The Telephone Consumer Protection Act (TCPA) has long been a thorn in the side of businesses that rely on telemarketing, text messaging, and automated calls. Designed to protect consumers from unwanted communication, the law has become a cash machine for plaintiffs’ lawyers, who aggressively pursue violations, sometimes to the tune of tens of millions of dollars.
The latest target? Real estate giant Keller Williams. But why is Keller Williams under fire again? Well, they now face one of the largest TCPA settlements in history.
A state court recently granted preliminary approval for a $40 million settlement that Keller Williams agreed to pay. The lawsuit alleged that its franchisee real estate agents illegally called and texted more than 2 million people in violation of the TCPA.
This payout is massive, but it highlights a more significant issue: businesses that fail to comply with TCPA rules risk severe financial penalties, class action lawsuits, and irreparable damage to their reputation.
The Dangers of Ignoring TCPA Rules
Unfortunately, Keller Williams is just one example. TCPA violations are rampant, and companies large and small are finding themselves in legal trouble. Let’s break down ten common TCPA violations that businesses must avoid to steer clear of lawsuits and hefty settlements.
1. Calling Numbers on the National Do Not Call (DNC) Registry
One of the most frequent TCPA violations involves calling or texting individuals whose numbers are registered on the National Do Not Call Registry. The law prohibits businesses from reaching out to these numbers unless they have prior express consent or an existing business relationship.
In the Keller Williams case, many of the plaintiffs alleged that they were contacted despite being on the DNC list for more than 31 days. That’s a clear violation—and one that contributed heavily to the massive settlement.
2. Failing to Maintain an Internal Do Not Call List
Even if a number is not on the National DNC list, businesses must maintain their own internal DNC list. If a consumer requests to be removed from a company’s marketing list, the business must honor that request immediately and ensure no further calls or texts are sent.
Failure to maintain an updated internal DNC list is a major TCPA violation. In many lawsuits, plaintiffs argue that they repeatedly told a business to stop contacting them, but the calls or messages continued, making the case for damages even stronger.
3. Using Pre-Recorded or Artificial Voice Messages Without Consent
The TCPA strictly prohibits businesses from using pre-recorded voice messages or AI-generated calls unless the recipient has given prior express written consent. Many companies assume that sending a pre-recorded message makes their telemarketing efforts more efficient, but in reality, it significantly increases legal risk.
In the Keller Williams lawsuit, some plaintiffs alleged that they received automated messages promoting real estate services. That alone is enough to spark a TCPA class action.
4. Sending Text Messages Without Consent
Text messaging violations are one of the fastest-growing areas of TCPA litigation. Businesses often assume that texts are less intrusive than calls, but under the TCPA, unsolicited text messages are just as problematic.
One woman recently sued after receiving seven unsolicited text messages from a business. The demand? $35,000. That’s how expensive a single texting mistake can be.
5. Using an Automatic Telephone Dialing System (ATDS) Illegally
The TCPA prohibits businesses from using automatic telephone dialing systems (ATDS) to call or text consumers without explicit prior consent. An ATDS is any system that can store or produce phone numbers and dial them without human intervention.
Many businesses assume that if they manually dial a number, they’re in the clear, but courts have ruled that even partially automated dialing systems can qualify as ATDS, leading to major legal exposure.
6. Failing to Identify the Caller Properly
Every marketing call or text must clearly identify the business or individual making the contact. The law requires companies to provide their name, phone number, and address so that consumers know who is reaching out to them.
When businesses hide their identity, use spoofed numbers, or fail to provide clear contact information, they open the door to TCPA penalties and lawsuits.
7. Ignoring Consumer Opt-Out Requests
If a consumer replies “STOP” to a text message, the business must immediately cease further communication. The same rule applies if a person verbally requests to be removed from a calling list.
In many TCPA cases, plaintiffs argue that they opted out but continued to receive repeated calls and texts, which significantly increases the damages they can claim. Businesses that don’t have a robust opt-out system in place are walking into a legal trap.
8. Calling Work or Emergency Numbers Without Permission
The TCPA restricts businesses from calling hospital rooms, emergency numbers, and workplace phone lines without proper consent. Unsolicited calls to these numbers can result in steep fines and lawsuits.
Businesses often collect phone numbers without verifying whether they belong to a work or emergency line, which is a costly mistake.
9. Third-Party Vendor Violations
Many businesses outsource their telemarketing or text messaging efforts to third-party vendors. But here’s the catch: companies are still responsible for TCPA violations committed by their vendors.
In the Keller Williams case, many of the illegal calls and texts came from independent contractor real estate agents, but the company was still held liable. That’s because TCPA laws extend to anyone acting on behalf of the business.
10. Failing to Implement TCPA Compliance Measures
Keller Williams is now being forced to implement strict compliance measures as part of its $40 million settlement. These include:
- Creating a TCPA task force to improve compliance.
- Enhancing TCPA/DNC training materials for franchisees and agents.
- Making TCPA compliance resources more accessible to all employees.
Businesses that fail to take proactive steps to ensure compliance will likely find themselves facing similar lawsuits and multi-million-dollar settlements.
The Takeaway: TCPA Violations Are Expensive and Preventable
The Keller Williams case proves one thing: TCPA lawsuits aren’t going away. In fact, they’re only getting bigger. Plaintiffs’ attorneys are actively hunting for violations, and businesses that ignore compliance are playing a dangerous game.
The good news? TCPA violations are completely avoidable. Companies that follow the rules, obtain proper consent, and implement strong compliance measures can protect themselves from lawsuits and costly settlements.
If a single text message can trigger a $35,000 demand, imagine what an entire marketing campaign could cost your business. Now is the time to take TCPA compliance seriously—before you become the next Keller Williams.
Need Legal Help? Contact Bourassa Law Group Today
If you’ve received unsolicited calls or texts and suspect a TCPA violation, you may be entitled to compensation. Bourassa Law Group specializes in TCPA litigation, ensuring businesses are held accountable for violating consumer rights.
Call us today for a free consultation! Don’t wait—your claim could be worth thousands.
1-800-870-8910