Is Your Dealership Ready For Changes To The Telephone Consumer Protection Act?

Recently the Federal Communication Commission (“FCC”) enacted new rules and regulations related to the Telephone Consumer Protection Act (“TCPA”), which regulates how companies may contact consumers by telephone.  TCPA prohibits companies from contacting consumers via automated dialing systems, either by text or by telephone, without prior express consent of the party called.  These rules, effective October 16, 2013, significantly change what constitutes prior express consent.

TCPA now requires firms to obtain prior written consent for auto-dialed marketing or advertising calls and text messages.  Acceptable written consent must include clear and conspicuous disclosures that the consumer consents to receiving auto-dialed calls or text messages, including pre-recorded messages, on behalf of a specific seller, and clear and unambiguous acknowledgement that the consumer consents to receive such calls and text messages at the number provided.  The company cannot condition the sale of goods or services on the consumer consenting to receive auto-dialed marketing or advertising calls, and the caller bears the burden of demonstrating the consumer consented to the contact.   An “opt-in” text reply alone may not meet the new prior written consent required by TCPA.  These revisions apply retroactively, so any companies that have received consent prior to the enactment of these new rules will likely have to obtain consent from the consumer again.

Dealers have to be mindful of how these changes to TCPA affect their businesses.  First, if you utilize a third-party to solicit consumers via calls or text messages, you must ensure that your vendor complies with TCPA.  If not, you may find your business liable for violations of the law (see: “Lithia Faces $2.5 Million Tab For Texting”).  Even if you do not use an outside vendor in the aforementioned manner, you may still have to comply with TCPA if you use a device capable of auto-dialing to contact consumers by text or by telephone.  It is likely that TCPA’s restrictions encompass computers capable of auto-dialing.  So, if you utilize a service such as Google Voice, Skype, or an auto-dialer through a CRM system, you will likely need to obtain prior written consent before soliciting consumers by calls or text messages.