Have you ever received unwanted texts during election seasons or struggled to stop spam messages? If so, you're not alone. In the early days of business SMS, there were few rules in place, leading to a flood of spam and inconsistent user experiences. However, new regulations, such as The Campaign Registry (TCR) and upcoming Federal Communications Commission (FCC) mandates, aim to bring clarity, trust, and control to business SMS communications.
At TeleCloud, we navigate the same SMS regulations that affect businesses across industries. Giving us first-hand insight into the challenges and requirements of compliance. Our experience in communication and adapting to rules helps us guide you. We aim to prevent unexpected fees and disruptions.
In this blog, we'll cover the latest and upcoming SMS policy updates for businesses. You'll learn why they matter and what steps to take for compliance. By the end, you'll be better prepared to protect your business and keep in touch with customers.
The Evolution of Business SMS Regulations
In the past, business SMS could be likened to the Wild West—few regulations meant businesses could send messages unchecked. This cluttered inboxes with spam, particularly during high-volume periods. Recognizing the need for structure. Regulatory bodies introduced measures to restore balance and trust.
A key milestone was the creation of The Campaign Registry (TCR). It oversees SMS compliance and ensures transparency.
What is The Campaign Registry (TCR)?
The Campaign Registry (TCR) is a governing body for business SMS compliance. To use SMS for communication, businesses must register their campaigns with TCR. This involves a detailed process to ensure transparency.
Image source: campaignregistry.com
How Does The TCR Work?
- Detailed Business Information: Businesses must submit comprehensive information, including their company name, tax ID, EIN, and campaign descriptions.
- Campaign Code Issuance: After review, businesses get a unique campaign code. It "stamps" their SMS messages, verifying the sender and ensuring compliance.
- Compliance Assurance: This campaign code helps the FCC and carriers trace SMS back to the responsible company if any issues arise, such as consumer complaints or regulatory violations.
Why It’s Important: Without a campaign code, businesses may find their SMS messages blocked by carriers or face fines for non-compliance.
Key TCR Compliance Date and What It Means
December 1, 2024: This is the date when full enforcement of campaign codes begins. From this point, if your business SMS messages aren’t registered and stamped with a campaign code, there’s no guarantee they’ll be delivered. Carriers will face penalties for allowing non-compliant messages. These costs will likely trickle down to businesses. For more detailed information, view the 10DLC resources directly.
Is Your Business Ready for SMS Compliance Changes?
The new rules require all businesses using SMS to comply. This includes marketing, transactional, and customer service messages. Here’s what you need to do:
- Register Your Campaigns: Ensure that every SMS campaign is registered through TCR to receive a campaign code.
- Verify Your Details: Make sure all company information submitted is accurate and up-to-date to avoid compliance issues.
- Plan for Deadlines: Even though initial dates can sometimes be extended, it’s crucial to prepare as if they won’t be. Being proactive helps avoid last-minute compliance rushes.
Imagine an Urgent Care that frequently sends SMS reminders. Without registering their campaigns, they notice more missed patient appointments. After a deeper look, they realize their texts aren’t stamped with a campaign code and are flagged as non-compliant. An experienced SMS provider can register their campaigns. This will help them regain patient attendance and avoid fines.
The Broader Implications of SMS Policy Updates and How They Impact Businesses
These compliance steps may seem a hassle. But, they make SMS safer for both businesses and consumers.
Why Compliance is Crucial:
- Enhance Credibility: Messages stamped with campaign codes reassure recipients that they’re from a verified source.
- Avoid Penalties: Compliance helps your business avoid fines and communication disruptions with customers.
- Increase Engagement: Stamped messages are more trusted, leading to better open and response rates.
Did You Know? With email marketing's declining engagement, SMS is now the preferred channel for direct communication. This applies not just to B2C but increasingly to B2B interactions, making compliance more important than ever.
Practical Tip: Review and align your SMS practices with TCR standards early. An experienced provider can streamline compliance. It will keep your communications uninterrupted as regulations evolve.
How Much Does the TCR Cost? How Much is the Fine for Non-Compliance?
Navigating SMS compliance comes with costs, but understanding these upfront can help you stay ahead.
Typical Costs Include:
- Brand Registration: A $4 verification fee ensures your business identity is validated.
- Campaign Vetting: A one-time $15 fee per campaign for approval.
- Monthly Fees: Campaigns incur monthly charges ranging from $2 to $10, depending on the use case.
Non-compliance can result in steep fines, such as up to $10,000 for content violations or $2,000 for phishing attempts. Staying compliant ensures your messages reach your audience without disruption.
Upcoming FCC Regulations in 2024 and 2025
While TCR is the immediate priority, additional FCC regulations set to roll out in 2024 and 2025 will shape the future of SMS communication:
Key FCC Regulations to Keep in Mind:
- Text Blocking (July 24, 2024): Carriers will be required to block texts from numbers deemed illegal by the FCC. Ensure you have a process to report and resolve any mistakenly blocked messages.
- TCPA Amendments (April 11, 2025): New rules will expand consumer rights. They will make it easier for recipients to revoke consent. Businesses must honor opt-out requests within 10 business days.
- Documented Consent: Marketers must maintain clear, documented consent for each recipient and offer easy ways to opt out.
- AI-Generated Texts: The FCC is reviewing policies on AI-generated texts. It aims to alert consumers while prioritizing transparency and privacy.
How to Stay Ahead of Compliance Requirements
- Register and Monitor Your SMS Campaigns: Start by registering your campaigns with TCR and ensure all your SMS practices align with the latest requirements.
- Stay Updated on FCC Changes: Monitor upcoming regulatory changes and implement procedures for consent management and opt-out handling.
- Partner with a Trusted Provider: Work with a provider who knows SMS rules. They should help with campaign registration, compliance updates, and SMS routing.
- Establish Company Guidelines: Create SMS guidelines to ensure compliance in your business. First, specify who can send messages. Then, provide content rules. Also, set standards for timing and frequency. Ensure data privacy and security. Finally, establish protocols for consent management, including opt-in and opt-out options.
Ask yourself: Is my business prepared for these changes? Reviewing your practices now can save headaches and protect your business in the future.
Take Charge of Compliance
Staying ahead of SMS regulations is essential for maintaining seamless and credible communication. By registering your campaigns, aligning with current guidelines, and collaborating with experienced providers, your business can navigate these changes smoothly and confidently.
Don’t wait for deadlines to catch you off guard. Start reviewing your SMS practices today, ensure compliance, and establish systems that adapt as new regulations come into effect. This proactive approach will help your business remain connected, credible, and resilient in the evolving world of SMS communication.
Ready to ensure your business stays compliant and connected with reliable SMS solutions? Visit our TeleCloud SMS page or get in contact below to explore how we can support your communication needs and guide you through evolving regulations. Click here to register your campaign.
