TCPA settlement
What is a TCPA settlement?
A TCPA settlement refers to the resolution of a legal dispute, which can occur either on an individual basis or through a class action lawsuit. In this context, a company accused of violating the Telephone Consumer Protection Act (TCPA) agrees to compensate consumers financially instead of continuing with the legal proceedings. These violations may involve various issues, including but not limited to:
- Making telemarketing autodialed calls using ATDS technology or sending texts without obtaining prior express written consent is restricted.
- Reaching out to phone numbers that are registered on the National Do Not Call (DNC) list.
- Using prerecorded voice messages without appropriate consent.
Generally, settlements typically occur when companies choose to avoid the uncertainties and costs associated with legal disputes. Nonetheless, these costs can be significant, even for minor violations.
What is a TCPA settlement risk mitigation strategy?
To avoid costly TCPA settlements, businesses should focus on proactive measures rather than reactive responses. By following best practices and maintaining strong compliance protocols, organizations can greatly decrease the risk of legal issues. Here are key strategies to reduce TCPA-related risks:
1. Get clear, documented consent:
- Secure prior express written consent (PEWC) to be contacted (phone call or text messages) using straightforward and unambiguous language.
- Disclose the purpose of contact and obtain explicit agreement for communication via phone, text, or prerecorded messages.
2. Maintain records of given consent:
Keep well-organized records of signed consent forms, communication logs, opt-out information, and lead details. Detailed documentation serves as crucial evidence in demonstrating compliance if faced with a lawsuit.
3. Scrub leads against DNC lists:
Regularly check contact lists against the National DNC Registry, state-specific DNC lists, and internal DNC registers. Failure to adhere to this practice significantly heightens the risk of legal action and is easily avoidable. Regularly check the RND Reassigned Numbers Database service for phone number owner changes.
4. Train sales & marketing teams:
- Integrate TCPA compliance awareness into the organizational culture by including guidelines in employee training.
- Conduct routine compliance training sessions and mandate checklist reviews before launching marketing campaigns.
Ensuring that all staff members are well-informed about TCPA regulations is vital to prevent inadvertent violations that could lead to legal disputes.