Disclaimer
This article provides general guidelines for understanding the legal risks of importing contact lists for SMS marketing. It does not constitute legal advice. Laws and regulations may vary by jurisdiction, and individual circumstances can affect legal obligations. If you have specific questions or concerns, you should consult qualified legal counsel.
Overview
Importing contact lists from other business locations, purchased sources, or partner businesses for SMS marketing can expose your business to significant legal risks. The core issue is using contact information without obtaining direct, explicit consent from the individuals for marketing purposes at your specific business or location.
This article explains the legal liabilities involved and provides actionable guidelines to help businesses protect themselves.
Why Consent Matters
Most privacy and marketing laws worldwide—such as the Telephone Consumer Protection Act (TCPA) in the United States, General Data Protection Regulation (GDPR) in Europe, and Canada’s Anti-Spam Legislation (CASL)—require that businesses obtain clear, affirmative consent from individuals before sending them marketing communications, including SMS messages.
Key points:
- Consent must be specific to the business or entity sending the messages.
- Consent cannot be assumed or transferred simply because a contact was collected by another business or location.
- Using lists from third parties, even if purchased or obtained from a partner, does not guarantee that consent is valid for your business’s marketing.
Best Practices and Solutions
1. Obtain Fresh Consent
- Before sending any SMS marketing, reach out to contacts and request explicit consent for your business.
- Use a clear, simple opt-in process (e.g., reply “YES” to receive messages).
2. Audit Consent Records
- Only use contacts where you can prove consent was given directly to your business.
- Maintain detailed records of when, how, and for what purpose consent was obtained.
3. Avoid Purchased or Third-Party Lists
- Do not use purchased or shared lists for SMS marketing unless you have verified, documented consent for your specific use.
4. Provide Easy Opt-Out
- Every SMS marketing message should include a simple way for recipients to opt out (e.g., “Reply STOP to unsubscribe”).
Additional suggestions for Multi-Location Businesses
For businesses with multiple locations, like the client closing one site and moving contacts to the other site, consider these additional suggestions:
- Segment Contacts by Location: Use CRM tools to tag contacts by their original location and track consent status. This prevents accidental messaging from a new location without re-obtained consent.
- Communicate the Transition: Notify customers of the location closure via email or SMS (if previously consented) and invite them to opt in for messages from the new location. For example: “Our [Old Location] is closing, but we’d love to stay in touch! Text YES to [Number] to receive updates from [New Location].”
- Avoid Assumptions of Consent Transfer: Treat the new location as a distinct entity requiring fresh consent, even within the same brand.