May I Text You?

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.

You may also call/text consumers who haven’t bought anything from you yet, but who have recently expressed an interest in what you’re selling for up to 3 months after their initial visit as long as they have provided written consent to be contacted.

If you’re simply inviting the consumer to visit your dealership, or you received the consumer’s name and number from another customer, you cannot make that call without checking the Do-Not-Call list. 

• You may not contact an individual for 60 months if they ask you to put them on your company’s do-not-call list.
• If you’re calling/texting potential customers to invite them to the dealership for a sales presentation, they must reside in the same state as the dealership.
• Do-not-call requests must be processed within 30 days and honored for 5 years.

If you plan to make telemarketing calls/texts, your dealership must:

• maintain an internal written do-not-call policy available for customers who ask for it;
• train callers to comply with the law;
• process and honor do-not-call requests; and,
• identify your dealership on the call/text, and your dealership’s phone number or address.

The Do-Not-Call rules apply to:

• Calls between parties in the same state.
• Calls between parties in different states.
• Any call in which one party is trying to sell something to the other party.
• A call from an F&I manager to an existing customer.
• Text messages from a mobile phone.

Possible penalties for failure to comply with TCPA are at the discretion of the Federal Trade Commission, the Consumer Financial Protection Bureau, the Federal Communications Commission, state governments, and even consumers. Violation of the TCPA could result in fines and fees:

• Up to $16,000 per violation from the FTC.
• Between $5,000 and $1 million per day from the CFPB or FCC.
• Up to $500 per violation to state law enforcement or individual call recipients.

Here’s the good news. There is safe-harbor protection for your dealership if you accidentally call someone on the Do-Not-Call list:

• the existence of a written do-not-call compliance policy and a process for complying with the law;
• having employees who are trained on the do-not-call compliance policy;
• the fact that you monitor and enforce compliance;
• the existence of a company-specific do-not-call list; and,
• the fact that the call was the result of an error.

The Heart of the Matter

Let’s step back a moment and ask, “What is at the heart of this text communication consent?” At its root, it’s about respect. Remember, these consumers are about to spend a lot of money and reveal vital personal and financial details. Respecting a consumer’s preferences on how to engage with your dealership can go a long way toward securing their business and loyalty.

Being upfront and asking the customer “May I text you?” is a simple first step in building a valuable level of trust; and, meeting the consumer on their terms clearly communicates that you are truly interested in them, not just closing another deal.

Don’t think you have to tackle these regulatory challenges alone. With our AFIP-certified field team, we understand compliance at EFG Companies. Let us perform a compliance audit and help you implement the compliant procedures you need to stay profitable in the years to come with advanced training, product development, and consultation. Contact us today.