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Compliance

May I Text You?

Contributing Author: Steve Roennau Vice President Compliance EFG Companies
Contributing Author:
Steve Roennau
Vice President
EFG Companies

This might seem like a trite question in today’s digital, over-socialized world. While obtaining permission from a customer to text them has always been a legal requirement, recent court cases have reminded the retail automotive industry that indeed, dealerships must have permission prior to sending a text.  

In the past, regulators were focused on companies sending out marketing texts to customers they did not have permission to text. Now, regulations may be enforced on something as simple as a salesperson texting a customer with a follow-up message on an available vehicle.

Telephone Consumer Protection Act

Specifically, the Telephone Consumer Protection Act (TCPA) governs any dealership’s phone call or text message marketing. Let’s review the rules under the TCPA.

If you want to send a customer a text message, you must obtain prior written consent before sending anything. Written consent can include hand-written signatures or even a simple email. You can also obtain consent by including it in your contact form on your website. Simply add a checkbox asking if the customer consents to being contacted via email, phone call, or text.

You may call/text your current customers and former customers for 18 months after your relationship with them ends, even if they are on the national Do-Not-Call list. This includes both sales and service relationships, i.e., when they buy a car or even rotate their tires.