The Telephone Consumer Protection Act (TCPA) was designed to protect consumers from intrusive marketing calls, texts, and faxes, but for businesses, it’s a legal minefield. Violations can cost millions, tank your reputation, and invite waves of litigation.

This guide breaks down the real costs of TCPA settlements, from the average check amount to the ripple effects on your brand. If you’re in marketing, legal, or leadership and not 100% confident in your compliance, now’s the time to pay attention before a misstep turns into a multi-million-dollar mistake.

What is a TCPA settlement?

A TCPA settlement refers to the resolution of a lawsuit, either individually or through a class action, where a company accused of violating the TCPA agrees to pay monetary damages to consumers rather than continue litigation. These violations can include, but are not limited to:

Settlements usually occur when the company wants to avoid the unpredictable outcomes and high costs of going to court. But these payouts can be enormous, even for seemingly small infractions.

Average TCPA settlement amounts

The average TCPA settlement isn’t a fixed number—it swings widely depending on the size of the campaign, the nature of the violation, and whether it’s an individual claim or a class action. Some companies walk away with a five-figure hit. Others face settlements in the tens of millions.

Here’s a breakdown of notable cases and typical ranges:

Individual TCPA settlements

  • Typical range: $5,000 to $250,000+
  • Example: A New Jersey woman won a $229,500 verdict against a cable provider for unsolicited calls. Another case awarded her $571,000, which was later settled confidentially.

While individual cases might not make headlines, they still sting, especially if multiple plaintiffs follow.

TCPA class action settlements

  • Typical range: $5 million to $60+ million
  • Examples:
    • Keller Williams Realty settled for $40 million over unauthorized autodialed calls.
    • A satellite TV provider was hit with a $61 million verdict for DNC violations by a third-party vendor.

The scariest part? TCPA class action lawsuits are on the rise in 2025 and have doubled since 2024. What makes these class actions even more dangerous is that they’re often filed by professional plaintiffs and serial TCPA litigators who target businesses seen as vulnerable. 

The dollar amounts in major TCPA cases and settlements are often staggering, yet the financial penalties rarely translate into meaningful remedies for individuals allegedly harmed by a company’s calls or texts. In reality, these outreach efforts are often from responsible businesses engaging customers or leads. 

Related to privacy “harms”, law professors Danielle Keats Citron and Daniel Solove have provided insightful research and commentary stating, “Currently, much privacy litigation suffers from a misalignment of law enforcement goals and remedies. For example, existing methods of litigating privacy cases, such as class actions, often enrich lawyers but fail to achieve meaningful deterrence,” (or “harms” remedy).                  

The real costs of TCPA settlements

It’s easy to focus on the dollar amount of a TCPA settlement check, but the true cost runs much deeper. A single violation can trigger a chain reaction of financial, legal, and reputational fallout. Here’s a full breakdown of where the damage hits:

Direct financial penalties

  • $500 per violation is the statutory minimum
  • Up to $1,500 per violation for willful violations (known as “treble damages”)
  • Multiply that by thousands of calls, and the numbers explode fast.

One errant calling or SMS campaign targeting 10,000 people can mean $5–15 million in exposure.

Legal and compliance costs

Even if you fight and win, you’re still likely paying six to seven figures in legal fees. Lose, and you’ll also foot the bill for plaintiff attorney fees, court costs, and settlement administration. That’s before even addressing potential government fines or penalties from agencies like the FCC or FTC.

Brand reputation damage

  • Negative headlines erode consumer trust.
  • Industry peers and competitors question your credibility.
  • You become a target for serial TCPA litigators and professional plaintiffs.

Lost operational resources

TCPA lawsuits are time-consuming. Leadership, legal, marketing, and compliance teams are pulled away from growth and forced to focus on damage control. That’s time not spent on strategy, innovation, or customer engagement, and you’ll never get it back.

Best practices to avoid a costly TCPA settlement

The easiest way to survive a TCPA lawsuit is to never face one in the first place. Prevention isn’t just cheaper, it’s smarter, faster, and far less disruptive to your business.

With the TCPA’s strict liability rules and the growing wave of aggressive litigation, businesses can’t afford to cut corners on compliance. Below are five essential best practices every organization should follow to stay protected and minimize risk.

1. Obtain clear, documented consent

Your first and strongest line of defense is prior express written consent (PEWC) and it must be crystal clear.

  • Use plain, unambiguous language.
  • Disclose who will be contacting the consumer and why.
  • Ensure the consumer explicitly agrees to be contacted via phone, text, or prerecorded message.

If your consent process is vague or inconsistent, you’re opening the door to lawsuits.

2. Keep meticulous records

You can’t prove compliance without proof. Maintain organized, accessible records of:

  • Consent forms with clear ‘agreement’ action to notice disclosure language
  • Call and text logs
  • Opt-out timestamps and confirmations
  • Lead source details

If a claim is filed, your best defense will include detailed documentation. 

3. Scrub all leads against DNC lists

This step is non-negotiable. Always scrub your contact lists against:

  • The National DNC Registry
  • State-specific DNC lists
  • Your company’s internal DNC list
  • RND Reassigned Numbers Database service

Failing to do this is one of the fastest ways to end up in court and one of the easiest mistakes to avoid.

4. Train your sales & marketing teams

Compliance can’t be siloed. Make TCPA awareness part of your company culture by:

  • Including TCPA guidelines in employee onboarding
  • Holding regular compliance training
  • Requiring checklist reviews before launching campaigns

Remember, one uninformed employee can trigger a lawsuit for the entire company.

5. Implement TrustedForm 

Don’t rely on third-party assurances or outdated screenshots. Join thousands of businesses who use ActiveProspect’s TrustedForm to document proof of consent for every lead. With TrustedForm, businesses receive:

  • Mitigate TCPA risk by avoiding outreach to consumers without proper, documented consent on file
  • Verify that the consent certificate directly corresponds to the lead being purchased to confirm authenticity
  • Proceed with confidence, knowing the individual has provided consent to be contacted

With TrustedForm, you gain independent, real-time proof of consent that can help you when it matters most. Don’t leave your business exposed. Lock in compliance, build consumer trust, and move forward with confidence.

Final thoughts

The costs of a TCPA settlement go far beyond the headlines and dollar signs. They reach into every corner of your business—your finances, your brand reputation, your internal operations, and your future growth.

Whether it’s a single violation or a full-blown class action, the risks are real and rising. And thanks to the TCPA’s strict liability structure, intent doesn’t matter; only compliance does.

But here’s the good news: with the right tools and processes, these risks are avoidable.

Start by securing documented, prior express written consent. Keep airtight records. Scrub your lists. Train your teams. And above all, use technology like TrustedForm to help document and verify consent for TCPA compliance while providing unmatched visibility into the consumer experience. Because when it comes to TCPA compliance, it’s not about being lucky, it’s about being prepared.

Don’t wait for the lawsuit. Get started with TrustedForm today.

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DISCLAIMER: This page and all related links are provided for general informational and educational purposes only and are not legal advice. ActiveProspect does not warrant or guarantee this information will provide you with legal protection or compliance. Please consult with your legal counsel for legal and compliance advice. You are responsible for using any ActiveProspect Services in a legally compliant manner pursuant to ActiveProspect’s Terms of Service. Any quotes contained herein belong to the person(s) quoted and do not necessarily represent the views and/or opinions of ActiveProspect.

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