The Telephone Consumer Protection Act of 1991 was enacted to safeguard consumers from unwanted telemarketing, faxes, and automated messages. The law restricts automatic dialing systems, prerecorded voice messages, and unsolicited faxes to protect consumer privacy and reduce disruption caused by telemarketing.
TCPA compliance options are obtaining prior express consent from consumers or employing manual dialing methods.
TCPA violations
- The Federal Communications Commission (FCC) has issued a combined total of $208.4 million in fines since 2015 for violations of the TCPA. Yet, as of 2019, only $6,790 had been collected.
- In March 2021, the FCC imposed a record $225 million fine on Texas-based robocalls for placing approximately one billion robocalls nationwide.
- The Federal Trade Commission (FTC) revealed a sharp decrease in grievances received on unwanted telemarketing calls, dipping over 50% since 2021.
Protecting customers
The TCPA remains a powerful tool for protecting consumers against intrusive and unwanted calls. It leaves their privacy unblemished.
This quote highlights the act’s purpose of fulfilling consumer rights when telemarketing behavior has been altered.
Companies overcoming obstacles
The U.S. Navy contracted Campbell-Ewald Company to implement a multimedia recruitment drive for young adults. In 2006, Campbell-Ewald sent unsolicited text messages promoting Navy career opportunities. Jose Gomez, one of the recipients of an unsolicited message, filed a class-action lawsuit alleging TCPA violations. The Supreme Court decided that an unaccepted settlement offer does not preclude a plaintiff’s claim from being mooted and that government contractors are not entitled to the government’s sovereign immunity when they violate federal law.
In another instance, Citibank was charged with TCPA violation by sending unsolicited pre-recorded messages to non-customers regarding overdue credit card accounts between August 2014 and July 2024. The case resulted in a $29.5 million settlement, allowing affected individuals to claim up to $850 without needing to have been Citibank customers. This settlement underscores the TCPA’s role in ensuring consumers are not exposed to unwanted communication.
Managing compliance
Challenge: One of businesses’ biggest problems is ensuring their marketing campaigns are TCPA-compliant.
Solution: Businesses must implement proper consent management systems, scrub their call lists regularly, and train employees on compliance. Using technology that filters numbers on the Do Not Call Registry can also minimize risks.
Compliant telemarketing communications
- Obtain clear and documented consent before initiating telemarketing communications.
- Periodically update contact lists to remain accurate and in compliance with consumer preferences.
- Educate employees regarding TCPA legislation and the importance of complying.
- Utilize software that automatically cross-checks numbers against the Do Not Call Registry.
- Stay updated on telemarketing legislation changes to remain in compliance.
