Can Businesses Be Sued for Do Not Call Violations? 

Type: Blog
Topic: Do Not Call Solution

Yes, businesses can be sued for Do Not Call (DNC) violations, and such lawsuits can lead to significant fines and legal repercussions. Non-compliance with the Telephone Consumer Protection Act (TCPA) and Federal Trade Commission (FTC) Do Not Call regulations opens businesses to risks of hefty fines, class-action suits, and reputational damage. For companies conducting outbound marketing or engaging with consumers via calls, texts, or pre-recorded messages, adhering to DNC regulations is essential to avoid legal issues and protect brand integrity. 

PossibleNOW’s Do Not Call compliance solution is designed to streamline DNC compliance across multiple contact channels, reducing the risk of TCPA violations. By integrating advanced tools like list scrubbing, contact monitoring, and real-time compliance checks, DNCSolution ensures your business meets ever-evolving DNC regulations, enabling compliant and customer-friendly communications. 

What Qualifies as a Do Not Call Violation? 

The DNC rules and TCPA regulations are stringent, limiting who businesses can contact, when, and how. According to federal law, a DNC violation occurs when a business makes unsolicited marketing calls or texts to phone numbers listed on the National DNC Registry without the consumer’s express consent. These rules apply to both residential landlines and cell phones.  

Violations can also occur when businesses ignore specific time constraints for making telemarketing calls, typically only permissible between 8 a.m. and 9 p.m. Furthermore, failure to honor a consumer’s request to be placed on an internal DNC list can constitute a violation. 

Businesses must recognize that these regulations don’t only apply to calls but also extend to SMS and other text-based outreach.  

Legal Consequences of Violating Do Not Call Rules 

When businesses violate Do Not Call (DNC) or TCPA regulations, they risk facing serious legal consequences, including costly fines and class-action lawsuits. The TCPA allows individuals to sue businesses that violate its regulations, and penalties range from $500 per call for negligent violations up to $1,500 per call for willful or knowing violations. With large-scale telemarketing campaigns, this can quickly escalate into substantial liabilities, particularly in class-action suits, where many plaintiffs join together to seek compensation for similar grievances. 

Class-Action Lawsuits Over DNC and TCPA Violations 

Class-action lawsuits have become an increasingly common and costly consequence for businesses accused of DNC or TCPA violations. One high-profile case involved a settlement between Capital One and a group of plaintiffs in 2014. The plaintiffs alleged that Capital One violated TCPA regulations by using auto-dialing technology to call consumers without prior consent. This class-action suit resulted in a $75 million settlement, underscoring the massive financial risk businesses can face when they fail to comply with DNC rules. 

Another example is the $32 million settlement reached in 2017 by SiriusXM, where plaintiffs alleged that the company placed unlawful telemarketing calls to consumers.  

Steps to Protect Your Business from DNC Violations 

Here are essential steps every business should consider to maintain compliance with DNC rules: 

1. Automated DNC List Scrubbing: Regularly cross-check contact lists against national and state DNC registries. This process helps prevent calls to restricted numbers and keeps marketing efforts compliant. 

2. Maintain Accurate Records: Keeping detailed records of DNC list scrubs, customer consents, and opt-outs provides a defensible position in case of legal challenges. DNCSolution offers built-in reporting and recordkeeping tools to manage these records efficiently. 

3. Use a Dedicated Compliance Solution: With DNC regulations and TCPA requirements constantly evolving, relying on an automated solution like PossibleNOW’s DNCSolution minimizes the chances of non-compliance. DNCSolution’s tools, such as real-time consent tracking and integration with CRM systems, provide businesses with the necessary checks to make certain that each campaign is compliant from the outset. 

4. Educate Your Team: It’s essential to train all team members involved in outbound marketing on TCPA and DNC regulations. Building internal awareness reduces the likelihood of costly errors and improves compliance. 

PossibleNOW’s DNCSolution simplifies compliance management, helping businesses avoid the pitfalls of Do Not Call violations and costly TCPA fines. Start building trust and safeguarding your business today with our Do Not Call solutions. 

About PossibleNOW

PossibleNOW is the pioneer and leader in customer consent, preference, and regulatory compliance solutions. We leverage our MyPreferences technology, processes, and services to enable relevant, trusted, and compliant customer interactions. Our platform empowers the collection, centralization, and distribution of customer communication consent and preferences across the
enterprise. DNCSolution addresses Do Not Contact regulations such as TCPA, CAN-SPAM and CASL, allowing companies to adhere to DNC requirements, backed by our 100% compliance guarantee.

PossibleNOW’s strategic consultants take a holistic approach, leveraging years of experience when creating strategic roadmaps, planning technology deployments, and designing customer interfaces. PossibleNOW is purpose-built to help large, complex organizations improve customer experiences and loyalty while mitigating compliance risk.