A complete guide to SMS regulations

Text messaging, including SMS, MMS, RCS, and iMessage among others, has become a powerful marketing tool for businesses. However, SMS regulations govern how businesses can use text messages for marketing to protect consumers from spam and privacy violations. Companies must comply with the FCC’s requirements–mainly TCPA SMS regulations– and the FTC’s SMS regulations, to avoid legal penalties and remain aligned with ethical marketing practices.

Understanding these regulations is crucial for marketers looking to maintain compliance and build trust with their audience. This guide will cover the key SMS marketing regulations, best practices for compliance, and how tools like TrustedForm can help businesses stay within legal boundaries.

Key SMS marketing regulations

TCPA SMS regulations

The Telephone Consumer Protection Act (TCPA) is the primary law governing SMS marketing in the U.S. Enacted in 1991, the TCPA was designed to curb unsolicited telemarketing calls and texts, better protecting customers from spam and privacy violations. Over the years, the law has been updated to address emerging technologies, including automated messaging systems and robocalls.

The TCPA SMS regulations require businesses to:

  • Obtain prior express written consent from consumers before sending marketing text messages. This consent must be clear, and conspicuous, and include an acknowledgment that the consumer agrees to receive automated, auto-dialed, or prerecorded marketing messages.
  • Provide an opt-out mechanism in marketing message campaigns. This can be a simple instruction such as “Reply STOP to unsubscribe” that allows consumers to withdraw their consent easily. Be sure to align with updated revocation requirements taking effect in April 2025.
  • Maintain an internal Do Not Call (DNC) list that aligns with both state and federal DNC lists.
  • Avoid sending marketing texts outside of appropriate hours (before 8 a.m. or after 9 p.m. in the recipient’s local time) to prevent intrusive and unwanted messaging.
  • Be mindful of frequency limitations to avoid overwhelming recipients with excessive marketing messages, which could be perceived as spam.

Violating TCPA regulations can result in hefty fines, with penalties ranging from $500 to $1,500 per violation, depending on whether the violation is deemed negligent or willful. In recent years, class-action lawsuits related to TCPA violations have resulted in multimillion-dollar settlements, making compliance a critical priority for businesses engaging in SMS marketing.

FCC SMS regulations

The Federal Communications Commission (FCC) plays a crucial role in overseeing TCPA enforcement and regulating marketing texts. As the primary regulator for SMS marketing, the FCC oversees businesses’s adherence to federal guidelines that protect consumers from unsolicited and unwanted communications.

FCC SMS opt-in regulations have become increasingly more strict over the years helping protect consumers from unwanted spam or robocalls. Furthermore, FCC SMS regulations prevent using autodialers to send text messages for marketing messages without first obtaining express written consent.

In addition to the TCPA requirements outlined in the section above, the FCC is always looking to evolve as it monitors and regulates emerging marketing communication technologies. However, the FCC is not the only government entity with which your business needs to align..

FTC SMS regulations

Federal Trade Commission (FTC) does not directly regulate SMS marketing but enforces consumer protection laws that apply to text-based communications. The FTC SMS regulations focus on preventing deceptive, misleading, and unfair marketing practices to ensure consumers are not misled or exploited.

Key areas of FTC SMS regulation include:

  • Preventing false advertising and misleading promotions. Businesses must maintain that all SMS marketing messages accurately represent their products, services, and offers, avoiding exaggerated claims or hidden fees.
  • Protecting consumer data collected through SMS marketing. Businesses must safeguard personal information obtained through SMS interactions and comply with data privacy laws to prevent unauthorized sharing or misuse.
  • Cracking down on fraudulent or scam text messages. The FTC aggressively pursues businesses and individuals who engage in fraudulent SMS schemes, including phishing attempts, fake giveaways, and deceptive sales tactics.

While the FCC primarily regulates SMS compliance, the FTC collaborates with the FCC in cases where businesses engage in fraudulent or deceptive SMS marketing. Marketers should ensure their campaigns are transparent, truthful, and compliant with consumer privacy laws to avoid regulatory scrutiny.

Best practices for SMS compliance

To bolster compliance with SMS regulations, businesses should follow these best practices:

1. Obtain proper consent

  • Use a clear and conspicuous opt-in mechanism.
  • Document and store proof of consent from consumers who actively agree to receive marketing texts.
  • Maintain accessible records of consent for legal protection.

2. Provide an easy opt-out

  • Every message should include a simple opt-out option (e.g., “Reply STOP to unsubscribe”).
  • Honor opt-out requests promptly.

3. Respect consumer privacy

  • Do not sell or share consumer phone numbers without compliant notice and consent language and full disclosures of data selling or sharing practices in privacy policy language.
  • Secure and protect consumer data collected via SMS campaigns.

4. Follow message frequency and timing rules

  • Avoid sending too many messages that could be considered spam.
  • Send texts only during legally permitted hours.

5. Use TrustedForm for bolstered compliance

TrustedForm is the ultimate compliance solution that helps businesses:

  • Document and store proof of consent.
  • Maintain compliance with FCC and FTC regulations.
  • Mitigate the risk of TCPA lawsuits.

Final thoughts

Staying compliant with SMS marketing regulations is more than just a legal requirement—it’s a fundamental aspect of building customer trust and maintaining a positive brand reputation. Non-compliance can lead to severe financial penalties, reputational damage, and loss of consumer confidence, making it imperative for businesses to follow best practices and remain proactive in monitoring regulatory updates.

By adhering to the FCC’s SMS regulations, mainly the TCPA, and the FTC’s SMS regulations, businesses can create effective, ethical, and legally compliant SMS campaigns that drive engagement and customer loyalty. Leveraging tools like TrustedForm helps bolster proof of consent and compliance verification, providing businesses with the protection they need against legal risks.

Don’t leave compliance to chance—stay informed, implement best practices, and use the right tools to safeguard your SMS marketing strategy.

Stay compliant. Stay trusted. Get TrustedForm today.

Tagged:

,

Written by Andrew Bailey

Andrew Bailey is an experienced digital marketer and industry strategist for ActiveProspect with over 10 years of content-creation experience.

Stay in the loop! Subscribe to the recAP email list to get our latest updates and insights.

ActiveProspect needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.