SMS compliance: Protecting your business in a regulated world 

Why SMS still matters for regulated industries 

In today’s evolving digital landscape, SMS remains one of the most effective and efficient communication tools for businesses. It’s especially well-suited for delivering billing alerts, outage notifications, appointment reminders, and emergency updates. For highly regulated industries, timely communication isn’t just important, it’s often required by law. 

The legal stakes of texting services for business compliance 

Despite it’s effectiveness, this powerful channel comes with serious regulatory responsibilities. Under the Telephone Consumer Protection Act (TCPA), businesses can face fines of up to $1,500 per message for willful violations, with no maximum cap on damages.¹ The law ensures consumers have control over who may contact them and aims to reduce unsolicited messages, spam, and fraud. Staying compliant with the constantly evolving SMS regulations is essential to avoiding substantial financial penalties and maintaining customer trust. 

Both federal and state-level laws may apply, and the requirements often vary based on the type of message being sent, whether promotional, informational, transactional, or emergency-related. 

Understanding the TCPA for business text messaging 

The Telephone Consumer Protection Act (TCPA) is the foundational federal law regulating how organizations use text messaging to reach consumers. It governs all forms of automated communication, including SMS platforms and notification systems commonly used in regulated industries. 

Types of Consent: PEC vs. PEWC 

The TCPA applies to any SMS messages sent via an Automated Telephone Dialing System (ATDS), including: 

Transactional or informational messages (such as outage updates, appointment reminders, or account alerts) require prior express consent (PEC).  

• A consumer must voluntarily provide their phone number for that specific type of communication.² 

Promotional or marketing messages (such as  special offers, upgrades, or referral programs) require prior express written consent (PEWC). 

• This consent must be documented in writing and clearly authorize the sender to contact the recipient using an auto dialer or prerecorded voice for marketing purposes. The signature may be obtained electronically under the E-SIGN Act.³   

Because the TCPA’s scope is wide, organizations must understand how the law applies to their specific use case. Moreover, compliance requirements may vary depending on message type and whether recipients have provided proper consent. 

Read about TCPA changes

Emergency purposes exemption to the TCPA: 

While most SMS messages require either prior express consent (PEC) or prior express writeen consent (PEWC), the FCC allows certain texts to be sent out without consent if they are for emergency purposes.⁴ These are communications made solely to protect health and safety, such as alerts about an imminent danger.⁵ For instance, a utility may send an immediate text warning customers about a hazardous outage in their area. Before sending any urgent alerts, confirm they meet the FCC’s emergency criteria and are clearly distinguishable from informational or promotional messages to ensure compliance.  

Impacts of TCPA violations on regulated industries: 

Noncompliance with the TCPA can create serious challenges for regulated industries, including: 

• Fines hit the bottom line and can’t be paid via rate increase 

• Public perception can nosedive, and can invite increased media coverage 

• Violations damage credibility with regulators and could lead to more aggressive oversight 

• Violations damage a utility’s reputation and brand 

• Lack of compliance and media scrutiny has a negative impact on CSAT and NPS scores 

While the TCPA sets the federal standard and is essential to follow, compliance doesn’t stop there. 

Comply with revocation records.

Why state laws matter for SMS compliance 

Some states go beyond the TCPA and enforce additional requirements that impact how and when businesses can send SMS messages to consumers. For example, Florida restricts business text messaging to between 8 a.m. and 8 p.m. in the recipient’s local time zone, as outlined in Florida Statute §501.616(6)(a).⁶ Some states also impose different or more severe penalties for violations, including higher fines, increased litigation risk, or even criminal liability in certain cases. Staying informed on constant updates and changes to laws is critical to avoiding violations and protecting both your customers and your business. 

How Convey supports compliant texting services for businesses 

Navigating the complexities of SMS compliance can be overwhelming, but you don’t have to do it alone. At Convey, we specialize in business text messaging tailored for the unique communication needs of highly regulated industries like utilities and healthcare. Our purpose-built solutions help you deliver timely, relevant messages that enhance engagement while taking compliance considerations into account. 

Whether you’re delivering SMS online billing alerts, appointment reminders, or operational notifications, our solutions are designed to support texting services for business that are effective, efficient, and customer-focused – so you can strengthen relationships and enhance service delivery.  

Important compliance disclaimer 

This blog is for informational purposes only and does not constitute legal advice. Consult your legal counsel to ensure your specific SMS practices comply with all applicable laws. Whether you’re in utilities, finance, healthcare, or another regulated sector, SMS can be a powerful tool, but only when used within proper legal boundaries. 

Stay compliant. Stay connected. Get started with Convey today.

References: 

1. Federal Communications Commission.  FCC Actions on Robocalls, Telemarketing.  https://www.fcc.gov/general/telemarketing-and-robocalls Federal Communications Commission 

2. Federal Communications Commission. (2012). Declaratory Ruling, FCC 12-21 (p. 13).  https://docs.fcc.gov/public/attachments/FCC-12-21A1_Rcd.pdf Federal Communications Commission 
   (Note: The link points to the same FCC site as above where the ruling can be found.) 

3. Federal Communications Commission. (2012). Declaratory Ruling, FCC 12-21 (p. 12).  https://docs.fcc.gov/public/attachments/FCC-12-21A1_Rcd.pdf Federal Communications Commission 

4. Federal Communications Commission. Telephone Consumer Protection Act – 47 U.S.C. § 227 (TCPA) Rules [PDF].  https://www.fcc.gov/sites/default/files/tcpa-rules.pdf Federal Communications Commission 

5. Federal Communications Commission. (2020). DA-20-318A1 [PDF]. https://docs.fcc.gov/public/attachments/DA-20-318A1.pdf FCC Docs 

6. The Florida Senate. (2020). Chapter 501, Section 616 – Unlawful Acts and Practices. Florida Statutes. https://www.flsenate.gov/laws/statutes/2020/501.616 The Florida Senate