If you are looking to setup an text message marketing campaign, then it's important that you understand the Telephone Consumer Protection Act (TCPA) or you could face some hefty fines for SMS spam. Watch a recorded version of the webinar here: http://get.tatango.com/webinar-tcpa-sms-marketing-laws Want to learn more about how the TCPA impacts text message marketing, download our guide to TCPA SMS marketing here: http://get.tatango.com/guide-understanding-tcpa-compliance Also, check out our free template to TCPA text message marketing compliance here: http://get.tatango.com/blueprint-tcpa-ctia-template

1. © 2014 Tatango, Inc. All rights reserved.
Understanding TCPA Requirements

2. © 2014 Tatango, Inc. All rights reserved.
Presenters
Derek Johnson - Tatango - @thederekjohnson
Derek Johnson is the founder and CEO of Tatango. He’s been
helping businesses with their SMS marketing strategies for the
last seven years.

3. © 2014 Tatango, Inc. All rights reserved.
Table of Contents
● CTIA, FCC & MMA
● The History of the TCPA
● Advertising Requirements
● Exceptions
● Messaging Requirements
● Enforcement
● Record Keeping/Disputes
● Notable TCPA Lawsuits

4. © 2014 Tatango, Inc. All rights reserved.
CTIA, FCC & MMA
CTIA
● Created by the wireless carriers.
● In charge of enforcing SMS marketing practices.
● Mobile Commerce Compliance Handbook
● CTIA performs audits on SMS programs.
● Very specific in regards to text message marketing. (Msg&Data Rates, help &
stop commands, messaging frequency, links to terms & conditions, privacy
policies, etc.)

5. © 2014 Tatango, Inc. All rights reserved.
FCC
● Federal Communications Commission.
● TCPA (Telephone Consumer Protection Act).
● The TCPA is law... federal law.
● The TCPA is all about businesses receiving permission from the consumer to
text message them, and the specifics around how this permission can be
gathered, and what is allowed after the permission from the consumer is
received.

6. © 2014 Tatango, Inc. All rights reserved.
MMA
● Mobile Marketing Association
● Releases own best practices document.
● Similar to the Mobile Commerce Compliance Handbook that the CTIA puts out.
● The MMA best practices aren’t law, and aren't enforced by anyone.
● Creates industry confusion.

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● 1991 - New law restricts telephone solicitations from businesses to
consumers without an “established business relationship”. Enforced and
managed by the Federal Communications Commission (FCC).
● 2007 - Ninth Circuit determines law applies to unsolicited text message
marketing (Satterfield v. Simon & Schuster).
● 2012, February - FCC announces changes to the TCPA (amendments),
taking effect on October 16, 2013.
The History of the TCPA

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● 2013, October 16 - New TCPA changes go into effect.
● “Established business relationship” requirement replaced with
“prior written express consent” requirement.
● “Prior written express consent” can’t be a condition of any purchase.
● Both requirements need to be clearly displayed to customers before
they opted-in to a text message marketing campaign.

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Prior Written Express Consent
● E-SIGN Act - website form submission, or a text message will suffice.
● Two requirements to get “prior written express consent” from your customers.
o Prior written express consent disclosure (see below).
o Disclosure must be made “clear and conspicuous” to customers.
Advertising Requirements
By participating, you consent to receive text messages sent by an automatic
telephone dialing system.

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Consent to these terms is not a condition of purchase.
Condition of Purchase Consent
● Customers can’t be forced to consent to receive text messages from your
business when they make a purchase.
● Disclosure must be made “clear and conspicuous” to customers.

