A Complete Guide to SMS Marketing Compliance: Rules, Regulations, and Best Practices
SMS marketing is an effective way to engage customers, offering higher open rates than email and a more direct communication channel than phone calls. However, like any marketing strategy, it comes with strict guidelines, rules, and regulations that businesses must follow.
Before sending any SMS—whether it’s a promotional offer or an appointment reminder—it’s essential to understand the regulations around prohibited content. These guidelines, outlined by the Cellular Telecommunications and Internet Association (CTIA), help ensure a positive user experience and compliance with legal standards.
SMS Compliance Best Practices
The CTIA’s Short Code Monitoring Handbook emphasizes that all SMS content must:
Adhere to federal and state laws
Implement age-gating for controlled substances and adult content
Follow CTIA guidelines to prevent unwanted messages
Be sent only to recipients who have opted in
Meet all other compliance standards outlined by the CTIA
Let’s explore these requirements in detail.
Avoid Unwanted Messages
SMS marketing is powerful because of its immediacy and high engagement. However, it’s crucial to avoid overwhelming customers with excessive or unsolicited messages.
The CTIA defines Unwanted Messages as:
Spam (unsolicited bulk commercial messages)
Phishing messages seeking private information
Abusive, harmful, or misleading messages
Messages sent without proper opt-in consent
To maintain compliance: ✔ Only send marketing messages to customers who have explicitly opted in ✔ Avoid excessive messaging that could be perceived as intrusive ✔ Provide clear opt-out instructions in every message
Prohibited Content: SHAFT & More
Certain content is strictly prohibited in SMS marketing, primarily regulated under the CTIA’s SHAFT guidelines:
Sexually Explicit Content
SMS messages cannot contain sexually explicit material, adult content, or inappropriate language.
Hate Speech
Messages promoting hate speech, discrimination, or profanity are strictly banned.
Alcohol Marketing
Alcohol-related messages require proper age verification. Customers must manually input their date of birth—not simply confirm with a “Yes” or “No.” Until age verification is completed, avoid using words like "alcohol," "wine," or "liquor."
Firearms
References to firearms, firearm accessories, or any form of weapon-related promotions are strictly prohibited.
Tobacco & Vaping
Like alcohol, tobacco-related SMS marketing requires robust age verification. All mentions of tobacco, vaping, or related products must follow strict age-gating protocols.
Gambling
Despite being legal in many states, gambling-related promotions are restricted by mobile carriers due to moral and ethical concerns.
Cannabis & CBD
Cannabis marketing remains a gray area due to varying state laws. Because mobile carriers cannot filter recipients by location, most prohibit SMS content mentioning cannabis, marijuana, or even CBD.
Other Restricted Topics
Beyond SHAFT guidelines, additional restrictions apply to:
High-risk financial services
Debt collection messages
Multi-level marketing (MLM) and get-rich-quick schemes
Third-party lead generation services
To ensure compliance, refer to the latest CTIA Short Code Monitoring Handbook for a full list of restricted content.
Ensure Lawful and Ethical Messaging
To maintain credibility and compliance, businesses must avoid sending messages that:
Are misleading, deceptive, or fraudulent
Contain excessive violence or obscene language
Violate privacy laws or create security risks
Include malware, intimidation, or harmful content
SMS marketing should build trust, not jeopardize consumer confidence. Follow FTC Truth-in-Advertising rules by ensuring all promotions are factual, transparent, and legally sound.
Age-Gating for Controlled Substances & Adult Content
If your business sells alcohol, tobacco, or other controlled substances, you can still use SMS marketing—provided you implement age verification.
How to Implement Age-Gating
Use a manual date-of-birth entry (not a simple Yes/No question)
Restrict message delivery to verified recipients
Set up compliance measures at the opt-in stage
For example, if you run a brewery and want to promote a new craft beer, you must first confirm that recipients are over 21 before sending promotional messages.
Running Sweepstakes & Contests via SMS
Contests and sweepstakes are great for growing your SMS subscriber list, but they come with added compliance measures. Because sweepstakes involve an element of chance, they can be mistaken for gambling, a prohibited SMS topic.
Best Practices for SMS Sweepstakes
✔ Follow your wireless provider’s rules ✔ Submit sweepstakes terms for provider review ✔ Offer a free method of entry to avoid legal complications
Before launching an SMS-based contest, consult legal experts to ensure compliance with state and federal regulations.
FTC Truth-in-Advertising Compliance
The Federal Trade Commission (FTC) enforces transparency in marketing, including SMS campaigns. Failure to comply can result in hefty fines.
Best Practices for FTC Compliance
Avoid misleading claims: If promoting a health or food product, back up claims with research
Be transparent: Clearly disclose partnerships and sponsorships
Ensure honest testimonials: Don’t alter customer feedback to mislead potential buyers
Disclose paid endorsements: If influencers promote your product via SMS, ensure they disclose sponsorships
Staying compliant with FTC advertising rules protects your business from legal issues and builds consumer trust.
Final Thoughts
SMS marketing is a powerful tool for customer engagement, but compliance is critical. By following CTIA guidelines, respecting SHAFT restrictions, and adhering to FTC truth-in-advertising principles, businesses can leverage SMS marketing effectively while maintaining legal and ethical integrity.
For ongoing compliance updates, always refer to the latest CTIA Short Code Monitoring Handbook and consult legal experts when necessary.