compliant with all regulatory requirements, and keep you abreast of any changes to SMS rules and regulations.

Staying SMS compliant isn’t just about avoiding fines—it’s about building trust with your customers and ensuring that your messaging practices are respectful and responsible.