Businesses are increasingly relying on the sms channel to communicate with their customers and vice versa. By the end of 2023, text messages from business-to-consumers is expected to hit a high record of 3.5 trillion, representing a 40% increase in the adoption rate of sms by brands.
Text messaging is popular amongst businesses because it’s one of the few channels where brands can target interested clients who are most likely to see, open and respond to their messages.
While all the statistics and facts about SMS marketing may convince business owners/marketers to sign up and start using this service, failing to comply with regulations around this channel may result in fines and severe penalties.
In this article, we will be looking at the laws and regulations on sms marketing and how you can be compliant with your sms campaigns.
What is SMS Compliance?
SMS compliance is a set of laws and regulations established by organizations and legislation that govern the use of text messaging for business purposes.
Who oversees SMS compliance?
Before we dive into what laws & regulations you need to follow to be compliant, let’s look at who makes and maintains these laws.
The CTIA
The Cellular Telecommunications Industry Association(CTIA) is an international nonprofit group that advocates for legislative and regulatory policies that guide the mobile industry.
The NCA
The National communications authority is a government agency that regulates electronic communications and activities in Ghana.
The Network Operators
Network operators like MTN Ghana, AirtelTigo, or Vodafone Ghana may choose to impose their guidelines for brands to follow when sending business-to-consumer marketing messages via text.
Although operators may not strictly enforce the laws when marketers violate these regulations, they may seek to choose their own course of action should marketers be non-compliant.
SMS Compliance Terms
1. Opt-in
A way that you collect written consent from customers to join your sms sending program. Some popular opt-in methods include Web forms, keyword shortcodes, and paper forms.
2. Express written consent
Express written consent is permission your customers give you via paper or electronic mediums. It gives them the heads-on notice that they will be receiving text messages from your brand.
3. Opt-out
Opt-out is an action your contacts take when they don’t want to receive messages from your business anymore. Usually, they reply to your messages with “STOP” to stop receiving text messages from your brand.
4. Transactional text message
Transactional text messages are sent to customers to keep them updated based on an action they took. For example, order confirmations, balance updates, password change confirmations, etc.
5. Promotional text message
Promotional messages are messages you send to customers with the intention to make a sale, an upsell or advertise a product.
6. Terms and Conditions
Terms and conditions is a document that outlines your entire sms sending program. It details the type of messages you will be sending to your clients, the frequency and any relevant information they need to know.
7. Privacy policy
This a document that discloses what type of information you collect from customers. It details how you use it, when you use it, share, or dispose of it.
8 SMS Marketing Compliance Guidelines
Below are eight(8) regulations businesses need to follow when messaging their customers.
1. Always get consent first:
Whenever you are sending out a message to customers, be sure you have their consent first. Consent here is any verifiable permission to send a contact any text message.
Consent should be explicit – in the form of an express written statement, also known as explicit consent.
Meanwhile, consent can’t be buried in long-page statements to elude customers. It should be clear and simple for customers to know what they are subscribing to.
Here is how you can collect consent from customers
- Allow customers to sign up for your text messaging campaigns through an online form, with the terms of messaging stated clearly.
- Include keyword-based responses to Opt-in, seek help, or stop a subscription.
- Allow customers to sign-up for promotions by signing paper forms.
NB:- Permission is not limited to sending out promotional messages only. You also need consent before sending any conversational and Informational messages to customers.
2. Provide Full Disclosure
When customers provide consent for receiving messages for your brand, you need to provide them with all the information they need about your SMS Communications with them.
You can provide disclosure by letting customers know;
- Who you are, thus, your business name and address
- The type of messages they will be receiving from your brand
- The messaging frequency
- Your messaging data and rates (if its a two-way messaging)
- The terms and conditions of your business
- The privacy policy of your business
- Any opt-out instructions for how they can exit your list
3. Avoid SHAFT Messages
Complying to sms regulations also applies to the content of your message. According to the CTIA, messages to customers should be devoid of Sex, Hate, Alcohol, Firearms, and Tobacco content.
Including any of these topics in your messages violates the CTIA Act and may result in a ban.
4. Dont Disrupt During Quiet Hours
There are certain time frames when businesses are not allowed to send promotional messages to customers. This time frame is mostly called “Quiet hours”.
Sending promotional messages before 8:00 AM and 9: 00 PM (local times) violates customers’ quiet hours.
5. Add Terms and Conditions
Customers tend to forget that they signed up for your text messaging service. However, you can remind them by sharing with them the terms and conditions of your service and thus letting them know you are compliant.
Also, should your terms and conditions change, inform customers immediately.
6. Do not Message Opt-out
Messaging contacts who have opted out of your sms service is a direct violation of the sms of law and can result in fines or bans.
7. Sender ID should include your Business Name
For transparency purposes, your sender ID should be a name that your customers can easily recognize.
8. Allow contacts to easily opt-out
Always make the process for opting out from text message promotions easy, and simple for your audience.
A simple reply to this message with “STOP” means you are being compliant with your messages.
Wrapping up: Choosing a reliable SMS Compliance Partner
Being compliant with your SMS campaigns means you are adhering to regulations and protecting the privacy of your customers. At the end of the day, compliance is not so difficult to grasp.
Be sure you have written consent for your audience to opt-in, monitor messaging content and frequency, avoid prohibited language, and provide clear opt-out instructions.
It is also a good idea to work with a trusted SMS service provider like NALO Solutions Ltd., which can provide guidance and support for compliance issues. This can help you avoid lengthy legal proceedings whiles building trust with your customers.
Disclaimer: This document is for informational purposes and not a legal advice. Brands must work with their legal teams to determine what is required from them.
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