TCPA Compliance Explained: Essential Rules for Sales Calling Success
- Jon Elhardt
- Apr 24
- 10 min read
A single TCPA compliance violation can cost your business $16,000 per call. Companies like Dish Network learned this lesson the hard way when they faced a staggering $341 million penalty for breaking these regulations.
The 1991 Telephone Consumer Protection Act (TCPA) defines strict rules for telemarketing calls and automated dialing systems. These regulations govern automated calls, text messages, voice broadcasts and faxes. Your business success depends on understanding these requirements, as TCPA violations lead to fines between $500 and $1,500 per call.
This detailed guide will direct you through TCPA compliance requirements and help you manage consent and calling hour restrictions. You'll discover ways to safeguard your business while running sales operations within legal limits.
Understanding TCPA Regulations and Legal Scope
The TCPA forms the foundation of U.S. telemarketing regulations. Your sales operations need proper TCPA compliance, which starts with understanding its basic framework and legal limits.
Definition of TCPA under 47 U.S.C. § 227
The Telephone Consumer Protection Act (TCPA), codified as 47 U.S.C. § 227, is now over 30 years old. Congress passed it to protect consumers from unwanted calls that violated their privacy. This federal law covers all types of outbound telephone communication, including:
Manual and autodialed phone calls
Text messages (SMS)
Prerecorded voice messages
Artificial voice messages
Fax transmissions
The TCPA protects consumers from aggressive telemarketing by setting limits on how and when businesses can reach potential customers. The law lets consumers take legal action and sue violators for $500 to $1,500 per violation.
What Qualifies as an Automatic Telephone Dialing System (ATDS)
Understanding what makes up an ATDS remains one of the trickiest parts of TCPA compliance. The statute defines an ATDS as "equipment which has the capacity (A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers".
The 2021 Supreme Court ruling in Facebook v. Duguid cleared up this definition. The Court unanimously decided that an ATDS must have the "capacity to use a random or sequential number generator to either store or produce phone numbers to be called".
This ruling changes your compliance strategy because:
Many modern dialing systems don't count as ATDS anymore
Systems that just store and dial numbers from a customer list aren't ATDS
What matters is if the system can generate random or sequential numbers
Notwithstanding that, businesses should stay careful since other TCPA rules still apply whether they use an ATDS or not.
TCPA Rules for Prerecorded Messages and Robocalls
The TCPA sets strict rules for robocalls, which cover both autodialer calls and those using prerecorded or artificial voice messages. Your prerecorded marketing calls must:
Get written consent before calling
Clearly identify your business at the start
Give out a contact phone number during or after the message
Have an automated opt-out system that works
On top of that, the TCPA bans automated calls to emergency lines, healthcare facilities, patient rooms, and services where the recipient pays for the call. The FCC has ruled that AI-generated voices count as "artificial" voice calls under the TCPA, so voice cloning tech must follow these same rules.
TCPA Calling Hours and Time Zone Compliance
Time restrictions play a vital role in TCPA compliance. The law bans telemarketing calls:
Before 8 AM or after 9 PM in the recipient's local time zone
To numbers listed on the National Do-Not-Call Registry (without prior consent)
Pick the stricter option between the recipient's area code and physical address for calling hours. A person with a New York phone number living in California should get calls based on California's time zone rules.
The safest bet for unknown recipient locations is to call between 11 AM and 9 PM Eastern Time, which keeps you compliant across all U.S. time zones. This approach helps avoid the growing number of TCPA lawsuits that target calling hour violations.
Some states enforce stricter calling hours than federal TCPA rules. Your regular compliance checks should look at both federal and state rules to avoid getting pricey violations.
Consent Requirements Under TCPA Compliance Guidelines
The life-blood of TCPA compliance for sales calling operations depends on getting consent right. Your organization's ability to stay within legal boundaries or face pricey penalties often comes down to proper versus improper consent documentation.
Prior Express Consent vs. Prior Express Written Consent (PEWC)
TCPA regulations define two main types of consent that determine which calls you can legally make:
Prior Express Consent (PEC) means permission you can get verbally or when consumers voluntarily provide their phone numbers. This simple level of consent works for:
Non-telemarketing, informational calls made using an autodialer
Transactional messages like appointment reminders or delivery notifications
Manually dialed calls that don't use prerecorded messages
Prior Express Written Consent (PEWC) sets a higher standard specifically for:
Any telemarketing calls using an automatic telephone dialing system (ATDS)
All prerecorded or artificial voice telemarketing messages
Telemarketing texts to mobile numbers
PEWC needs a written agreement that has: clear disclosure about consumer authorization for automated calls, seller identification, confirmation that consent isn't tied to purchases, and the authorized phone number. The FCC has updated PEWC requirements to require "one-to-one" consent starting January 27, 2025. Each seller must now get separate, explicit permission instead of bundled consent from multiple companies.
