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Blogs
July 4, 2024

Don't Get Blocked! How the New FCC Rule Changes Financial Services Text Marketing

Ever feel bombarded by unwanted texts? You're not alone. To combat spam and protect consumers, the Federal Communications Commission (FCC) is implementing a significant shakeup in how businesses can send text messages. Get ready, because these new rules go into effect on January 25th, 2025!

This blog will be your one-stop guide to navigating the new landscape. We'll break down the fundamental changes, explain what you must do to stay compliant and ensure your text messages land in inboxes, not spam folders.

The New FCC Landscape: What's Changing?

The most significant shift in the messaging world comes with introducing the "one-to-one" consent requirement. This means that gone are the days of relying on broad consent forms or pre-checked boxes. Here's what you need to know:

One-on-One Consent: Under the new rules, businesses must obtain explicit, individualized permission from each consumer before sending them marketing or promotional text messages. A blanket sign-up for a company's emails can't automatically translate to text message consent.

The shift from Reliance on Third Parties: Previously, some businesses relied on consent gathered by third-party lead generators. However, the one-to-one rule requires a direct relationship between the business and the consumer providing consent.

Examples of Explicit, Individualized Permission

A customer signs up for a store's loyalty program through a form stating that they want to receive promotional text messages.

A website visitor checks explicitly a box indicating their desire to receive text alerts about new product launches.

The TCPA in Play: These new FCC regulations build upon the Telephone Consumer Protection Act (TCPA), which has long prohibited unwanted calls and texts. The one-to-one consent requirement clarifies how businesses can obtain legal permission for text marketing under the TCPA umbrella.

Dos and Don'ts: Staying Compliant

The new FCC rules are all about respecting consumer choice. Here's a breakdown of what you should and shouldn't do to ensure your texting practices are compliant:

Dos

Get it in Writing: Before hitting send on that marketing text, ensure you have written consent from the recipient. This could be a sign-up form, a website opt-in checkbox, or even a text message exchange where the user confirms their desire to receive messages.

Clear Opt-Out is Key: Don't trap your audience! Ensure your messages clearly explain how users can opt out of receiving future texts. A simple "Reply STOP to unsubscribe" at the end of each message goes a long way.

Respect the Opt-Out: Offering an opt-out option is not enough. You also need a system to honor opt-out requests promptly. This means removing users from your texting list within a reasonable timeframe (as defined by the FCC) after they request to stop receiving messages.

Keep it Simple and clear: Avoid jargon and technical language in your marketing texts. Focus on delivering your message clearly and concisely, making it easy for the recipient to understand.

Don'ts

Spam is a No-Go: This one should be a no-brainer. Sending unsolicited marketing texts to people who have yet to opt in explicitly is a surefire way to get flagged for non-compliance.

Don't Hide the Unsubscribe: Burying unsubscribe instructions in tiny text at the bottom of your message is a recipe for trouble. Make opting out easy.

Honesty is the Best Policy: Deceptive or misleading language in your messages will erode trust and could lead to penalties. Be upfront about the nature of your texts and what users can expect by opting in.

Don't Bombard Consumers: Nobody likes getting text messages every five minutes. Avoid sending excessive or harassing messages that could annoy your audience and violate the TCPA.

Preparing for the Change

With the January 25th, 2025 deadline looming, businesses need to take action to ensure their text marketing practices comply with the new FCC regulations. Here are some tips to get you started:

Obtaining Compliant Consent

Sign-Up Forms: Revise your sign-up forms to clearly state that checking a box signifies consent to receive marketing texts.

Website Opt-Ins: Implement website opt-in mechanisms like checkboxes or pop-ups that explicitly ask users if they want to receive text messages.

Text Message Exchanges: Consider two-way opt-in methods. Users receive a text after an initial sign-up and must reply with a confirmation keyword (e.g., "YES") to officially opt in.

Record Keeping is Key

Maintaining precise and up-to-date records of user consent is crucial. This includes:

  • Consent to store the date and time.
  • Keeping a copy of the specific method used to obtain consent (e.g., sign-up form, text message exchange).
  • Recording any opt-out requests and the date of fullfilment.
  • By having a clear audit trail, you can demonstrate compliance with the FCC regulations in case of any inquiries.

Conclusion

The new FCC messaging rules are ushering in a new era of text message marketing built on respect for consumer choice. Remember, the key takeaways are:

Prioritize Consent: Obtaining explicit, one-to-one consent is the foundation for compliant texting.

Ditch the Spam: Avoid unsolicited messages and focus on providing valuable content to those who have opted in.

Privacy Matters: Respect user privacy by offering clear opt-out options and maintaining transparent communication practices.

Don't let the changes leave you behind! Get ready to navigate the new texting landscape with confidence.

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Sampanna Shrestha
Digital Marketing Associate
Guest Author
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Ever feel bombarded by unwanted texts? You're not alone. To combat spam and protect consumers, the Federal Communications Commission (FCC) is implementing a significant shakeup in how businesses can send text messages. Get ready, because these new rules go into effect on January 25th, 2025!

