Everything You Need to Know About Text Marketing Laws and Regulations

Text marketing is a game-changer for direct sellers. With a 98% open rate, SMS marketing allows you to reach your audience faster and more effectively than email or social media. But before you start blasting messages to every customer you've ever met, there’s something critical you need to know:

Text marketing is regulated by law. 😧

Many direct sellers unknowingly violate text marketing laws, putting themselves and their businesses at risk. If you’ve ever uploaded your entire contact list and sent marketing messages without asking for permission, this post is for you.

Let’s break down everything you need to know—without the fear factor. Because when we know better, we do better.

Understanding Text Marketing Laws (Without the Legal Jargon)

The main law governing text marketing in the U.S. is the Telephone Consumer Protection Act (TCPA). This law was created to protect consumers from spam calls and messages. It’s enforced by the Federal Communications Commission (FCC) and applies to all businesses, including direct sellers.

Here’s what the TCPA means for you:

• You must get permission (opt-in) before sending marketing texts.
• You must disclose who you are and how often you’ll text.
• You must allow recipients to opt-out easily.
• You can only text within legal business hours (8 AM - 9 PM in the recipient’s time zone).

Failing to follow these rules can lead to lawsuits, hefty fines, and even being banned from text marketing platforms. But don’t panic—following the rules is easier than you think!

The Difference Between Marketing and Transactional Messages

Not all text messages are created equal. The law distinguishes between marketing and transactional messages, and the rules differ for each.

Marketing Messages (Require Opt-In)

Marketing messages are those that promote a product, service, sale, or business opportunity. If you send a message with the intent to generate a sale, booking, or recruit, it falls under marketing and requires explicit written consent from the recipient before texting them.

For example, if you send a text like:

"Hey [Name], our new collection just dropped! Click here to shop now. [Link]"

Or...

"You're not gonna want to miss this month's hostess special! Reply YES for more details."

These messages require opt-in consent before you can send them.

Transactional Messages (Do NOT Require Opt-In)

Transactional messages, on the other hand, provide important information about an existing order, appointment, or customer relationship. Since these messages are not promotional, they do not require explicit consent—but they must still include an opt-out option.

For example:

"Thanks for your order, [Name]! Your package is on the way. I'm a message away if you have any questions or concerns."

Or...

"Your appointment for a consultation is tomorrow at 2 PM. Reply YES to confirm."

However, if you mix a marketing message into a transactional one, it becomes a marketing message and requires opt-in. For example:

❌ “Thanks for your order! By the way, our new collection just launched. Check it out here: [Link].”

Since this message contains a promotional call to action, it is no longer a simple transactional message—it is now a marketing message and requires prior consent.

How to Get Customers to Opt-In (Legally and Easily)

1. Keyword Opt-In (Best for Events & Online Sales)

“Text VIP to 12345 to receive exclusive deals and product updates!”

When they text the keyword, they receive an automatic opt-in confirmation with details on what to expect and how to opt out.

2. Paper Sign-Ups at Events

Have a sign-up sheet at vendor events or parties, clearly stating that they agree to receive texts from you.

3. Customer Surveys

Ask customers if they’d like to opt-in for future deals and updates.

How to Put This Into Action 

• Include your business name in every message. Customers may not have your number saved, so identify yourself every time.
• Always include an opt-out option. Every marketing text should have something like: “Reply STOP to unsubscribe.”
• Respect time zones. Don’t text customers before 8 AM or after 9 PM their time.
• Send messages strategically. Don’t overdo it—aim for 2-4 messages per month unless customers expect more frequent updates.
• Use a text marketing platform that helps with compliance. Platforms like Project Broadcast allow you to manage opt-ins, automate compliance messaging, and segment contacts legally.

Final Thoughts: Do Text Marketing the Right Way!

Text marketing is one of the most powerful tools in your business toolbox and it's not difficult to use it correctly. By getting proper consent, sending compliant messages, and respecting customer preferences, you can grow your business without risk.

Think of it like this, no one wants to be that direct seller who walks into the room and everyone scatters because their thinking, 'Oh no!  Here comes the direct sales consultant!'  Well, don't be THAT consultant in your text messaging either.  Share your marketing messages with those who have said they are interested by opting in to your list.

When you follow the law, customers appreciate it! Instead of annoying people with unwanted messages, you’re building trust and relationships—just like great direct sellers do.  You've got this!

If you’re ready to take text marketing to the next level without breaking the rules, check out my guide on Mastering Text Marketing Regulations!

✉️ Have questions? Drop them in the comments, and let’s chat!