How to Capture PEWC Through Digital Forms and Voice Recordings
Today's digital world offers several methods to capture PEWC that meet the "written" requirement under the E-SIGN Act:
Digital forms: Website checkboxes, online agreements, and email confirmations can qualify as written consent if they use proper disclosure language and need consumers to take action like checking a box.
Voice recordings: Simple verbal consent doesn't count as PEWC. However, properly documented voice recordings that capture complete disclosure information and affirmative agreement can prove consent.
Text message confirmations: Consumers who respond positively to text messages can provide a valid signature for PEWC. This works best when the original disclosure is clear and you keep good records.
Your consent process must include all required elements: your business identification, clear disclosure about automated technology use, confirmation that purchases aren't tied to consent, and explicit permission to contact specific numbers.
State-Specific Consent Expiration Rules (e.g., Florida 18-Month Rule)
Federal TCPA regulations don't usually specify when consent expires. Several states have created their own restrictions:
Florida stands out with its 18-month consent expiration rule under the Florida Telephone Solicitation Act (FTSA). Companies must get fresh consent from consumers after this period to continue telemarketing communications. The state's interpretation of a "prior or existing business relationship" requires voluntary two-way communication based on either:
A purchase/transaction within 18 months before the call
An inquiry/application about products within 3 months before the call
Florida has expanded what counts as a valid "signature" for consent. Actions that show express consent now include checking boxes, responding to text messages, or replying to email solicitations.
Tracking consent expiration dates becomes crucial for compliance, especially if you operate in multiple states with different requirements. Strong records of when and how you got consent will help you prove compliance during regulatory audits or litigation.
TCPA-Compliant Dialing Technologies and Sales Tools
Your sales operations' TCPA compliance depends heavily on choosing the right dialing technology. The 2021 Supreme Court ruling in Facebook v. Duguid made it even more significant to learn about the differences between various calling systems.
Manual Dialers vs. ATDS: Key Compliance Differences
The main difference between manual dialers and Automatic Telephone Dialing Systems (ATDS) shapes which TCPA regulations apply to your calls. Manual dialing needs direct human intervention to start each call—you typically push buttons, preview calls, or click to dial. An ATDS, however, must be able to "store or produce telephone numbers using a random or sequential number generator".
This difference matters because:
Calls to cell phones using an ATDS need prior express written consent
Manual dialing systems have fewer restrictions since they don't trigger the ATDS provisions
Fines for violations range from $500 to $1,500 per call
Many businesses now use manual dialing workflows to lower compliance risks, especially when they call mobile numbers without consent records.
Human-Initiated Dialing Systems and Click-to-Call Tools
Click-to-call technologies have become popular TCPA-compliant alternatives to traditional autodialers. Agents must click each number before dialing with these systems. This human intervention helps avoid ATDS classification.
Key examples include:
Click-to-Comply™ systems that need manual initiation of every call
Manual Touch Mode that boosts preview dialing by removing self-operating functionality
FastClick Dialer which needs human intervention while maintaining high-speed performance
The Eighth Circuit Court of Appeals confirmed that marketing systems sending messages to numbers randomly selected from a database are not considered ATDS if humans intervene before sending. Legal support for click-to-call systems as TCPA-compliant alternatives has grown.
Agent-Assisted Dialing and Human Intervention Thresholds
Courts consistently look at human intervention levels to determine TCPA compliance thresholds. Agent-assisted dialers must meet these requirements:
A human must start each call
The system can't automatically dial without agent action
Separate server architecture should remove automated dialing capability
The court ruled in Glasser v. Hilton Grand Vacations that a click-to-dial system wasn't an ATDS because "human intervention was required before a cell number could be dialed". Similarly, in Ramos v. Hopele, the court found that "this amount of human intervention is sufficient to negate the EZ-texting program as an automatic telephone dialing system".
The technology's difference comes down to who—or what—starts the calling process. Systems needing meaningful human involvement at call initiation usually avoid ATDS classification. Systems that dial automatically after initial setup likely face stricter TCPA regulations.
Materials and Methods: Implementing TCPA Compliance in Sales Workflows
Reliable systems are the foundations of green TCPA compliance in daily sales operations. Teams with good intentions can violate regulations without proper technical infrastructure.
CRM Integration for Consent Tracking and DNC List Management
Your TCPA compliance success depends on dedicated CRM configurations. The original setup requires a specific consent flag field in your CRM to show if you got one-to-one consent. This field should track both consent status and when it expires.
This becomes especially important when you have states with specific time limits, like Florida's 18-month rule.
Your CRM should handle three different Do-Not-Call lists at once:
Federal DNC Registry
State-specific DNC lists
Your internal company-specific DNC list
Companies must keep their internal DNC lists for five years after the request date (ten years in three states). Automated rules can then prevent calls based on timezone, area code, or state-specific restrictions.
Call Recording and Audit Trail Setup for Consent Verification
Call recording systems serve two purposes: they capture verbal consent and provide evidence during disputes. Verbal consent alone doesn't qualify as Prior Express Written Consent. However, well-documented recordings strengthen your compliance position.
