This allows the bank to be able to predict, with relative certainty, the types of transactions that its customers will take part in, allowing them to determine potentially suspicious transactions more easily and efficiently. To learn more about Customer Due Diligence and delve deeper into Financial Crimes Enforcement Network’s new regulatory requirements, download the following pdf:
TCPA-Telephone Consumer Protection Act
FCC-Federal Communications Commission. The regulatory force behind the TCPA.
ATDS-Automatic Telephone Dialing System or Auto-Dialer.
Any technology with the potential capacity to dial random or sequential numbers, regardless of whether the technology has the current capacity to make the call in issue & equipment to send internet-to-phone text messages.
Text Messages –In the TCPA, text messages are “calls”.
Telemarketing –telephone solicitation.
“Telephone solicitation” means the initiation of a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person, but such term does NOT include a call or message
Overall, car dealerships can ensure they are TCPA compliant by following a few outstanding principles. Below are key take- aways for businesses regarding the TCPA and its recent ruling.
The TCPA was created to protect consumers’ privacy by restricting unsolicited text messages and phone calls, and essentially to prevent spam. To be compliant with TCPA regulations:
The most recent TCPA Omnibus Declaratory Ruling and Order ultimately benefits businesses in several ways. First, to an extent, it clarifies several vague and open-ended aspects of the original TCPA of 1991, and therefore closes several loopholes that fraudulent or malicious parties may use to sue or exploit your business. Of course, this also means that businesses cannot rely on the previous ambiguity; they must be 100% compliant. Second, in the case of non-marketing messages, this ruling reaffirms the previous order that consumers give prior express consent to receive a call or text simply by providing the business with a wireless number.
Text Messaging Solution providers should have the option to show electronic written consent documentation as well as maintain records of written consent.
Internet-to-phone messaging has been qualified by the FCC as an auto-dialer (ATDS) under the TCPA, and therefore requires the same prior express written consent as text messaging.
The statutory penalty for violation of TCPA regulations is $500 per violation (call/text), and these violations have no cap, making violations in the hundreds of thousands of dollars extremely possible for offenders.
The 2015 release of the Declaratory Ruling and Order served to resolve 21 separate requests to the FCC for clarification of the original TCPA in 1991. This document served to strengthen and make stricter several of the regulations that had previously existed; however, the vagueness of the original document, in addition to the relatively new nature of the Ruling, leave the enforcement of the regulations up to interpretation. Until more precedents can be set in court rulings, implementation of the law is largely subjective and uncertain.
Texting Communications Software vendors should have various processes installed in order to educate and aid dealerships in TCPA compliance, but this is all that these software vendors can do. Ultimately, it is up to the Dealership to make use of these tools and education to ensure its employees are following the procedures put in place by the software. Also, a good software solution will guide personnel with pre-installed messages and screens that disable communication unless prior express written consent has been received, providing a safety net.
– At the point of vehicle sale collect
– At the point of vehicle drop-off for service or repair
– Prior to engaging in website chats or forms
– Whenever leads are captured via forms or in person
Yes. Due to the sensitive and sometimes ambiguous nature of the TCPA and its Rulings, a strong legal advisor is always wise. This document has been created by UpdatePromise to help you better understand the TCPA and FCC Rules, and does NOT offer legal advice. Always consult your legal representative for concerns or legal matters.
Send appointment reminders via automated text?
YES
If the customer provided the dealership with a phone number relating to her service appointment.
Text a one-to-one personal message using texting software to gain approval for job repairs?
YES
The provision of a mobile number is sufficient consent for a service advisor to call or text customers regarding a repair order, if the message is not marketing in nature. This includes status updates, vehicle ready, automated online payment texts, and thank you texts. Using programs such as UpdatePromise ensures that any gray area (i.e., texts that do not solely concern previously purchased services) are still compliant.
Initiate an outbound text to a mobile # obtained from the DMS or CRM?
YES
Initiate an outbound text to a mobile # received from a marketing list or other mobile phone list?
NO
This can be interpreted as text marketing and prior express written consent is needed. Dealerships are strongly advised against this action.
Follow up on a phone lead or voicemail with a text?
NO
Follow up on an email lead with a text?
NO
*This would be a violation of TCPA if the device used is an ATDS, and if the text is for marketing purposes. Prior express written consent is required.
Follow up on a chat lead with a text?
NO
Follow up on a text lead with a text?
NO
Since it is unlikely that prior express written consent will be received in this scenario, it should be assumed not allowed under the strictest interpretation of the TCPA. However, there is gray area to this; since the inception of the lead came from text, it’s logical to assume the person is expecting a text in response. If it is timely, includes an opt out instruction and is not telemarketing, then it is likely not to be a TCPA issue.
Follow up with a lead via text with pictures or video of a vehicle using texting software, if the lead gave the salesperson their mobile #?
NO
It depends, once again, upon the content of the message. If it is purely informational and not promotional in nature, then technically it should be compliant. However, photos and videos could be construed as marketing. There is risk in this area and should be treated cautiously.
Text a customer via ATDS to ask if it is okay to text them, or to request they opt-in?
NO
You cannot text a customer via ATDS without prior express written consent.
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