SMS/Email Compliance for Dealers: TCPA & CASL Guide (2026)

SMS and email compliance is not optional—violations result in $500-$1,500 fines per unsolicited message under US TCPA and up to $10 million CAD penalties under Canadian CASL. One class-action lawsuit from sending marketing texts without proper consent can bankrupt a small dealership. Yet most dealers unknowingly violate these laws daily by texting leads without explicit opt-in or failing to honor unsubscribe requests.

This guide explains US TCPA requirements, Canadian CASL requirements, how to obtain proper consent, mandatory opt-out procedures, Do-Not-Call list management, and common compliance mistakes that trigger lawsuits.

US Compliance: TCPA (Telephone Consumer Protection Act)

1. Core TCPA Requirements

Requirement	Details	Penalty for Violation
Prior Express Written Consent	Must obtain customer's written agreement to receive marketing texts/calls. Verbal consent insufficient. Lead form must include clear consent language + signature/checkbox.	$500-$1,500 per unauthorized text/call
Opt-Out Mechanism	Every marketing text must include unsubscribe option: "Reply STOP to opt out." Must honor within 10 days (best practice: immediate).	$500-$1,500 per text sent after opt-out request
Time-of-Day Restrictions	No calls/texts before 8am or after 9pm recipient's local time (not your time zone).	$500-$1,500 per violation
Do-Not-Call Registry Check	Scrub calling list against National Do-Not-Call Registry every 31 days. Numbers on registry cannot be called for marketing (even with prior consent).	$500-$1,500 per call to registered number
Auto-Dialer/Pre-Recorded Message Restrictions	Cannot use auto-dialers or pre-recorded messages without prior express written consent.	$500-$1,500 per automated call/text

2. What Qualifies as "Prior Express Written Consent"?

TCPA Definition: Written agreement (physical signature or electronic checkbox) with clear, conspicuous disclosure that customer consents to receive telemarketing calls/texts.

Compliant Consent Language (Example):

"By clicking SUBMIT, I authorize [Dealership Name] and its representatives to contact me at the phone number provided above via phone calls, text messages (SMS), and emails regarding my inquiry, promotional offers, and dealership services. I understand I am not required to provide this consent as a condition of purchasing goods or services. I can opt out at any time by replying STOP to any text message or clicking unsubscribe in emails. Message and data rates may apply."

Key Elements (All Required):

Clear Authorization: "I authorize [Dealership] to contact me"
Specify Channels: "via phone calls, text messages, and emails"
No Purchase Condition: "not required to provide this consent as a condition of purchasing"
Opt-Out Disclosure: "I can opt out anytime by replying STOP"
Standard Rates Disclosure: "Message and data rates may apply"

3. Exceptions: When Consent NOT Required

Scenario	Consent Required?	Notes
Established Business Relationship (EBR)	No (for 18 months after last transaction)	If customer purchased vehicle from you within 18 months, can call/text about service reminders, promotions. Does NOT apply to leads who never purchased.
Inquiry Response (Non-Marketing)	No (for single response)	Customer inquires about specific vehicle, you can call/text ONCE to respond to that inquiry. Ongoing follow-up requires consent.
Appointment Reminders	No (transactional, not marketing)	"Your test drive is scheduled for 2pm tomorrow" = OK without consent. "Come in for test drive + get $500 off!" = marketing, requires consent.
Landline Phone Numbers	No (TCPA exempts landlines)	TCPA protects cell phones, not landlines. But determining landline vs cell is difficult—assume all numbers are cell for safety.

Canadian Compliance: CASL (Anti-Spam Legislation)

1. Core CASL Requirements

Requirement	Details	Penalty for Violation
Express Consent	Clear, affirmative opt-in for commercial electronic messages (emails, texts, social DMs). Pre-checked boxes DON'T count.	Up to $10 million CAD per violation
Sender Identification	Every message must clearly identify sender (company name, contact info). Cannot use misleading "From" names.	Up to $10 million CAD
Unsubscribe Mechanism	Every message must include clear unsubscribe link/method. Must honor within 10 days (best practice: immediate). Unsubscribe must be free (no fees, no login required).	Up to $10 million CAD
Implied Consent Expiry	Implied consent (existing business relationship) expires 2 years after last purchase. After 2 years, must obtain express consent for continued marketing.	Up to $10 million CAD

2. Express vs Implied Consent (CASL)

Express Consent: Customer explicitly opts in (checks unchecked box, clicks "Yes, send me emails").

