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What Is the TCPA and Why It Matters for Your Business

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Q: What is the TCPA?

A: The Telephone Consumer Protection Act (TCPA) is a federal US law that restricts unwanted calls, texts, and faxes to consumers. The TCPA came into effect in 1991 and was strengthened with the TRACED Act in 2019. The TCPA outlines the rules and regulations for business-related calling to protect consumer privacy.

Financial Risks of Non-Compliance

Summary:  The financial repercussions of non-compliance with the TCPA are staggering, including fines, per-violation penalties, and class action opportunities. 

A business can face fines of $500 per violation, or $1,500 for willful violations of the TCPA. Additionally, violations of the National Do Not Call Registry will yield extra fines of more than $43,000 per call. These figures only serve to demonstrate the necessity for robust compliance programs.

 
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Who Needs to Follow TCPA Regulations?

Any business that conducts telephone outreach (calls, texts, faxes or VoIP) must abide by the TCPA. No matter whether the outreach is performed by an internal team or outsourced to a vendor, the TCPA is relevant. Significantly, businesses can be vicariously liable for any violations committed by a third party acting on their behalf. This means you and your contact strategy must take TCPA compliance into consideration.

TCPA Compliance Requirements: What You Need to Know

Businesses are required to follow strict operational procedures to remain compliant. For example, businesses may only call between 8 a.m. and 9 p.m. (recipient’s time), businesses must keep an internal DNC list, and businesses must comply with the National DNC registry. Violations can occur without any outbound campaigns at all. A violation can occur if your business is responding to leads using an automated technology or pre-recorded messages and calls the consumer without consent.

Consent and Technology Restrictions

A critical component of the TCPA is how businesses use technology. The law restricts autodialed marketing communications to mobile devices unless the consumer has provided prior express written consent, which is essential under new telemarketing consent laws. Robocalls to landlines are also restricted under similar terms. Any deviation, intentional or not, can lead to serious compliance issues.

Identification and Disclosure Rules

The TCPA requires transparency. At a minimum, all calls must include the caller’s name, the entity on whose behalf the call is made, and a contact method (e.g., phone number or mailing address). This information must be disclosed at the beginning of the call to avoid confusion and support TCPA compliance. Additional requirements, such as obtaining prior express written consent for certain types of calls, may also apply depending on the context.

Importance of the National DNC Registry

Businesses must regularly scrub their call lists against the National DNC Registry. Additionally, several states have their own do-not-call lists with separate compliance mandates. Failure to adhere to both federal and state DNC requirements can compound legal exposure and result in multiple TCPA violations.

Enforcement: Who’s Watching?

TCPA enforcement is twofold: regulatory and private. Federal bodies such as the FCC and FTC have the authority to investigate and fine violators. However, what makes TCPA litigation uniquely risky is its private right of action. Consumers can file individual lawsuits or join class actions—often resulting in multi-million-dollar settlements.

Top TCPA Compliance Risks

TCPA compliance isn’t just about good intentions. Risks include calling reassigned numbers (since consent is tied to the consumer, not the phone number), relying on inaccurate lead data, and failing to implement proper suppression protocols. Even executives can face personal liability in certain cases.

Why TCPA Violations Are So Expensive

Q: Why are TCPA violations so expensive?

A: Four legal features make TCPA cases financially risky:

  • Strict liability (no intent required)
  • Uncapped damages
  • Private right of action (including class actions)
  • Per-violation penalties

These factors have led to an increase in litigation from both regulators and private plaintiffs. 

State-Level Telemarketing Laws: The Overlooked Danger

In addition to the TCPA, many states have implemented their own consumer protection laws for telemarketing. These laws can include their own call time windows, consent requirements, and penalties. Compliance with federal law alone is not enough; companies must develop strategies that accommodate each state’s regulations.

Choosing the Right TCPA-Compliant Partner

Effective TCPA selection means more than avoiding risk—it means finding a partner who proactively protects your brand. At Pixel Bloom Solution , we guide clients through compliant campaign design, consent management, and data integrity to reduce exposure and ensure every outreach effort is aligned with the law.

How Pixel Bloom Solution Supports TCPA Compliance

At Pixel Bloom Solution , we take compliance seriously. Our systems are designed to help clients meet TCPA compliance requirements through secure technology, robust consent tracking, and data validation. We also support DNC list suppression and provide guidance on compliance with state-specific regulations. Our SOC 2 and PCI-DSS certifications reflect our commitment to operating with integrity and security.

Conclusion

The TCPA presents real challenges—but also real opportunities. Businesses that proactively address compliance through best practices and strategic TCPA selection can build consumer trust, avoid costly litigation, and maintain a competitive edge. At Pixel Bloom Solution , we help make that possible.