This blog will be your one-stop guide to navigating the new landscape. We'll break down the fundamental changes, explain what you must do to stay compliant and ensure your text messages land in inboxes, not spam folders.

The New FCC Landscape: What's Changing?

The most significant shift in the messaging world comes with introducing the "one-to-one" consent requirement. This means that gone are the days of relying on broad consent forms or pre-checked boxes. Here's what you need to know:

One-on-One Consent: Under the new rules, businesses must obtain explicit, individualized permission from each consumer before sending them marketing or promotional text messages. A blanket sign-up for a company's emails can't automatically translate to text message consent.

The shift from Reliance on Third Parties: Previously, some businesses relied on consent gathered by third-party lead generators. However, the one-to-one rule requires a direct relationship between the business and the consumer providing consent.

Examples of Explicit, Individualized Permission

A customer signs up for a store's loyalty program through a form stating that they want to receive promotional text messages.

A website visitor checks explicitly a box indicating their desire to receive text alerts about new product launches.

The TCPA in Play: These new FCC regulations build upon the Telephone Consumer Protection Act (TCPA), which has long prohibited unwanted calls and texts. The one-to-one consent requirement clarifies how businesses can obtain legal permission for text marketing under the TCPA umbrella.

Dos and Don'ts: Staying Compliant

The new FCC rules are all about respecting consumer choice. Here's a breakdown of what you should and shouldn't do to ensure your texting practices are compliant:

Dos

Get it in Writing: Before hitting send on that marketing text, ensure you have written consent from the recipient. This could be a sign-up form, a website opt-in checkbox, or even a text message exchange where the user confirms their desire to receive messages.

Clear Opt-Out is Key: Don't trap your audience! Ensure your messages clearly explain how users can opt out of receiving future texts. A simple "Reply STOP to unsubscribe" at the end of each message goes a long way.

Respect the Opt-Out: Offering an opt-out option is not enough. You also need a system to honor opt-out requests promptly. This means removing users from your texting list within a reasonable timeframe (as defined by the FCC) after they request to stop receiving messages.

Keep it Simple and clear: Avoid jargon and technical language in your marketing texts. Focus on delivering your message clearly and concisely, making it easy for the recipient to understand.

Don'ts

Spam is a No-Go: This one should be a no-brainer. Sending unsolicited marketing texts to people who have yet to opt in explicitly is a surefire way to get flagged for non-compliance.

Don't Hide the Unsubscribe: Burying unsubscribe instructions in tiny text at the bottom of your message is a recipe for trouble. Make opting out easy.

Honesty is the Best Policy: Deceptive or misleading language in your messages will erode trust and could lead to penalties. Be upfront about the nature of your texts and what users can expect by opting in.

Don't Bombard Consumers: Nobody likes getting text messages every five minutes. Avoid sending excessive or harassing messages that could annoy your audience and violate the TCPA.

Preparing for the Change

With the January 25th, 2025 deadline looming, businesses need to take action to ensure their text marketing practices comply with the new FCC regulations. Here are some tips to get you started:

Obtaining Compliant Consent

Sign-Up Forms: Revise your sign-up forms to clearly state that checking a box signifies consent to receive marketing texts.

Website Opt-Ins: Implement website opt-in mechanisms like checkboxes or pop-ups that explicitly ask users if they want to receive text messages.

Text Message Exchanges: Consider two-way opt-in methods. Users receive a text after an initial sign-up and must reply with a confirmation keyword (e.g., "YES") to officially opt in.

Record Keeping is Key

Maintaining precise and up-to-date records of user consent is crucial. This includes:

  • Consent to store the date and time.
  • Keeping a copy of the specific method used to obtain consent (e.g., sign-up form, text message exchange).
  • Recording any opt-out requests and the date of fullfilment.
  • By having a clear audit trail, you can demonstrate compliance with the FCC regulations in case of any inquiries.

Conclusion

The new FCC messaging rules are ushering in a new era of text message marketing built on respect for consumer choice. Remember, the key takeaways are:

Prioritize Consent: Obtaining explicit, one-to-one consent is the foundation for compliant texting.

Ditch the Spam: Avoid unsolicited messages and focus on providing valuable content to those who have opted in.

Privacy Matters: Respect user privacy by offering clear opt-out options and maintaining transparent communication practices.

Don't let the changes leave you behind! Get ready to navigate the new texting landscape with confidence.

FAQs

My company uses a third-party lead generator for text marketing. Are we still compliant with the new rules?

No, businesses need to obtain direct consent from consumers themselves under the one-to-one consent requirement. Consent gathered by third-party lead generators may not be considered valid under the new regulations.

How long do I have to honor an opt-out request from a user?

The FCC hasn't specified a precise timeframe but emphasizes the need for a "reasonable" timeframe. Industry best practices suggest responding to opt-out requests within 30 days.

Can I still send my customers text message alerts or notifications without their consent?

Yes, the one-to-one consent requirement primarily applies to marketing and promotional messages. Transactional messages, such as order confirmations, shipping updates, or appointment reminders, may be permissible without explicit consent as long as they are relevant to an existing customer relationship.

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