Warning: Auto-Texting Missed Calls Could Cost Your Business Big
It’s been reported that small- and medium-sized businesses miss over one-third of incoming calls, and for some businesses it seems to make sense to automatically text customers back when they leave a voicemail.
While 91% of consumers welcome business texts, and 65% prefer texting over calls, by no means does this give businesses a license to begin firing off text messages to customers and prospects at will. Auto-reply texts from your business to unwitting customers and prospects may expose your business to complaints, fines, and even lawsuits.
Let’s discuss the implications of this common practice. Then, we’ll suggest a safer way your business can text callers that is just as effective.
A Customer Called. Can’t We Text Them Back?
In short, no, you can’t unless you have express permission from the customer to reach out to them by text for the purposes you intend. According to the Telephone Consumer Protection Act (TCPA), having consent for one form of communication and purpose does not necessarily assume consent for all forms of communication and purposes.
Introduced in 1991, the TCPA, overseen by the Federal Communications Commission (FCC), limits how telemarketers reach consumers via phone, fax, and text. Businesses seeking to communicate with customers must first obtain explicit consent from users or risk facing large fines. These fines range from $500 to $1,500, but can increase to as much as $10,000 if the violation is continuous and willful..
This was the case for Domino’s Pizza, which was sued for violating TCPA in 2010. Domino’s sent unsolicited texts to customers without their consent from 2006 to 2010 and was forced to pay nearly $10 million in a class action.
If Others Are Doing It, Why Shouldn’t We?
It can be confusing for businesses when services like Podium and TekMatix allow automatic texts to be sent when a call is missed. In legal terms, this practice is known as the “missed call equals consent” theory. However, cases like Bais Yaakov of Spring Valley v. ACT Inc. offer legal clarity for businesses.
ACT Inc., which administers the ACT college admissions test to high schools, sent three unsolicited faxes, deemed advertisements, to Bais Yaakov of Spring Valley, a private high school in Monsey, New York, in 2012. ACT considered a request form completed in 2005 as permission to send “unlawfully faxed advertisements.”
ACT was found to have violated the TCPA, and was required to pay a penalty of $45,600. Though this case revolves around unsolicited faxes, the legal principle is the same. Assumed consent is not the same as explicit consent. If you have express consent to call customers, you must obtain additional consent if you wish to reach out to them through other methods, such as fax, text or email.
While certain providers offer missed call auto-texting, when you read the fine print of their Terms of Use, you often find language indicating that, while they offer the feature, they cannot be held liable should your business get fined or sued for using it.
A Safer Way to Move Voice Conversations to Text
As mentioned, the TCPA in the U.S. has strict regulations on how businesses can obtain permission to text. So, rolling the dice with services that rely on the “missed call equals consent” theory could end up hurting your business’s reputation and costing it thousands of dollars. Instead, HostMy’s Voice Initiated Messaging (VIM) is a safe, legal alternative that puts the customer in control.
Using VIM, customers may opt to begin a text conversation with your business rather than leave a voicemail and wait for a call back. Text message permissions are recorded and tracked, creating a complete audit trail sufficient for regulatory compliance.
With HostMy’s VIM solution, texts are never sent automatically in response to a missed call. Instead, businesses benefit from:
• Proof of opt-ins for every message.
• Solid documentation for audits and legal protection.
• Customers who feel empowered to choose their communication channel.
• Alignment with both TCPA rules and customer expectations.
VIM eliminates ambiguity and reduces potential legal exposure for your business. To learn more about HostMy’s Voice Initiated Messaging, visit: https://www.hostmy.com/voice-initiated-messaging