Avoiding TCPA violation fines: What lead generators and buyers need to know

The Telephone Consumer Protection Act (TCPA) is one of the most critical regulations for businesses involved in lead generation or buying leads. It governs how companies communicate with consumers, especially via phone calls and text messages. But what happens when businesses fail to comply? The answer: Potentially devastating TCPA violation fines.

This article explores TCPA violation fines, real-world cases, and actionable steps your business can take to avoid becoming the next cautionary tale.

What is the fine for a violation of the TCPA?

TCPA violations are costly. By law, businesses may be liable for:

• $500 per call or text that violates the TCPA
• $1,500 per call or text if the violation is found to be willful or knowing
  

TCPA violation fines are calculated per call or text message, which means the financial exposure can skyrocket quickly, especially for companies conducting high-volume outbound communications.

But here’s the nuance: TCPA cases aren’t always a straightforward equation of “X number of calls = Y fine.” Often, the total potential fine is calculated based on the volume of calls made during the relevant period. If it’s alleged that all those calls lacked proper consent, you could be looking at damages multiplied by hundreds of thousands—or even millions—of instances.

And it doesn’t stop there. Many U.S. states have their own state-specific TCPA-style laws. These can stack additional penalties on top of the federal fine per call, making non-compliance exponentially more expensive.

Once a company is sued, they typically face a choice: Go to court and defend themselves, which is time-consuming and costly, or settle for a lesser amount to avoid an unpredictable jury trial. Either way, the financial and reputational costs can be steep.

Real-world TCPA violations fines: Lessons from the headlines

1. Dish Network – $280 Million

In one of the largest TCPA cases ever, Dish Network was hit with a $280 million fine in 2017. The company was accused of making millions of telemarketing calls to people on the National Do Not Call Registry.

2. Caribbean Cruise Line – $76 Million Settlement

Caribbean Cruise Line faced a class-action lawsuit over robocalls sent without consent. The final settlement reached tens of millions of dollars, with individual claimants receiving between $200 and $300 per call.

3. ViSalus – $925 Million Jury Verdict

In 2019, a jury awarded this eye-popping amount after ViSalus was found to have made nearly 2 million robocalls without proper consent. While the verdict was later challenged and ultimately reduced, it served as a warning about how high TCPA violation fines per call can climb.

4. Capital One – $75.5 Million Settlement

Capital One settled a TCPA class-action case involving autodialed debt collection calls to customers’ cell phones. Though they did not admit wrongdoing, the financial implications were significant.

These examples underscore that TCPA violations are not a trivial matter. Companies—big and small—are held accountable, and settlements or jury verdicts can reach into the millions.

How to avoid TCPA violation fines

Avoiding TCPA violations comes down to one key principle: Document and respect consumer consent. Here are several best practices to help lead generators and buyers keep their marketing practices TCPA compliant:

1. Use TrustedForm to capture and document consent

TrustedForm provides independent proof of consent for every lead. It captures:

• The exact moment of the consent transaction
• The full webpage session replay
• The language shown to the consumer
• Timestamp, IP address, and other identifying details

This documentation is crucial if your company is ever accused of making calls or sending texts without proper consent. It forms the foundation of a defensible compliance position.

2. Validate consent before routing leads

Use LeadConduit to automate lead filtering. This tool can:

• Automatically reject non-compliant or suspicious leads
• Ensure consent metadata is passed to your CRM or dialer
• Reduce risk before any communication even happens

3. Don’t rely on generic opt-ins

Phrases like “Text SAVE to 54321” or pre-checked boxes are not sufficient. Your opt-in language should be clear, conspicuous, and specific about:

• Who is contacting the consumer
• The nature of the communication (calls, texts, etc.)
• That consent is not a condition of purchase

4. Understand time and channel restrictions

Certain jurisdictions restrict when and how you can contact leads. Stay aware of:

• Federal and state quiet hours (e.g., before 8am or after 9pm in the recipient’s time zone) and holidays
• Do Not Call lists (both federal and state-level)
• Reassigned Numbers Database to avoid contacting someone who now has a number previously given by another person

5. Consult legal counsel regularly

TCPA and related state laws are constantly evolving. Partner with your legal or compliance team to:

• Review campaign language and consent flows
• Stay ahead of legislative changes
• Develop internal escalation paths for potential compliance issues

Final thoughts: TCPA compliance is not optional

When it comes to lead generation or buying leads, TCPA compliance isn’t just about avoiding lawsuits—it’s about protecting your business, your reputation, and your growth potential.

So, what is the fine for a violation of the TCPA? Up to $1,500 per call, multiplied by every instance of non-compliant outreach. But as the ViSalus case shows, those calls add up—and so do the risks.

Investing in tools like TrustedForm and LeadConduit doesn’t just help with compliance. It allows you to confidently scale your outreach efforts, knowing your business is built on a foundation of transparent, consent-based marketing.

In the world of TCPA, prevention is always less expensive than the cure. If you’d like to learn how ActiveProspect can help you stay on the right side of compliance, schedule a free demo now!