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Keeping lead generation practices compliant will be more important than ever in 2025 due to the new FCC rules. The update to the Telephone Consumer Protection Act (TCPA) will profoundly affect telemarketing, SMS campaigns, and robocalls, forcing businesses to adhere to consumer-friendly standards.
In this article, I’ll discuss:
As a response to unwanted telemarketing, the TCPA was enacted in 1991. A prerecorded voice message, SMS text message, or fax sent to consumers without their permission is prohibited under this law, which is enforced by the Federal Communications Commission (FCC).
Contact hours | Businesses can only reach consumers between 8 AM and 9 PM. |
Do Not Call lists | Compliance with national and state Do Not Call lists is mandatory. |
Internal no-contact list | Businesses must maintain their list of individuals who do not wish to be contacted. |
Clear identification | All communications must include clear identification and contact information. |
Remember: TCPA violations can be expensive, as each unauthorized contact may incur penalties of between $500 and $1,500.
Even big players like Keller Williams faced fines as high as $40 million, while Final Expense Direct (FED) had to pay hundreds of thousands in penalties. FED even ended up in a $100,000 lawsuit because their trusted lead agency failed to follow TCPA rules.
As 2025 approaches, it’s crucial to stay on top of the new TCPA rules for your lead generation efforts. Not only will this protect your business from legal issues, but it will also help build trust with your customers.
Phonexa’s marketing automation suite includes eight integrated products to enhance your marketing efforts and ensure compliance.
Elimination of third-party consent forms | Companies will not utilize third-party consent forms anymore. The new TCPA regulations state that each company must seek individual consent from the consumer. |
Individual consent | A company clearly distinguishes its forms of communication (e.g. informs a consumer of the nature and detail of a phone call as separate from say, a text message and/or email), thus promoting honesty in advertising practices. |
Disclosure instructions | Companies need to make the consent form and the disclosure straightforward, short, and simple to understand. |
Communication relative to contents | All communications must be related to the particular consumer’s interests and their prior behavior, thus eliminating the chance of sending any unsolicited messages. |
Phonexa’s LMS Sync can address these issues effortlessly, keeping you on the legal side while enhancing your lead generation and conversion activities.
Since February 2024, AI-driven calls have been classified in the same category as old-fashioned robocalls, requiring one-to-one consent before the call. The same goes for text messages: in December 2023, the TCPA expanded Do-Not-Call protections to text messages.
Starting March 26, 2024, marketers must get explicit consent before texting consumers on the Do-Not-Call registry. A single opt-out text from a consumer will stop all future marketing messages.
Here’s how you can deal with these changes:
Source: CompliancePoint
Keller Williams Realty | In 2023, Keller Williams faced a risk of $40 million in fines for complaints regarding the use of robocalls without adequate compliance checks. The high penalty clearly demonstrates the base fund for non-adherence to laws. |
Final Expense Direct (FED) | FED was dealt a fine of $100,000 for infringement after its lead generation firm called individuals on the Do Not Call registry without verifying their consent. This clearly shows the need to engage trustworthy players. |
American Eagle Outfitters | American Eagle took the burden of a $14 million class action suit for the unlawful customer’s content marketing messaging, a lesson on the dangers posed by disregarding the TCPA. |
Cohesive Technologies | Cohesive Technologies was assessed a fine of $3.6 million for carrying out auto-dialing without the explicit authorization of the consumers. |
Jiffy Lube | Jiffy Lube was ordered to spend $4 million for unsolicited marketing text messages sent which made it inappropriate to send marketing text messages without proper consent. |
Replace Lead Compliance Solutions | Utilize platforms that will help your team verify consumer consent and maintain compliance. |
Use Double Opt-In Emails | Double opt-in might help you leave only interested clients on your email list and ensure compliance. |
Keep the Contact List Clean | Check your contact lists against the Do Not Call (DNC) Registry to avoid reaching out to consumers who have opted out. |
Monitor Lead Source Transparency | Kow the origin of your leads and ensure your lead acquisition practices comply with TCPA laws. |
Automate Opt-Out Management | Managing opt-out requests automatically to streamline the process and ensure compliance. |
Stay Abreast of New Consent Requirements | Modify consent forms for each sellerProvide detailed information for consumersDocument all obtained consents for compliance |
Implement a Robust Consent Management System | Integrate consent management platforms (CMPs) with existing systems to manage consent across all channelsRegularly conduct software audits to identify compliance gaps |
Train Your Team on TCPA Compliance | Training Topics:Overview of TCPA regulationsImportance of explicit consentProcedures for handling consumer inquiries about consent |
Vetting Third-Party Sources | Conduct thorough vetting of third-party vendors to ensure they have robust compliance protocols.Key Questions to Ask:How does the vendor collect consumer consent?Can they provide consent documentation for each lead? |
Monitor Compliance Regularly | Continuous compliance monitoring can help identify FCC and TCPA compliance issues before they escalate.Monitoring Practices:Review call and text logs against consent recordsSet alerts for communications sent to opted-out consumers |
Maintain Clear Communication with Clients | Keep clients updated on compliance efforts and regulatory changes.Communication Strategies:Schedule quarterly compliance reviewsShare insights on regulatory changes |
For more information, check these TCPA Compliance Resources and the FCC website.
Phonexa is a comprehensive performance marketing software suite that ensures compliance across the board, including the coming FCC update, while helping you buy or sell leads at the best price while uncovering their journey from top to bottom.
Here’s what I mean:
LMS Sync | Lead management system |
Call Logic | Call tracking and analytics platform |
Cloud PBX | Cloud phone system |
Lynx | Click tracking software |
E-Delivery | Email marketing tool |
HitMetrix | User behavior analytics and CRO software |
Opt-Intel | Email suppression list management solution |
Books360 | Accounting software with integrated invoice options |
Book a demo to discover how Phonexa can assist you in buying and selling leads while maintaining compliance.
The Telephone Consumer Protection Act (TCPA) of 1991 was enacted by the Federal Legislative Authority to protect consumers’ interests with respect to unsolicited commercial phone calls. It limits the use of automatic telephone dialing system, artificial voice, and text messages to consumers who have not consented to such contact.
To ensure TCPA compliance, businesses should implement several practices, including:
When searching for compliant lead generation agencies, consider the following:
TCPA violations can result in significant penalties, with fines ranging from $500 to $1,500 for each unauthorized contact. This can lead to costly litigation, damage to your business reputation, and loss of consumer trust, making compliance a critical aspect of lead generation strategies.
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