Automotive Dealership SMS Compliance

Automotive TCPA Compliance Framework

Why Automotive Faces Heightened TCPA Risk

Automotive industry has documented history of TCPA class-action litigation. Courts scrutinize dealership consent practices due to aggressive sales tactics, lead generation partnerships, and purchased customer lists. Single consent violation can trigger lawsuits affecting thousands of messages.

Recent Settlements:

• $8.4M settlement (2023) - auto dealer group
• $5.2M settlement (2022) - service reminders
• $3.7M settlement (2021) - lead aggregators

Common Violations:

• Purchased lead lists without verified consent
• Pre-checked consent boxes on web forms
• Single consent for sales + service
• Unclear opt-out mechanisms

Sales Campaign Requirements

Express Written Consent: Affirmative action, not pre-checked boxes
Purpose Disclosure: Clear language about promotional vehicle offers
Opt-Out Method: Reply STOP language in every message
Third-Party Lists: Verified consent transfer documentation required

Service Campaign Requirements

Customer Relationship: Existing service history establishes context
Transactional Content: Service reminders, recall notices, appointment confirmations
Separate Consent: Service notifications distinct from sales promotions
OEM Compliance: Manufacturer recall requirements (NHTSA regulations)

Automotive TCR Use Cases

Vehicle Sales & Promotions

TCR Use Case: Marketing

New inventory alerts, finance offers, trade-in campaigns, model year-end clearance events

Sample: "Honda of [City]: New 2025 Accord now available! 0% APR financing for 60 months. Test drive this weekend. Reply STOP to opt out. [DealerURL]"

Service Reminders

TCR Use Case: Customer Care

Oil change reminders, tire rotation, seasonal maintenance, manufacturer-recommended service intervals

Sample: "Your 2022 Camry is due for 30,000-mile service. Schedule today: [Phone] or [BookingURL]. [Dealer] Service Dept. Reply STOP to opt out."

Recall Notifications

TCR Use Case: Account Notifications

NHTSA-mandated recall alerts, safety campaign notices, manufacturer service bulletins

Sample: "URGENT: Your VIN [XXXXX] has open safety recall. Free repair available. Schedule: [Phone]. NHTSA Campaign #[Number]. [Dealer]"

Appointment Confirmations

TCR Use Case: Delivery Updates

Service appointment confirmations, reminder 24 hours before, vehicle ready for pickup alerts

Sample: "Your service appointment is confirmed for [Date] at [Time]. Estimated completion: [Time]. [Dealer] Service. Reply STOP to opt out."

Trade-In Valuation Offers

TCR Use Case: Mixed Marketing

Trade-in value estimates, equity alerts, upgrade opportunities based on current vehicle age/mileage

Sample: "Your 2019 [Make/Model] trade value: $[Amount]. Current market peak. Explore upgrade: [URL]. [Dealer]. Reply STOP to opt out."

Common Automotive TCR Rejections

❌ Inadequate Consent Documentation

Lead aggregator lists, purchased databases, or web form submissions without clear SMS opt-in language. Pre-checked boxes or bundled consent (finance + SMS) trigger automatic rejection.

Fix: Implement affirmative consent checkboxes. Separate sales consent from service consent. Maintain timestamped consent records with IP addresses. Avoid third-party lists unless verified consent transfer documented.

❌ Mixed Sales/Service Content

Service reminder messages including promotional offers ("Oil change + 10% off brake service"). Single campaign registered as Customer Care containing marketing content.

Fix: Separate campaigns for transactional service vs. promotional sales. Service reminders contain ONLY appointment/maintenance information. Marketing offers use dedicated campaign with explicit sales consent.

❌ Unclear Opt-Out Language

Generic "unsubscribe" links, email-based opt-out methods, or phone call requirements instead of simple STOP keyword reply.

Fix: Every message must include "Reply STOP to opt out" or equivalent. Immediate processing of STOP keyword. Confirmation message sent after opt-out. Alternative: "Text STOP or call [Phone]."

❌ Dealer Group vs. Individual Store Registration

Multi-location dealer groups registering single brand for all stores. Individual dealership names don't match registered legal entity. Franchise vs. corporate ownership confusion.

Fix: Register parent dealer group as brand OR individual dealerships separately based on legal ownership structure. Message sender identification must match TCR-registered entity. Corporate franchises register each location.

3-Tier Automotive Consent Framework

1

Point of Sale / Service Intake

Customer completes vehicle purchase, lease, or first service visit. Dedicated SMS consent checkbox on paperwork or digital intake form.

Compliant Language:
"☐ I consent to receive service reminders and appointment notifications via SMS at the phone number provided. Message frequency varies. Reply STOP to opt out. Standard message rates apply."

2

Website Form Submission

Online inquiry forms, test drive requests, finance applications. SEPARATE checkbox for SMS consent, not bundled with email/contact permission.

Compliant Language:
"☐ Send me promotional offers and new vehicle alerts via text message. By checking this box, I agree to receive marketing texts from [Dealer] at my mobile number. Reply STOP to opt out."

3

Keyword Opt-In (Promotional)

Customer initiates contact by texting keyword to shortcode or 10DLC number. Used for contest entries, special event registration, promotional campaigns.

Compliant Response:
"Welcome to [Dealer] alerts! Msg frequency varies. Reply HELP for help, STOP to cancel. Standard msg & data rates apply. Terms: [URL]"

Dealership SMS Compliance