Lasts: Until customer withdraws consent (no expiration)
Best Practice: Get express consent on all lead forms

Implied Consent: Existing business relationship OR lead inquiry.

Existing Customer: Purchased vehicle within last 2 years → implied consent for promotional messages
Lead Inquiry: Submitted inquiry (vehicle info request) → implied consent for 6 months to respond to that inquiry + related promotional offers
Expiration: Implied consent expires after 2 years (customer) or 6 months (inquiry)

3. CASL-Compliant Message Template

Subject/Header: Clear, non-misleading (reflects actual content)

Body Example:

Hi [Name],

Thanks for your interest in the 2022 Honda Accord at ABC Motors. Here's the pricing and availability you requested:

[Vehicle details, photos, pricing]

About This Message:
You're receiving this email because you inquired about our inventory on [Date]. You can unsubscribe anytime using the link below.

Contact Us:
ABC Motors
123 Main St, Toronto, ON
Phone: 416-555-1234
Email: sales@abcmotors.ca

Unsubscribe from promotional emails

Required Elements:

Sender identification (company name, address, contact info)
Reason customer is receiving message ("you inquired on [Date]")
Unsubscribe link (clear, prominent, functional)

Opt-Out & Do-Not-Contact Management

1. Honoring Opt-Out Requests

Opt-Out Method	Action Required	Timeline
Reply STOP to Text	Add phone number to internal Do-Not-Text list immediately. Confirm opt-out with reply: "You've been unsubscribed. No more texts from [Dealership]."	Immediate (auto-process in CRM)
Click Unsubscribe in Email	Add email to Do-Not-Email list, remove from all email campaigns. Display confirmation page: "You've been unsubscribed."	Immediate
Verbal Request (Phone Call)	Document in CRM notes, add to Do-Not-Contact list for all channels (phone, text, email). Confirm verbally: "I've removed you from our contact list."	Within 24 hours
Email Request	Customer emails "remove me from list" → process same as unsubscribe link. Reply confirming removal.	Within 10 days (TCPA/CASL), but do immediate

2. Do-Not-Call List Scrubbing (US Only)

National Do-Not-Call Registry: US federal registry where consumers opt out of telemarketing calls.

Compliance Process:

Register with FTC: Create account at DoNotCall.gov (free for most businesses, $67/year for high-volume)
Download Registry: Download list of registered phone numbers (monthly or quarterly)
Scrub Your List: Compare your calling list against DNC registry. Remove matches.
Frequency: Must scrub every 31 days to remain compliant
Automation: Use compliance software (Gryphon, CallTools, LeadSquared) to auto-scrub in real-time

Safe Harbor (Limited Protection): If you scrubbed within last 31 days and documented the process, shows good faith effort (reduces penalties if accidental violation occurs).

Common Compliance Mistakes

1. Mistake: Buying Lead Lists and Texting Without Consent

Scenario: Dealer buys 1,000 "car shopper" leads from data broker, texts all with promotional offers.

Violation: TCPA requires consent from the BUSINESS that will contact the consumer, not just any business. Consent given to lead broker doesn't transfer to dealer.

Penalty Risk: 1,000 texts × $1,500 fine = $1.5 million class-action liability.

Safe Alternative: Only text leads who opted in on YOUR lead forms, not purchased lists.

2. Mistake: Pre-Checked Opt-In Boxes

Scenario: Lead form has checkbox for "Receive promotional texts" pre-checked by default.

Violation: CASL (Canada) and recent FCC guidance (US) require affirmative opt-in. Pre-checked box = no valid consent.