A compliant call recording system needs to:
Let participants know about call recording
Keep recordings safe for at least five years
Use automated disclosure statements when calls begin
Detailed audit trails must track every compliance action, including DNC list checks. Yes, it is vital to have these records during regulatory investigations. They document not just the consent but also when and how you got it.
Automated Scrubbing of Reassigned Numbers and Mobile Lines
We implemented automatic number verification against the FCC's Reassigned Numbers Database (RND) to avoid calling numbers that changed owners. This database updates daily and helps confirm if phone numbers still belong to the same consumers who gave consent.
Cell phone scrubbing tools spot wireless numbers that need PEWC before contact. These tools should combine smoothly with your consent verification systems. The system ended up protecting against a common TCPA issue - calling reassigned numbers where consent no longer applies.
Limitations and Legal Risks of TCPA Violations
TCPA violations can destroy your business operations financially. You need strict compliance - it's not optional anymore.
Fines Per Violation: $500 to $1500 Per Call
The TCPA enforces heavy penalties to stop non-compliance. You'll pay $500 per call if you break the rules without knowing. The penalties triple to $1500 per call if courts find that you knew about the violations.
These fines might look manageable at first glance, especially for single violations. The numbers become scary when you look at entire calling campaigns. To name just one example, see what happens with 1,000 non-compliant calls - you could face penalties of $500,000, or even $1.5 million for knowing violations.
The TCPA has no limit on damage amounts. Many class action lawsuits end up with settlements worth tens of millions of dollars.
Vicarious Liability and Agency Relationships
You're responsible for all calls - both direct and those made by others on your behalf. Federal common-law makes you liable when third parties break TCPA rules while acting as your agents.
Courts look at three main theories to establish agency relationships:
Actual authority: An agent believes they should act in certain ways based on your communication
Apparent authority: Your actions make others reasonably think an agent can act for you
Ratification: You approve someone's previous actions, making them count as authorized
The FCC states clearly that outsourcing telemarketing won't help you dodge liability. Even careful contracts that deny agency relationships won't protect you if other evidence shows you controlled the third party.
Litigator Traps and Serial TCPA Lawsuits
Professional plaintiffs have created an industry around TCPA violations. These serial litigators hunt for violations to make money. They use several tricks:
They pretend to be interested in your products and give real phone numbers
They use multiple prepaid phones to catch calls to reassigned numbers
They move landline numbers to cell phones to trigger different TCPA rules
They do call seeding by calling back from various numbers without consent
Some serial plaintiffs file hundreds of lawsuits and earn huge settlements. TCPA filings went up 11% in 2023. You need strong protection against these traps to keep your business safe.
Put Compliance on Autopilot—With Real People at the Wheel
Your business needs vigilant attention to stay protected against TCPA violations and meet compliance requirements. This piece covers everything in TCPA compliance, from core regulations to proper technical safeguards.
Your TCPA compliance success depends on three key elements:
Proper consent management and documentation
Careful selection of compliant dialing technologies
Reliable systems to track, record, and verify compliance
Note that TCPA violations can get pricey, with penalties up to $1,500 per call for willful non-compliance. On top of that, professional litigators actively target businesses that don't maintain strict compliance standards.
Need a hand scaling compliant outreach? Tendril’s agent‑assisted dialing platform keeps every call on the right side of the TCPA.
At Tendril, every single outbound call is triggered by a human hand, not by software. Our platform simply queues the next number on an agent’s screen; nothing happens until the agent physically clicks CALL. Because there is no capacity to generate or dial random / sequential numbers, the system cannot be classified as an Automatic Telephone Dialing System (ATDS)—eliminating the biggest TCPA risk most dialing tools create.
When the line connects, a live Tendril agent speaks in real time. We never deploy AI voices, chat-bots, or auto-play messages. Even voicemail drops are manual: the agent must choose to leave a prerecorded message after confirming they have reached a mailbox. By steering clear of robo-elements, we avoid the prerecorded-message rules that fuel so many TCPA lawsuits.
Before an agent clicks, the software performs a rapid-fire compliance check—verifying do-not-call status, consent flags, and local calling-hour rules. If any item fails, the number is instantly skipped. That real-time screen protects you from accidental dials to numbers lacking prior express written consent, to reassigned mobiles, or outside the 8 a.m.–9 p.m. window.
Every conversation is recorded and archived. Team leaders host weekly “call-review” sessions where they play recordings, coach agents on tone and disclosures, and document any corrective steps. Those recordings create a time-stamped audit trail for regulators—while also sharpening agent skills.
The bottom line: Tendril delivers warm, permission-verified conversations straight to your closers—minus the litigation risk that shadows automated dialers.
Ready to see a human-powered compliance engine in action? Book a free demo and discover how Tendril keeps your pipeline moving and your legal team sleeping soundly.
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