What’s more out of control when it comes to spam: your email inbox or your text messages? If we had to guess, it’s probably your email, as the phone industry is better at regulating who has permission to send texts. (Dear Google: your spam filter isn’t working anymore. Signed, everyone.)
For business texting, the US has clear regulations that customers must “opt in” (provide consent to receive text messages), and companies must provide easy ways to “opt out” (an action taken by the recipient to stop receiving text messages). If you’re a business that sends text messages, remaining compliant is an absolute must.
Not sure how to stay compliant? We’ve got you covered!
Why SMS opt in matters
The Telephone Consumer Protection Act (TCPA) was first passed in 1991 and has been revised several times since. It covers all forms of business communication, including SMS.
To comply with TCPA, businesses must get express written content — also known as opt-in — before texting customers. Failure to comply with TCPA rules can result in fines from the Federal Communications Commission (FCC). You may also violate carrier guidelines and could lose access to customers on networks like Verizon or AT&T.
Maintaining TCPA compliance is a must since texting is one of the most valuable channels for businesses. The Cellular Telecommunications Industry Association (CTIA) reports that text messages have an open rate of 98%, compared to 21% for emails. This makes complying with TCPA opt-in and opt-out requirements essential for communicating with customers.
How opting in works
Opting in happens when customers give a business permission to contact them. There are several types of opt-ins, including:
- Verbal consent: A customer gives verbal permission to receive texts, such as during a conversation at a service location.
- Physical form: A customer checks a box on a paper form to give consent for text messages.
- Web form: A customer completes a web form that includes explicit consent to receive texts.
- SMS keyword: A customer sends a specific keyword (e.g., “SIGNUP”) via text message to indicate their consent to receive communications.
Additionally, when you collect consent for text messaging, your business needs to think about single opt-in versus double opt-in. TCPA requires only single opt-in, but CTIA best practices recommend double opt-in.
Examples of opting-in
Our SMS-compliant opt-in form ensures businesses collect explicit consent from customers in a clear and transparent way. Customers can provide their name, email, and phone number while also agreeing to receive automated text messages by checking a required consent box.
To comply with regulations, the form includes:
- A required checkbox for consent to receive text messages
- A link to the Terms and Conditions and Privacy Policy that clarifies how customer information will be used
- A disclosure about message frequency, data rates, and an easy way to opt out (e.g., texting STOP)
Clothing brand SKIMS uses an SMS keyword. The website displays this message so customers can opt in to receive texts. Usually, the keyword is sent to a 5- or 6-digit business text number, also known as a short code.
It’s best to offer various opt-in mechanisms to cater to different customer preferences, ensuring a seamless experience for everyone.
Need some more inspiration? Check out our consent to receive text messages template.
Examples of double opt-in
Both SMS opt-in examples above are for marketing and promotional texts, which require double opt-in.
Upon completing the web form, the customer can receive an automated text message requesting confirmation. By replying “Y,” they provide double opt-in consent.
It’s also common for opt-in messages to say, “Message and data rates may apply.”
Requirements and best practices for SMS opt-in
The TCPA has some additional requirements for SMS messages, and CTIA has its own guidelines. Here are some best practices to follow to ensure you’re not annoying your customers or getting flagged as spam:
1. Text within business hours
The TCPA states that it’s illegal to communicate with customers outside of business hours. By its definition, this is between 8:00 AM and 9:00 PM in the recipient’s local time zone. If you send messages outside of these hours, you risk a TCPA violation.
With OpenPhone, you can schedule texts based on the recipient’s time zone, ensuring that you stay TCPA compliant.
2. Obtain customer consent for each campaign
If you want to send promotional or recurring messages, you should get an additional layer of consent (double opt-in). Additionally, you have to get separate consent for each SMS marketing campaign. If you send promotional and transactional text messages, you need to get consent for each.
Additionally, customer consent for SMS text messages is business-specific. If you own two businesses — say, a soap-making business and a dog-walking business — you can’t use consent from one to send marketing texts for the other without obtaining explicit permission for each business.
3. Keep a record of opt-ins
Since unwanted and spam text messages are a hot-button issue, the cost of noncompliance is steep. In addition to TCPA fines — which can be assessed per violation — you could face a lawsuit that has the potential to cost you thousands of dollars. At a minimum, you damage your brand image and reputation.
In case a dispute arises with new subscribers, you should have proof of opt-in consent for each customer. Retain these records even after the customer has opted out.
In your OpenPhone workspace, you can easily bulk export all message logs with a customer, which you can use as proof of opt-in consent (the “Y” or “YES” response to an opt-in message).
4. Include opt-out instructions
To stay compliant, you also need to provide customers with an easy way to opt out. Opt-out requests are easiest with a standardized word, such as “STOP” to unsubscribe. You don’t need to set up multiple opt-out options (such as informing customers that they can use STOP or END).
Additionally, CTIA guidelines require you to recognize the natural language that customers may use. If your keyword is STOP and the customer replies, “Don’t send me any more messages,” you still need to recognize the opt-out text message. Per CTIA guidelines, you can send one final message after a customer opts out to confirm that the customer has opted out successfully.
You can send opt-out confirmation messages automatically using OpenPhone and Zapier.
5. Avoid generic link shorteners
Many companies try to keep messages short by using link shorteners with URLs. If you want to do the same, don’t use generic link shorteners. Spammers love using public link shorteners, so most US carriers automatically block messages containing bit.ly or tiny.url links.
Instead, you can do one of the following:
- Remove https:// and www from the URL (example: openphone.com).
- Shorten the copy of the text itself to make space for the link.
- Sign up for a messaging service that offers custom link shortening.
Why you should create ways to opt in to text messages
Don’t let business texting compliance intimidate you: it’s worth learning the legal requirements so you can communicate with your customers via text. According to MarTech, 75% of consumers have made purchases as a result of SMS marketing.
Even if you don’t rely on text message marketing, there are many other ways texting can benefit your business. You can:
- Offer faster service and an improved customer experience.
- Send appointment reminders and follow-ups.
- Keep customers informed about orders and deliveries.
- Inform customers of special offers or send coupons.
When you set up your opt-in methods and opt-in process, you’re maintaining SMS compliance and improving deliverability. When you collect explicit consent to send SMS text messages, you reduce the likelihood that recipients will mark your texts as spam.
Manage SMS opt-in consent at scale
Text messaging requires compliance with TCPA regulations, which means having clear processes to manage messages and customer replies effectively.
OpenPhone simplifies compliance with features like text message templates and snippets your entire team can use to ensure consistency. Automated messaging ensures your texts are sent within business hours and maintains a professional tone.
You can also complete US carrier registration through OpenPhone to lower the risk of mobile companies like AT&T, Verizon, and T-Mobile filtering your messages on their network. You want to make sure your messages reach your customers!
To see how OpenPhone can work for your team, sign up for a free trial.