Fix: Checkbox must be unchecked by default. Customer actively checks to consent.

3. Mistake: No Unsubscribe Option in Texts

Scenario: Marketing text says "New inventory! Visit us today!" with no opt-out instructions.

Violation: TCPA and CASL require clear opt-out mechanism in every marketing message.

Fix: Add to every text: "Reply STOP to unsubscribe."

4. Mistake: Continuing to Contact After Opt-Out

Scenario: Customer replies STOP to text, but dealer's CRM doesn't auto-process opt-out. Sales rep manually texts customer again next week.

Violation: TCPA violation with $500-$1,500 penalty per message sent after opt-out.

Fix: Automated opt-out processing in CRM. "STOP" keyword triggers immediate Do-Not-Text flag. Train staff to NEVER manually override Do-Not-Contact status.

Compliance Best Practices

Get Explicit Consent on All Forms: Don't rely on implied consent—get clear opt-in for texts/emails.
Document Consent: Store timestamp, consent language, and IP address in CRM (audit trail if lawsuit occurs).
Include Opt-Out in Every Message: "Reply STOP" in texts, unsubscribe link in emails—no exceptions.
Honor Opt-Outs Immediately: Automate opt-out processing (don't rely on manual CRM updates).
Scrub DNC Registry Monthly: Use compliance software to auto-check phone numbers before calling/texting.
Train Staff: Ensure sales/BDC teams understand TCPA/CASL requirements. One rogue rep can trigger lawsuit.
Audit Regularly: Monthly compliance audit (check consent documentation, opt-out processing, DNC scrubbing).

Frequently Asked Questions

Can I text or email car leads without consent?

No (in most cases). US TCPA requires prior express written consent for marketing texts/calls to cell phones. Canadian CASL requires express or implied consent for commercial electronic messages. Exception: 'Established business relationship' allows contact for 2 years after last transaction. Safest approach: Get explicit opt-in consent on all lead forms and include unsubscribe option in every message.

What is TCPA and what are the penalties for violations?

TCPA (Telephone Consumer Protection Act) is US federal law regulating telemarketing calls, texts, and auto-dialers. Violations: $500-$1,500 PER unsolicited text/call (can add up to millions in class-action lawsuits). Requirements: (1) Prior express written consent for marketing, (2) Opt-out mechanism (reply STOP), (3) No calls/texts before 8am or after 9pm, (4) Maintain Do-Not-Call list.

What is CASL and how does it differ from TCPA?

CASL (Canadian Anti-Spam Legislation) regulates commercial electronic messages in Canada. Stricter than TCPA: Requires clear consent, sender identification, unsubscribe mechanism in EVERY message. Penalties: Up to $10 million CAD per violation. Key difference: TCPA focuses on phone/text, CASL covers email + text + social media DMs. If serving Canadian customers, you must comply with CASL (even if US-based dealer).

How do I get proper consent for SMS and email marketing?

Explicit opt-in: Include checkbox on lead forms: 'I consent to receive text messages and emails from [Dealership] about my inquiry and promotional offers. Message frequency varies. Reply STOP to unsubscribe.' Pre-checked boxes DON'T count as consent under CASL. Must be unchecked by default, user actively checks. Store consent timestamp and method in CRM for audit trail.

What happens if I accidentally text someone on the Do-Not-Call list?

TCPA violation with $500-$1,500 penalty per message. Scrub your contact list against National Do-Not-Call Registry (US) monthly. Use compliance software to auto-check phone numbers before texting. If someone requests removal, add to internal Do-Not-Contact list immediately (within 30 days). Never manually override Do-Not-Call status—lawsuit risk far exceeds any potential sale.

Built-in compliance with DealerOneView CRM. Automatic consent tracking, opt-out processing (STOP keyword auto-flags contacts), Do-Not-Call registry integration, time-of-day restrictions (no texts before 8am/after 9pm), and audit-ready consent logs. Reduce TCPA/CASL lawsuit risk to near-zero.

SMS/Email Compliance Basics for Dealers (Canada/US)