Understanding SMS Marketing Compliance: Rules, Guidelines, and Best Practices
SMS marketing may feel like a more informal way to engage with customers compared to email or phone calls, but it remains a regulated marketing channel with strict rules and guidelines. Just like any other form of marketing, it requires adherence to industry standards to ensure compliance and maintain consumer trust.
Before sending any text messages—whether promotional or simply appointment reminders—it’s crucial to understand the rules regarding prohibited content. The Cellular Telecommunications and Internet Association (CTIA) sets specific standards, outlining banned topics, words, and themes that should not be included in SMS marketing campaigns.
Key SMS Marketing Guidelines
The CTIA’s Short Code Monitoring Handbook emphasizes that all SMS content should create a positive user experience. Whether using short codes or long codes, your SMS campaigns should adhere to these principles:
Comply with all applicable laws and regulations.
Implement age-gating for content related to controlled substances or adult themes.
Follow CTIA guidelines on unwanted messaging.
Obtain explicit opt-in consent before sending messages.
Meet all CTIA Handbook standards.
Now, let’s break these down in more detail.
Preventing Unwanted Messages
SMS is a powerful communication tool with high open rates and fast delivery. However, its ease of use can lead to over-messaging, which the CTIA aims to prevent through strict Unwanted Messaging regulations. According to the CTIA’s Message Principles and Best Practices, unwanted messages include:
Spam: Unsolicited bulk commercial messages.
Phishing: Messages that attempt to steal private or confidential information.
Malicious Content: Any form of abusive, harmful, or unlawful messaging.
Unauthorized Messaging: Messages requiring opt-in consent that were sent without proper consent.
To stay compliant, businesses must be mindful of the frequency of their marketing messages and ensure that recipients have explicitly opted in to receive them.
Prohibited Content: SHAFT and Beyond
Certain topics are strictly prohibited in SMS marketing, commonly categorized under SHAFT:
Sex: Explicit or adult-themed content is not allowed.
Hate: Messages containing hate speech, discriminatory language, or profanities are banned.
Alcohol: SMS campaigns promoting alcohol must include robust age-gating, requiring consumers to manually enter their date of birth (yes/no questions are insufficient). Avoid terms like “alcohol,” “wine,” or “liquor” until the recipient’s age is verified.
Firearms: Any discussion of firearms, accessories, or violent imagery is prohibited.
Tobacco: SMS content regarding tobacco or vaping products must include proper age verification before sending.
Additional Restricted Topics
Beyond SHAFT, mobile carriers also restrict:
Gambling: Although legal in some states, gambling-related content is generally prohibited.
Cannabis: Due to varying state laws and the inability to filter recipients by location, most carriers prohibit cannabis-related messages, including CBD promotions.
High-Risk Financial Services: Content related to payday loans, cryptocurrency schemes, or high-risk lending is often restricted.
Debt Collection: Many carriers prohibit SMS campaigns focused on debt collection.
MLMs and Get-Rich-Quick Schemes: Multi-level marketing content and deceptive business opportunities are banned.
Third-Party Lead Generation: Many carriers prohibit messages that promote the sale or distribution of third-party consumer data.
For a full breakdown of restricted content, consult the CTIA’s Handbook.
Avoiding Unlawful or Fraudulent Content
In addition to content restrictions, businesses must ensure their SMS campaigns do not contain any fraudulent, misleading, or illicit material. Prohibited messaging includes:
Harmful, abusive, or misleading content.
Excessively violent, obscene, or defamatory messages.
Deceptive claims or messages intended to mislead recipients.
Messages that invade privacy or cause safety concerns.
Threatening or intimidating content.
Messages containing malware or other harmful software.
Maintaining transparency and honesty in SMS marketing helps build consumer trust and ensures compliance with the Federal Trade Commission’s (FTC) Truth-In-Advertising Rules.
Age-Gating for Controlled Substances & Adult Content
If your business involves alcohol, tobacco, or other controlled substances, compliance requires implementing age verification before sending marketing messages. Consumers must manually enter their date of birth (not just answer “yes” or “no”) to confirm their eligibility.
For example, a brewery launching a new product via SMS must confirm that recipients are 21+ before sending promotional messages. Age verification should occur during the opt-in process to ensure compliance from the start.
Sweepstakes & Contests: Additional Considerations
Running an SMS-based sweepstake or contest? While these can be great for growing your subscriber list, they come with additional legal considerations due to their resemblance to gambling. To ensure compliance:
Follow your Wireless Provider’s sweepstake guidelines.
Provide Wireless Providers with the official contest rules for review.
Offer a free method of entry to avoid gambling classifications.
FTC Truth-in-Advertising Compliance
The FTC’s Truth-in-Advertising guidelines require that all marketing content be truthful and transparent. Violating these rules can lead to hefty fines and penalties. To stay compliant:
Avoid false claims: Don’t make unverified health or performance claims about products.
Be upfront with consumers: Disclose affiliations when promoting partner products.
Use honest testimonials: Do not take customer reviews out of context or manipulate endorsements.
Disclose paid promotions: Influencers and partners must clearly state when they are being compensated to promote a product.
The bottom line? Be truthful, transparent, and responsible in your SMS marketing to remain compliant with industry and legal standards.
Final Thoughts
SMS marketing is a highly effective tool when used correctly. By following CTIA regulations, FTC advertising laws, and carrier-specific guidelines, businesses can ensure their campaigns are compliant, ethical, and successful. Prioritizing transparency and consumer trust will lead to better engagement, fewer complaints, and long-term success in SMS marketing.