The 2025 Ultimate Guide to SMS Marketing and Why It’s Essential

The SEC intensified its crackdown on off-channel communications, imposing over $600 million in civil penalties on more than 70 firms. Text messaging is one of the most effective ways to reach customers. It’s instant. It’s personal. And it gets read—often within 90 seconds. But with that power comes responsibility. If your business uses SMS to communicate with clients, customers, or leads, you need to play by the rules. And those rules are constantly evolving.

Let’s break down what SMS marketing compliance really means, why it matters now more than ever, and how your business can stay ahead of the curve in 2025.

What is SMS Compliance?

SMS compliance refers to the legal and industry rules that govern how businesses are allowed to send text messages to individuals—whether those individuals are customers, prospects, or leads.

These rules are designed to protect people from unwanted or abusive messaging. And yes, while the regulations can get a bit complex, the core idea is simple: get permission before you text, don’t spam people, and make it easy for them to opt out.

• TCPA (Telephone Consumer Protection Act) – Focuses on getting consent and respecting opt-outs.

• CTIA (Cellular Telecommunications and Internet Association) – Adds carrier-specific messaging rules and best practices.

• CAN-SPAM Act – Usually applied to email, but also relevant for promotional texts.

• HIPAA, FINRA, SEC – Industry-specific rules for healthcare, finance, and other sectors.

Each regulation has its own quirks, but most share a few common goals:

• Stop spam and unwanted messages

• Protect sensitive information

• Give consumers control over who can text them and when

Some laws even require businesses to store message records securely for a set period of time, especially in regulated industries.

And the rules differ depending on the type of message you’re sending—whether it’s promotional, transactional, or conversational.

Why is Text Messaging Compliance Important?

Violating the TCPA can cost your business $500 to $1,500 per text, depending on whether the violation was accidental or intentional. The CAN-SPAM Act adds another layer, with potential fines of up to $16,000 per message.

But SMS compliance isn’t just about avoiding fines.

Failing to follow the rules can hurt your brand’s reputation. Customers want to know their data is safe—and that you respect their boundaries. If you don’t, they won’t hesitate to report you, block your number, or take their business elsewhere.

Non-compliance can also get your number blacklisted by mobile carriers. That means even your legitimate texts might never reach your audience. And once you’re flagged, it’s not easy to fix.

On the flip side, getting compliance right has big benefits:

• You avoid legal risk

• You protect customer trust

• You improve message deliverability

• You’re forced to build smarter, more targeted campaigns

In short, SMS compliance isn’t a roadblock—it’s a smart business strategy.

What Are the Core SMS Regulations?

• TCPA – Telephone Consumer Protection Act

The TCPA is the foundation of SMS compliance in the U.S. It requires that businesses get clear, unambiguous consent before texting consumers. Here's what that means in practice:

• You can’t cold-text people. You must have prior express written consent to send marketing texts.

• Consent must be documented. Whether a customer opts in via a form, reply text, or checkbox, you need a record of it.

• You must honor opt-outs. If someone texts “STOP,” that’s it. You can’t message them again unless they opt back in.

• Respect time zones. Automated texts should only be sent during reasonable hours, typically between 8 AM and 9 PM local time.

In highly regulated sectors like finance or healthcare, you may also need to archive messages for future audits.

• CTIA – Cellular Telecommunications and Internet Association

While not a government body, CTIA sets industry standards that most carriers enforce. Their rules help improve the customer experience and reduce spam complaints.

CTIA guidelines include:

• Clear opt-out instructions (e.g., “Reply STOP to unsubscribe”)

• Proper identification (include your brand name in every message)

• Call-to-action transparency (be clear about what people are signing up for)

Following CTIA best practices can keep your messages from being flagged or filtered by carriers.

• CAN-SPAM Act

Although originally focused on email, the CAN-SPAM Act also applies to SMS marketing messages. Here's what it requires:

• Your “From” name must clearly identify your business

• Subject lines must reflect the content accurately

• Commercial messages must be marked as advertising

• Opt-out requests must be honored within 10 business days

• MMA – Mobile Marketing Association

The MMA adds a layer of ethical best practices, including:

• Getting opt-in confirmation (often called a “double opt-in”)

• Providing contact info in your message (like a support number)

• Respecting the Do Not Call registry

Prohibited Content in SMS Marketing

There are certain things you just can’t say or promote over text, no matter how compliant your message structure is.

The CTIA uses the acronym SHAFT to flag restricted content:

• S: Sexually explicit content

• H: Hate speech or harmful language

• A: Alcohol-related messages (without prior carrier approval and age verification)

• F: Firearms or anything promoting violence

• T: Tobacco, vaping, or illegal substances

But that’s not all.