11. © 2014 Tatango, Inc. All rights reserved.
CTIA Requirements
● Recurring Program Description (& subscribe to receive recurring SMS offers)
● Stop Instructions (Text STOP to opt-out)
● Cost Disclosure (Msg&data rates may apply)
● T&C/Privacy Policy Link (T&C/Privacy Policy www.bobsburger.com/sms-terms)
& subscribe to receive recurring SMS offers. Text STOP to stop. Message&Data
Rates May Apply. T&C/Privacy Policy www.bobsburger.com/sms-terms

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TCPA + CTIA Requirements

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Exceptions
● Purely transactional messages (account alerts, travel updates, shipping
notifications, etc.)
● Entities regulated by the Health Insurance Portability and Accountability
Act of 1996.
● Tax-exempt nonprofit organizations.
● Political organizations.
● Customer’s wireless carriers (ie AT&T, T-Mobile, etc.).
● Debt collectors.

14. © 2014 Tatango, Inc. All rights reserved.
Messaging Requirements
Opting-Out
● Text messages must have an opt-out mechanism.
● CTIA required opt-out mechanisms (STOP, END, CANCEL, UNSUBSCRIBE,
QUIT),
Sending Time Frame
● No sending before 8 A.M in subscriber’s own time zone.
● No sending after 9 P.M. in subscriber’s own time zone.

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Enforcement
● Consumer Lawsuit
o Recipients can claim damages of up to $500 for each text message.
o Willfully or knowingly violate the TCPA? Court may increase damages
to $1,500 per text message.
● State initiates civil action against your company.
● Complaints may be filed with the Federal Communications Commission,
which has the power to assess penalties against your company.

16. © 2014 Tatango, Inc. All rights reserved.
Record Keeping/Disputes
Record Keeping
● It’s your business's responsibility to bear the burden of proof for both...
o To demonstrate that a clear and conspicuous disclosure was
provided.
o The customer unambiguously consented to receive text messages
to the number he/she specifically provided.
● To protect your business, it’s advised to maintain each customer’s consent
for at least four (4) years, which is the federal statute of limitations to bring
an action under the TCPA.

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Mobile Opt-Ins
● Keep copies of all advertising that promotes your SMS campaign.
● Keep a record of all mobile terminated, and mobile originated messages.
Web Opt-Ins
● Screenshots of the consent webpage as seen by the customer.
● Complete data record submitted by the customer.
● Keep a record of all mobile terminated and mobile originated messages.

18. © 2014 Tatango, Inc. All rights reserved.
Notable TCPA Lawsuits
Steve Madden
● TCPA Violation: According to the lawsuit, consumers claim that Steve
Madden sent them text messages about Steve Madden products and events
without their consent.
● Settlement: $10,000,000

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Papa John’s Pizza
● TCPA Violation: According to the lawsuit, Papa John‘s franchisees sent
text messages to consumers that had previously purchased pizza, in order to
get them to order again. Papa John’s was unable to provide any evidence that
any customer who received the text messages gave their consent to be text
messaged.
● Lawsuit: $250,000,000

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Jiffy Lube
● TCPA Violation: According to the lawsuit, Heartland Automotive Services, the
largest Jiffy Lube franchisee in America sent over 2.3 million consumers text
messages without their consent.
● Settlement: $47,000,000

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20th Century Fox
● TCPA Violation: According to the lawsuit, Twentieth Century Fox and
FoxStore.com sent unsolicited text messages to consumers advertising the DVD
release of the animated motion picture Robots.
● Settlement: $16,000,000

22. © 2014 Tatango, Inc. All rights reserved.
Simon & Schuster
● TCPA Violation: According to the lawsuit, Simon & Schuster sent unsolicited
text messages promoting a new book to 60,000 mobile phones.
● Settlement: $10,000,000

23. © 2014 Tatango, Inc. All rights reserved.
Coca-Cola
● TCPA Violation: According to the lawsuit, the plaintiff continued to receive unwanted text messages
from Coca Cola, regardless of their attempts to opt out, and despite Coca Cola’s own confirmation that
the defendant would no longer receive text messages.
● Settlement: ....

24. Questions?
Derek Johnson
CEO
Tatango
@thederekjohnson
derek@tatango.com
© 2014 Tatango, Inc. All rights reserved.