Are Small Companies Exempt from the TCPA?

Type: Blog
Topic: Do Not Call Solution

No, small businesses are not exempt from the Telephone Consumer Protection Act (TCPA). The TCPA applies to all businesses—regardless of size—if they engage in telemarketing, automated calls, text messaging, or fax marketing. This means that even if you’re a small company, you must follow the law’s strict consent and Do Not Call (DNC) requirements.

Businesses must obtain explicit permission before contacting consumers, making compliance more critical than ever. Non-compliance can result in steep penalties, including fines of up to $1,500 per violation. Small businesses cannot afford to overlook these regulations.

PossibleNOW’s Do Not Call solution helps businesses scrub contact lists against federal and state DNC registries, track consent records, and mitigate risk—so you can focus on growing your business while staying compliant.

Key TCPA Compliance Requirements

To legally contact consumers via phone, text, or fax, businesses must adhere to these core TCPA rules:

• Prior express written consent is required for calls or texts that use an auto-dialer or pre-recorded message.
• Calls to numbers on the National DNC Registry are prohibited unless explicit consent is obtained.
• Calling time restrictions apply—businesses can only contact consumers between 8 AM and 9 PM (local time).
• Businesses must honor opt-out requests immediately and maintain an internal DNC list.
• The new TCPA rule (effective 2025) mandates that lead generators and businesses obtain one-to-one consent before sharing consumer contact details.

Are There Any Exemptions for Small Businesses?

While some organizations—such as nonprofits and political groups—have limited exemptions, small businesses do not. The size of your business does not impact TCPA compliance. If your company places sales calls, sends promotional texts, or engages in telemarketing, you must follow TCPA rules.

A common misconception is that businesses with an “established business relationship” (EBR) with a consumer can bypass these regulations. However, EBR only applies in certain cases, and consent requirements still stand. Relying on outdated exemptions can expose your business to lawsuits and fines.

What Happens If a Small Business Violates the TCPA?

TCPA violations can be extremely costly, even for small companies. Penalties include:

• $500 per violation for calls, texts, or faxes that fail to comply with TCPA rules.
• Up to $1,500 per call for willful violations.
• Class-action lawsuits that can potentially result in multi-million-dollar settlements.

Even unintentional violations can lead to legal action. With TCPA litigation on the rise, businesses need a reliable compliance strategy to avoid costly mistakes.

How to Keep Your Business Compliant With the TCPA

Avoiding TCPA violations starts with proactive compliance measures:

• Use a reliable compliance platform to track DNC registries, manage opt-outs, and store consent records.
• Scrub call lists regularly against the National DNC Registry and state-specific lists.
• Document all consumer consents, including timestamps and opt-in methods.
• Train employees on TCPA requirements and update policies as regulations evolve.

With stricter enforcement and evolving rules, having the right tools and expertise is crucial. PossibleNOW’s DNCSolution helps businesses of all sizes maintain compliance, minimize risk, and confidently engage with customers. Don’t wait until a lawsuit puts your business at risk—take control of your TCPA compliance today.

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.