Carriers may also reject messages about:

• Debt relief or credit repair

• Payday loans or short-term loans

• CBD and cannabis (even if legal in your state)

• Gambling or sweepstakes

Before launching any SMS campaign, it’s best to check with your messaging provider for an up-to-date list of restricted content.

Industry-Specific SMS Compliance: HIPAA, SEC, and More

• Healthcare (HIPAA)

HIPAA requires that you protect patient information. Before sending anything related to appointments, prescriptions, or medical advice, you need explicit patient consent.

Any text containing PHI (protected health information) must be encrypted and stored securely.

• Finance (SEC, FINRA, GLBA)

Financial firms must archive client communications—yes, even text messages—for a set number of years. FINRA and the SEC both monitor this.

Make sure you’re using a messaging platform that supports message archiving and secure access logs.

• Real Estate and Housing (FHA)

Fair housing rules also apply to SMS. That means you can’t use discriminatory language in texts about housing, loans, or rental applications.

Technicalities of SMS Marketing Compliance

You also need to know the type of message you’re sending. There are three primary categories:

• Promotional: Sales offers, discounts, events, etc.

• Transactional: Appointment reminders, shipping updates, receipts.

• Conversational: Back-and-forth messages between a business and customer.

Each has different compliance requirements. Promotional texts require opt-in consent, while transactional messages may be allowed under implied consent—but only if they’re related to a prior customer relationship.

If you're using 10DLC (10-digit long codes) for mass texting, you must register your brand and campaign with The Campaign Registry (TCR). It’s a bit of paperwork, but it helps ensure higher deliverability and better trust from carriers and customers.

Best Practices for Text Messaging Compliance for Your Business

• Register Your Business Texting Number

Before you send your first message, make sure your texting number is properly registered. Whether you’re using:

• A short code (a 5-6 digit number ideal for high-volume messages),

• A toll-free number, or

• A 10-digit long code (10DLC) (great for local, conversational outreach),

…your number must be registered with your messaging provider.

For 10DLC numbers, registration must go through The Campaign Registry (TCR). This includes:

• Submitting your brand information

• Describing your campaign purpose

• Getting approval for the type of content you’ll be sending

Carriers use TCR data to decide whether to deliver your texts—or flag you as spam. Registered numbers also enjoy higher deliverability rates, fewer filtering issues, and stronger credibility with recipients.

Even if you're using a third-party SMS platform, don’t assume they’ve registered everything for you. Double-check with your provider.

• Collect Consent from Contacts

The single most important part of SMS compliance? Permission.

You must get clear, affirmative consent from each person before texting them. This could be:

• A checkbox on a form (not pre-checked!)

• A keyword reply (like texting “JOIN” to a short code)

• A verbal agreement recorded in a CRM or support log

Keep a record of when and how consent was given. If you're ever audited or face a complaint, you’ll need to show proof.

To go a step further, use a double opt-in process:

1. A customer opts in via your form or keyword

2. You send a confirmation text asking them to reply “YES” to verify

Double opt-in reduces the chances of accidental subscriptions and improves list quality—people who confirm are more likely to stay engaged.

• Manage the Opt-Out Process

Make it easy to unsubscribe. Every message should include opt-out instructions like “Reply STOP to unsubscribe.” Once someone opts out, stop texting immediately—no exceptions.

• Master Messaging Timing and Frequency

Avoid bombarding your audience. Stick to reasonable hours (8 AM – 9 PM) and limit promotional messages to 2-4 per month, unless users have opted into more.

Watch time zones if you're texting nationwide. A 9 AM text in New York is a 6 AM wake-up call in Los Angeles.

• Stay Up-to-Date with SMS Compliance

Regulations are not static. What was compliant last year may no longer be today.

Make it a point to review your SMS strategy every quarter, and stay in touch with:

• FCC updates (they enforce TCPA and other federal regulations)

• CTIA guidelines (industry standards that carriers enforce)

• Your SMS provider’s compliance center or blog

SMS compliance also affects different industries in unique ways. If you're in healthcare, finance, or real estate, subscribe to sector-specific updates. New privacy laws and court rulings can change what you’re allowed to say—or how you store message data.

Finally, train your team. Everyone who writes, schedules, or sends texts should understand the compliance basics. Make it part of your onboarding and ongoing training. A small mistake from one employee could cost your company thousands.

Compliance Is a Competitive Advantage

SMS isn’t going anywhere. In fact, with open rates topping 90% and consumer expectations rising, business texting is becoming the norm—not the exception.

But with power comes responsibility.

Staying on top of SMS compliance isn’t just about avoiding lawsuits or keeping the FCC off your back. It’s about building trust. Respecting your audience. And running your business with integrity.

At the end of the day, compliance is part of your brand. It tells your customers: We take your privacy seriously. We won’t spam you. And we’re here to communicate with you the right way. Want help setting up your SMS marketing strategy? Contact our team and let us make sure your messages are always delivered — with confidence!