Outbound calls and text messages are indispensable for targeted customer engagement and revenue generation. However, these communication channels are governed by strict regulations designed to safeguard consumers from spam and unsolicited contact.
The Telephone Consumer Protection Act (TCPA) dictates stringent rules around the use of telemarketing and SMS outreach for businesses.
Noncompliance with TCPA regulations can result in substantial financial penalties and legal ramifications, posing a significant risk to businesses.
This blog post outlines a detailed TCPA compliance checklist. We’ll cover what the TCPA is, discuss essential tips for staying compliant, and provide additional safeguards to help you protect your business from TCPA violations and hefty penalties.
Enacted in 1991, the Telephone Consumer Protection Act (TCPA) is a federal law designed to put an end to the nuisance and invasion of privacy caused by robocalls and unsolicited telecommunications.
TCPA establishes regulations for telemarketing calls, text messages, faxes, and voicemails, as well as Voice over Internet Protocol (VoIP) calls.
Regulations under the TCPA set specific limits on telemarketing practices, including permissible call times and the necessity of maintaining a Do-Not-Call (DNC) list. With potential fines reaching up to $1,500 per violation, understanding and adhering to TCPA regulations is not just a legal obligation but a critical factor for your business’s financial health.
Principal TCPA considerations include:
The following tips and best practices will help ensure your company stays on the right side of telecommunication laws.
Consent is fundamental to TCPA compliance, serving as the legal basis for initiating communications with consumers.
However, there are two types of consent — express and implied. Understanding the nuances between them is crucial for staying compliant and navigating the regulatory landscape effectively.
Express Consent
Express consent is intentionally and explicitly given by the consumer and should be typically documented in writing. This type of permission is unequivocal, as the consumer directly states their willingness to receive telemarketing communications. Obviously, express consent is robust and detailed, which is critical if you plan to use automated systems for sending messages or making calls.
For express consent to be valid, it must include a few key elements:
For digital interactions, you can obtain express consent through checkboxes on online forms that are not pre-checked, ensuring that the consumer actively opts into communication rather than it being assumed by default. Also, be sure to add a clear description of what the consumer is signing up for next to the checkbox.
Finally, to be on the safe side, make sure each prospect or customer signs an agreement allowing you to call them. Obtaining a digital signature is an explicit and legally binding confirmation that the customer understands and agrees to the terms of communication.
It’s worth mentioning again that the customer can withdraw their consent at any time, and you have to act on this request immediately.
Implied Consent
Implied consent is less direct and can be inferred from the actions or the context in which the consumer provides their contact information.
For example, if a customer provides a phone number on an order form without directly opting out of marketing communications, one might argue that they have given their implied consent to be contacted.
However, TCPA regulations are rigid, and implied consent may not suffice for automated telemarketing communications.
Here’s what to bear in mind when obtaining implied consent:
Keeping detailed and accurate customer records is crucial for staying compliant.
Respecting a customer’s request to opt out of communications shouldn’t be just a legal obligation — it’s essential for maintaining a positive brand reputation and building trust.
Here’s how to do this effectively:
With evolving TCPA regulations, choosing the right technology is essential for staying compliant and making the most of your outbound call campaigns.
Let’s break down why your dialing system matters.
Predictive vs. Progressive dialers
Predictive dialers dial multiple numbers simultaneously, hoping to connect with a customer when an agent becomes available.
This doesn’t always go as planned since there isn’t always an available agent to take the call, which, in turn, leads to a lot of dropped calls. Given that the Act tolerates a maximum of 3% dropped calls, it’s clear that a predictive dialer isn’t a good solution for your call center.
On the other hand, progressive dialers initiate calls only after an agent is ready, providing a better customer experience and minimizing compliance risks.
VanillaSoft takes dialing compliance a step further with an intelligent auto dialer that adapts to your team’s real-time capacity, minimizing abandoned calls.
This translates to a smoother, more efficient calling process while keeping your telemarketing activities within the law.
Besides, let’s not forget that consumer confidence is crucial for successful calls. Some people are reluctant to answer a call if it comes from an unfamiliar number or if it’s not coming from a local area code.
VanillaSoft’s SmartCaller ID allows you to display a caller ID on prospects’ phones with a local number matching their area code.
This way, you can create a sense of familiarity and local presence, which will increase the likelihood that your prospects will pick up. Such an approach can significantly boost the effectiveness of your outreach efforts and build initial trust with potential customers.
The TCPA is a complex law, but the potential consequences of non-compliance are severe. By following our TCPA compliance checklist and implementing best practices, your business can mitigate risks and ensure responsible communication with consumers. However, remember that TCPA regulations aren’t just about avoiding fines. They’re about respecting consumer privacy and preferences, as well as demonstrating your commitment to ethical communication practices while building trust with your audience.