TCPA Violations: A Marketer’s Guide to Avoiding Penalties

TCPA violations pose a significant threat to lead generation marketers. Missteps can lead to costly fines and lawsuits that drain resources and tarnish reputations. In this guide, we’ll break down what TCPA violations are, common causes in the lead generation industry, and best practices to avoid falling into costly legal traps. You’ll walk away with a clear understanding of how to safeguard your business from compliance risks.

What are TCPA Violations?

The Telephone Consumer Protection Act (TCPA) exists to protect consumers from unwanted telemarketing practices. So, a TCPA violation occurs when a company uses automated dialing systems, prerecorded messages, SMS texts, or faxes to contact individuals without prior express consent. This also includes calls made to numbers on the National Do Not Call (DNC) registry.

For lead generators and buyers, ensuring TCPA compliance is crucial as even unintentional violations can lead to severe penalties. The law applies to phone calls, text messages, and faxes, making it essential for marketers to understand all the nuances to avoid inadvertently breaking the law.

Common Causes of TCPA Violations in Lead Generation

Misinterpreting Consent Requirements

First, understanding what qualifies as “prior express written consent” is essential. Without clear consent, contacting leads can lead to legal trouble. Businesses often assume consumers gave consent when, in fact, they have not fully met TCPA standards.

Failure to Scrub Against DNC Lists

Lead generation marketers often acquire lists from third parties, but failing to check those lists against the National Do Not Call registry (or applicable state DNC lists) is one of the most common compliance pitfalls. Each call to a number on these lists is considered a separate violation.

Inadequate Record-Keeping

Marketers who can’t provide solid proof that they obtained consent will find themselves on the losing end of a TCPA lawsuit. Proper record-keeping ensures that you can prove compliance, showing that each person who was contacted gave their consent to receive communications.

Call Timing and Frequency

Marketers must ensure that calls are placed during legal timeframes and don’t exceed allowed frequencies. The TCPA prohibits calls before 8 a.m. or after 9 p.m. local time. Violating these restrictions can result in hefty fines for each call made outside the permissible windows.

Poor Internal Compliance Controls

Lack of internal compliance controls or improper staff training increases the risk of TCPA violations. Every member of the marketing and sales team must be educated on TCPA guidelines and trained to follow best practices.

How Lead Generation Marketers Can Avoid TCPA Violations

Verify Consent Thoroughly

Every outreach to a potential lead should be backed by clear, express written consent. Ensure that your lead acquisition processes are airtight. You can achieve this by using unambiguous language when collecting consent from leads. Double-checking forms and ensuring that any consent documentation is securely stored will help protect you in case of disputes.

Scrub Lead Lists Regularly

Before initiating a campaign, ensure your lists have been properly scrubbed against the DNC lists. Automated tools can help keep your database clean and reduce the risk of reaching out to someone on the DNC registry. Consider using specialized software that integrates lead management and scrubbing processes to streamline compliance.

Implement Strong Record-Keeping Practices

Documentation is key to proving compliance. Store every detail of the consent provided—whether it was gathered through a web form, phone call, or text opt-in. Using CRM systems that record and timestamp these interactions will make it easier to demonstrate compliance if legal challenges arise.

Control Call Frequency and Timing

Next, marketers should implement systems that automatically manage the frequency and timing of calls. In addition to federal regulations, it’s important to be aware of state-specific rules regarding call restrictions. Setting these parameters into your automated systems will prevent accidental over-calling or calling at illegal times.

Develop Internal Compliance Training Programs

Finally, a comprehensive training program ensures that every team member understands TCPA requirements. Regular training sessions and updates as new rulings or clarifications come from the FCC will keep your team compliant. Have an internal TCPA checklist readily available for your team to use during campaign planning.

Consequences of TCPA Violations

Monetary Fines

The financial penalties for TCPA violations are significant, ranging from $500 to $1,500 per violation. For larger lead generation campaigns, where hundreds or thousands of calls or texts are sent, these fines quickly add up. One recent case resulted in a $40 million settlement due to non-compliance.

Treble Damages

If a court determines that a business willfully violated the TCPA, damages can be tripled (known as treble damages). This is especially concerning for companies that engage in large-scale automated marketing campaigns. The burden of proof lies on the company to show compliance.

Class Action Lawsuits

In addition to individual lawsuits, TCPA violations can lead to class action suits. A single non-compliant outreach campaign can turn into a legal nightmare with thousands of plaintiffs. Settlements can result in tens of millions in damages, not to mention reputational damage that can be hard to recover from.

How to Avoid TCPA Violations

Use Lead Verification Tools

Invest in technologies that can help ensure compliance. Tools like Opta’s lead management platform allow you to track the consent process and automate list scrubbing. By using software designed with TCPA regulations in mind, you can reduce human error and streamline compliance.

Stay Up-to-Date with FCC Updates

The Federal Communications Commission (FCC) regularly updates its guidance on TCPA compliance. It’s crucial to stay informed about any changes in the law to ensure that your marketing practices evolve accordingly.

Legal Advice to Avoid TCPA Violations

If you’re uncertain about the specifics of a TCPA rule, consult a legal expert who specializes in telecommunications law. TCPA lawsuits are strict liability cases, meaning ignorance of the law is not a defense.

Adopt Transparent Communication Practices

Building trust with consumers through transparency can also help with compliance. Make sure your leads fully understand what they are opting into and give them the option to revoke consent easily. Establishing a clear and easy opt-out process can help avoid costly litigation later on.

The Role of Technology in Preventing TCPA Violations

Compliance can be complex. Software like Opta is designed to help businesses to manage lead acquisition and distribution in a TCPA-compliant way. Opta provides integrated tools to verify consent, block non-compliant leads, and maintain proper records.

Summary of TCPA Violations

TCPA violations pose a substantial risk for lead generation marketers, but they are entirely avoidable with the right knowledge and tools. By understanding the causes of TCPA violations and taking proactive steps to maintain compliance, businesses can protect themselves from expensive lawsuits and hefty fines.

For lead generators, publishers, and marketing agencies, ensuring compliance is critical to maintaining trust and staying ahead in a competitive landscape. With technology like Opta, you can simplify compliance, reduce risk, and focus on what you do best—generating leads.

Want to safeguard your business from TCPA violations? Book a demo with Opta today to learn how our technology can help ensure your lead generation campaigns are TCPA-compliant and protect your business from costly penalties.