Hunton Retail Law Resource

Businesses of all kinds increasingly rely on text messages and promotional calls to engage customers. While these channels can be highly effective marketing tools, their use can also expose businesses to potential liability under the Telephone Consumer Protection Act (TCPA). Enacted in 1991, the TCPA was designed to restrict telephone solicitations and the use of automated telephone equipment. Notably, the TCPA provides for the recovery of statutory damages, meaning that each violation (that is, each text message or call) gives rise to potential statutory damages of $500 to $1500. Recent years have seen a dramatic increase in TCPA litigation, costing businesses a pretty penny. For retailers seeking to mitigate litigation risk and costly settlements, we have compiled some practical guidance on TCPA compliance to help head off future claims.