When the TRACED Act went live in December of 2019, the process of sending text messages from a business to a consumer was forever changed and continues to change. This article will help you navigate the world of SMS/text messaging using industry best practices.
First, please note that in order to send text messages from your FreedomSoft phone numbers, you will first need to register your business with the US-based phone carriers. See THIS ARTICLE for details on getting registered to send outbound SMS/text messages.
Once your business registration has been approved, follow the best practices listed below to send SMS/text messages from your FreedomSoft phone numbers.
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SUMMARY OF SMS/TEXT COMPLIANCE & WHY IT EXISTS
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In a nutshell, these regulations have been put in place, "to ensure that people (your leads and customers) do not receive SMS communications that they do not want to receive. Put another way, people should only receive SMS communications they want to receive from businesses or organizations."
These regulations are specific to the scenario in which a business is communicating via SMS/text message with a lead/customer. This is why these best practices are not applied to your personal cell phone usage.
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OPT-IN / CONSENT REQUIREMENTS
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Once your business registration has been approved by the carriers, you can then begin to communicate to your "opted-in" leads/customers using SMS/text messaging.
Follow the guidelines below to learn what the carriers consider to be acceptable forms of opt-in:
- Manually filling out a web form that has clear opt-in language on the form.
- Here is the required language that must be present on the web form: "By submitting, you authorize (insert your company name) to send text messages with offers & other information, possibly using automated technology, to the number you provided. Message frequency will vary and message/data rates apply. Use is subject to terms."
- The web form will also need to contain a link to your terms.
- Verbally agreeing to opt in (which must be recorded).
- Here is the verbal script that must be recorded: "As part of our service we at (insert your company name) can send you periodic text messages with offers or other information.
Message and data rates may apply, depending on your mobile phone service plan.
At any time you can get more help by replying HELP to these texts, or you can opt-out completely by replying STOP.
Terms of Service and our Privacy Statement can be found at (your website).
Please reply with 'yes' or 'no' to indicate if you would like this service." - A 2nd option for verbal opt-in is to instruct your leads/customers to text in a keyword. See the third option listed below.
- Here is the verbal script that must be recorded: "As part of our service we at (insert your company name) can send you periodic text messages with offers or other information.
- Texting a specific word to a designated number.
- For example, you might instruct leads/customers to text the word "Sell" to xxx-xxx-xxxx. When the lead/customer follows this instruction, they are now opted in.
Make sure to follow this opt-in process listed above with 100% of the leads/customers that your business communicates with via text as the phone carriers are now tracking every outbound SMS/text message that your company sends.
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OPT-OUT TEXT MESSAGE REQUIREMENTS
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An opt-out SMS is a text message a customer sends to tell a business they no longer want to receive promotional messages.
Businesses have a legal obligation to tell customers how to opt out of promotional messages when they first subscribe to an SMS list.
For example, your welcome message (i.e. the first message you send to a lead/customer) needs to include “Reply STOP to unsubscribe.”
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IDENTIFYING YOURSELF AS THE SENDER
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Every 1st message you send to a new lead/customer must clearly identify you (the party that obtained the opt-in from the recipient) as the sender, except in follow-up messages of an ongoing conversation.
This is easily accomplished by adding verbiage like, "My name is ________ with [Company Name]" to the first SMS/text message that you send to an opted-in lead/customer.
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FORBIDDEN SMS / TEXT MESSAGE CATEGORIES
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There are multiple categories that cannot be discussed via SMS/text message. These categories have been listed below.
- High Risk Financial Services
- Payday loans
- New loan soliciting
- Student loans
- Stocks and investing platforms
- Third party loans
- Short term high interest loans
- 3rd Party Lead Gen & Marketing
- Companies or political campaigns that sell or share consumer information
- Affiliate lending
- Affiliate marketing
- Deceptive marketing
- Debt Collection or Forgiveness
- 3rd party debt collection
- Debt consolidation
- Debt reduction
- Debt relief
- Credit/debt repair
- Get Rich Quick
- Deceptive work from home programs
- Risk investment opportunities
- Pyramid schemes
- Mystery shopping
- Multi Level Marketing
- Illegal Substances
- Cannabis
- CBD
- Paraphernalia products
- Vape products
- Fireworks
- Prescription Drugs
- Gambling
- Casino apps
- Gambling websites
- Sweepstakes
- Raffles
- Conests
- Sports betting
- S.H.A.F.T. Related Topics
- Sexual content
- Hate
- Alcohol
- Firearms
- Tobacco
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PROHIBITED KEYWORDS & PHRASES
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FreedomSoft has compiled a list of keywords that the US carrier filters are targeting. Because of this, FreedomSoft will not allow you to send these words and/or phrases in an outbound SMS/text message. This will help you get more of your messages delivered.
To see the complete list of keywords and phrases, please see THIS ARTICLE.
(Note - FreedomSoft and FreedomSoft employees are not legal experts on the topic of SMS/text messaging. What you see above are best practices that the FreedomSoft team has compiled from leading industry sources on this topic. Also, please note that best practices are subject to change at any time without warning and may not be reflected in this article.)