TCPA & SMS Compliance Guide

What is the TCPA?

The Telephone Consumer Protection Act (TCPA) is a federal law enacted in 1991 that regulates telemarketing calls, auto-dialed calls, prerecorded calls, text messages, and unsolicited faxes. While originally focused on phone calls, the law has been interpreted by the FCC and courts to apply to SMS text messaging.

The TCPA works alongside other regulations like the CAN-SPAM Act (for email), state telemarketing laws, and carrier policies to create a framework for lawful business communication.

Why TCPA Compliance Matters

Financial Risk

TCPA violations carry significant statutory penalties:

• $500 per violation for negligent violations (each text to each recipient is a separate violation)
• $1,500 per violation for willful or knowing violations (treble damages)
• Class action exposure: TCPA lawsuits are frequently brought as class actions, multiplying exposure dramatically

Reputation & Deliverability

• Consumer complaints to carriers can result in your number being flagged or blocked
• Poor compliance practices damage client trust and agency reputation
• Repeated violations can lead to your messaging capabilities being suspended

E&O Considerations

For insurance agencies, compliance failures can create E&O exposure. If a client misses an important policy communication because your texting privileges were suspended, or if compliance issues affect your ability to service accounts, it could have professional liability implications.

Types of Consent

The TCPA recognizes different levels of consent depending on the type of message you're sending:

Message Categories for Insurance Agencies

Understanding which category your messages fall into determines what level of consent you need:

Transactional/Informational Messages

These typically require only prior express consent (phone number + agreement to receive texts):

• Policy renewal reminders
• Payment due notices
• Claims status updates
• Appointment confirmations and reminders
• Policy change confirmations
• ID card delivery notifications
• Responses to client inquiries
• Coverage verification

Marketing/Promotional Messages

These require prior express written consent:

• Cross-selling additional coverage
• New product announcements
• Special discounts or promotions
• Referral program invitations
• Holiday greetings with promotional content
• "Bundle and save" offers

How to Obtain Proper Consent

For Transactional Messages

You can obtain consent through:

• Application forms: Include a checkbox for text message consent when collecting client information
• Verbal consent: Ask clients if they'd like to receive text updates and document the date and time
• Website/portal: Include text consent in online enrollment or account creation
• Initial text exchange: If a client texts you first, that can establish consent for ongoing transactional communication

For Marketing Messages

Written consent must include specific language. Example:

Document Everything

Keep records that prove consent was obtained:

• Signed consent forms (physical or electronic)
• Timestamps of when consent was given
• The exact language the consumer agreed to
• Records of any subsequent opt-out requests

Opt-Out Requirements

Under TCPA, you must provide a way for recipients to opt out, and you must honor opt-outs immediately.

Standard Opt-Out Keywords

Carriers and industry standards recognize these keywords as opt-out requests:

Best Practices for Opt-Outs

• Immediate: Stop all messages as soon as an opt-out is received
• Confirmation: Send a single confirmation message acknowledging the opt-out
• No exceptions: Even transactional messages must stop after an opt-out (use other communication channels)
• Maintain records: Keep a list of opted-out numbers and check against it before sending

Do Not Call Registry

The National Do Not Call (DNC) Registry is a separate regulation administered by the FTC. It primarily applies to telemarketing calls, but some state laws extend similar protections to text messages.

When DNC Applies

• Marketing messages: Check the DNC registry before sending promotional content
• Cold outreach: Always check before contacting prospects you don't have an existing relationship with

Exemptions

The following may be exempt from DNC requirements (but consult legal counsel):

• Existing business relationship: You may contact customers you've done business with in the past 18 months
• Inquiry exemption: You may contact someone who inquired about your services in the past 3 months
• Prior express consent: If someone specifically gave consent, DNC doesn't apply
• Purely informational: Non-marketing transactional messages are typically exempt

Accessing the DNC Registry

You can access the National DNC Registry at telemarketing.donotcall.gov. Businesses must pay a fee to download the list and must download updated lists at least every 31 days.

State Laws & Regulations

Many states have their own telemarketing and consumer protection laws that may be more restrictive than federal TCPA requirements.

States with Notable SMS/Telemarketing Laws

How Voley Helps You Stay Compliant

Voley provides several features to support your compliance efforts. However, these tools are assistive — they don't transfer legal responsibility and don't guarantee compliance.

Best Practices for Compliant Messaging

1. Get Consent First, Message Second

Never assume consent. Have a documented process for obtaining consent and always verify consent status before sending messages to a contact for the first time.

2. Keep Transactional and Marketing Separate

Be intentional about categorizing your messages. Don't sneak marketing content into transactional messages. If you want to market, obtain the proper written consent.

3. Always Identify Yourself

Include your agency name in messages so recipients know who's contacting them:

4. Respect Time Restrictions

Don't send messages before 8 AM or after 9 PM in the recipient's time zone. Be mindful of clients in different time zones than your office.

5. Include Opt-Out Instructions

Particularly for marketing messages, include opt-out instructions:

6. Document and Audit

Keep records of consent, opt-outs, and messaging activities. Periodically audit your practices to ensure compliance.

7. Train Your Team

Everyone who sends messages on behalf of your agency should understand these requirements. A single team member's violation exposes the entire organization.

Insurance-Specific Considerations

Common Insurance Messaging Scenarios

*Policy review invitations can be transactional (service-related) or marketing (upsell opportunity) depending on context and wording. When in doubt, treat as marketing.

Sensitive Information

Penalties for Non-Compliance

TCPA Statutory Damages

Additional Consequences

• Class action lawsuits: TCPA violations commonly result in class actions with thousands or millions of class members
• State AG enforcement: State attorneys general can bring actions under state consumer protection laws
• Carrier suspension: Your phone number or messaging capabilities may be suspended
• FCC enforcement: The FCC can investigate complaints and impose additional penalties

TCPA Compliance Checklist

Use this checklist to evaluate your current practices:

Additional Resources

For more information on messaging compliance:

• SMS Best Practices Guide — Practical tips for effective, compliant messaging
• A2P 10DLC Compliance Guide — Carrier registration requirements
• FCC Consumer Guide — Federal Communications Commission resources
• National Do Not Call Registry — FTC's DNC registration site

Need Help?

If you have questions about how Voley can support your compliance efforts, or need help configuring compliance features, we're here to help.