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TCPA Violations: What Businesses Need to Know to Stay Compliant

by Fadi Agour, J.D.

Introduction: The High Stakes of TCPA Compliance

Telemarketing remains one of the most effective ways to generate leads and nurture customer relationships. However, failing to comply with key regulations—especially the Telephone Consumer Protection Act (TCPA)—can lead to devastating financial penalties, lawsuits, and reputational damage.
Since its enactment in 1991, the TCPA has protected consumers from unwanted robocalls, spam texts, and unsolicited faxes. But for businesses, navigating its complex rules is a constant challenge. According to a 2023 report by the Federal Communications Commission (FCC), complaints about illegal robocalls and texts have surged by 62% in the past five years, leading to stricter enforcement.
In this guide, we’ll break down:
  • What constitutes a TCPA violation
  • The 5 most common violations (and real-world cases)
  • How the FCC’s latest rulings impact businesses
  • Best practices to avoid costly fines

Whether you’re in lead generation, healthcare, real estate, or financial services, understanding TCPA compliance is non-negotiable.

What Is a TCPA Violation?

The TCPA restricts the use of:

  • Autodialers (ATDS)
  • Prerecorded voice messages (robocalls)
  • Unsolicited SMS marketing
  • Fax advertisements

As Rich Kahn, CEO of Anura, explains:

“A TCPA violation occurs when a business breaks TCPA rules—whether by calling numbers without consent, using robodialers, or ignoring Do-Not-Call lists. The penalties can be catastrophic.”

 

Key TCPA Requirements

Profile: Retired or nearing retirement, living on a fixed income, and seeking affordable coverage to avoid burdening loved ones.
Marketing Strategies:
  1. Prior Express Written Consent (PEWC) – Required for marketing calls/texts.
  2. National Do-Not-Call (DNC) Registry Compliance – Scrubbing leads against the DNC list is mandatory.
  3. Opt-Out Mechanisms – Every marketing text must include a clear way to unsubscribe.
  4. Reassigned Number Database (RND) Checks – Avoid calling wrong numbers.
Failure to follow these rules can result in $500 to $1,500 per violation—with no cap on damages.

5 Most Common TCPA Violations (And How to Avoid Them)

1. TCPA Text Message Violations

The Risk: Sending promotional texts without prior express written consent (PEWC).
Real Case: In 2022, a major retailer faced a $12 million class-action lawsuit for sending discount texts without proper opt-in.
How to Comply:
  • Use double opt-in for SMS marketing.
  • Include clear opt-out language (e.g., “Reply STOP to unsubscribe”).

 

2. Do-Not-Call (DNC) Violations

The Risk: Calling numbers listed on the National DNC Registry.
Real Case: A mortgage company was fined $7.5 million for ignoring DNC requests.
How to Comply:
  • Scrub leads against the DNC list (updated monthly).
  • Maintain an internal DNC list for opt-outs.

 

3. Cell Phone Robocall Violations

The Risk: Using autodialers to call cell phones without consent.
Real Case: Keller Williams settled for $40 million in 2023 for illegal robocalling.
How to Comply:
  • Obtain PEWC before autodialing cell numbers.
  • Use RND checks to avoid reassigned numbers.

 

4. Illegal Robocalls & Ringless Voicemail Drops

The Risk: Sending prerecorded messages without consent.
Real Case: A Florida-based company was fined $2.5 million for ringless voicemail spam.
How to Comply:
  • Only use robocalls for emergency alerts or transactional messages.
  • Never bypass consent with voicemail drops.

 

5. Ignoring Revocation Rules

The Risk: Failing to honor opt-out requests within 10 business days.
FCC Update (2025):
  • Opt-out instructions must be clear in all texts.
  • Full revocation compliance required by April 2026.
How to Comply:
  • Implement a real-time opt-out system.
  • Train staff on revocation protocols.

 

The True Cost of TCPA Violations

Financial Penalties

  • $500 per unintentional violation
  • $1,500 per willful violation
  • Class-action lawsuits (e.g., $75 million settlement against a cruise line in 2021).

Reputation Damage

  • Negative press (e.g., Washington Post’s 2023 investigation on robocall scams).
  • Loss of customer trust.

Insurance Gaps

Most general liability policies exclude TCPA claims. Some insurers offer dedicated TCPA coverage, but premiums are high.

How to Stay TCPA-Compliant: 6 Best Practices

1. Obtain Clear Consent

  • Use checkboxes with unambiguous language (e.g., “By checking this box, you agree to receive marketing calls/texts.”)

2. Scrub Leads Against DNC Lists

  • Use FCC-approved tools like ScrubPay or DNC.com.

3. Implement Reassigned Number Checks

  • The FCC’s RND database helps avoid wrong-number calls.

4. Train Your Team

  • Conduct quarterly TCPA compliance training.

5. Maintain Detailed Records

  • Store consent logs, call timestamps, and opt-out requests.

6. Consult a TCPA Attorney

  • Legal experts can help navigate gray areas (e.g., B2B vs. B2C rules).

Final Thoughts: Compliance Is Cheaper Than Violations

The TCPA isn’t going away—in fact, enforcement is getting stricter. As The New York Times reported, the FCC issued $300 million in fines in 2023 alone.

Proactive compliance is the only way to avoid:

  • Seven-figure lawsuits
  • Regulatory scrutiny
  • Brand erosion

At RPM, we help businesses implement TCPA-compliant lead generation strategies. Contact us today to safeguard your operations.