SMS Compliance

How we are staying ahead of Compliance in SMS.

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Legal Disclaimer: We are not attorneys and this is not legal advice – we recommend you work with your own attorneys, but you can take comfort knowing that our system has been vetted by multiple top TCPA legal experts.

Lead Sherpa + TCPA-Compliance SMS Laws

Carriers are rolling out “10DLC” (ten-digit long code) restrictions to monitor peer-to-peer (“P2P”) texting platforms like Lead Sherpa, and other app-to-peer (“A2P”) services will be required to follow this new protocol. Each carrier is rolling out its own set of rules which they interpret to be compliant with CTIA guidelines.

These rules include but are not limited to:

Registration requirements for all campaigns
A brand verification status
Message filtering for non-compliant profiles

Using a non-compliant system exposes you to infinite risk – literally! Current penalties allow for a $500 fine per violation. A single non-compliant SMS campaign has the potential to bankrupt your company, and it is now possible to be held PERSONALLY liable for calls and texts that violate the statute.

The ONLY compliant SMS system for real-estate pros.

Built with “always-on” compliance and vetted by top attorneys, Lead Sherpa keeps your safety from litigators a top priority. We stay ahead of industry regulations, guidelines and rules so that you can focus on closing deals.

Other companies claim to be compliant when they are not – ability to send RVM or automated followups render the entire system to be non-compliant. Prove it! Ask for opinion letter written by an attorney who has vetted their system.

If you’re already a Lead Sherpa customer or partner, please contact your customer success manager if you have any further questions.

Learn more about the SMS compliance

What is the “TCPA”?

The Telephone Consumer Protection Act (TCPA) is a federal law enacted in 1991 in the United States to curb unwanted telemarketing calls and communications. It restricts the use of autodialers, prerecorded voice messages, SMS text messages, and fax machines for marketing purposes, requiring businesses to obtain prior express written consent from consumers before reaching out.

The TCPA also established the National Do Not Call Registry, allowing individuals to opt out of receiving telemarketing calls, and mandates that telemarketers provide clear identification and an opt-out mechanism in their messages. Violations of the TCPA can lead to significant fines, making compliance crucial for businesses engaging in telemarketing and mass communication.
Is Lead Sherpa texting legal or compliant in my state?

Yes, Lead Sherpa operates within legal and compliance boundaries across various jurisdictions, and here’s why:

Legitimate Business Communication: The core function of Lead Sherpa’s messaging service is to facilitate legitimate business offers, specifically, making offers to purchase properties from recipients. This type of communication is distinct from unsolicited telemarketing or promotional messaging, as it involves a direct, relevant offer to the recipient, which is generally considered a legitimate business interest.

Human Intervention Requirement: Lead Sherpa is designed with compliance in mind, notably in its operational distinction from auto-dialers. Our platform does not automate the sending of messages without human oversight. Each message sent through Lead Sherpa requires manual approval or initiation by a user. This critical feature ensures that our service does not fall under the regulatory definition of an auto-dialer, which is subject to stricter regulations and consent requirements under laws like the TCPA (Telephone Consumer Protection Act).

Adherence to State Laws: While Lead Sherpa maintains a foundation for compliance with federal regulations, it’s important to recognize that state laws regarding texting and solicitation can vary. We advise all users to familiarize themselves with the specific legal requirements and restrictions in their state or the states where they intend to send messages. This due diligence is essential as some states may have more stringent rules or additional requirements for business communications, including real estate solicitation.

To further ensure compliance and maximize the effectiveness of your outreach with Lead Sherpa, we recommend the following best practices:

Obtain Consent When Applicable: Even though Lead Sherpa’s messaging is designed for making purchase offers and is not considered telemarketing, obtaining explicit consent from recipients can enhance trust and reduce the risk of complaints.

Provide Clear Opt-Out Options: Always include a clear and easy way for recipients to opt-out of receiving further communications from you. This practice is not only a legal requirement in many jurisdictions but also fosters goodwill and respects the preferences of property owners.

Stay Informed on Legal Developments: Laws and regulations governing text messaging and telemarketing are subject to change. Regularly updating your knowledge and adjusting your practices is crucial for ongoing compliance.

Lead Sherpa’s platform is designed with legal compliance as a priority, leveraging human intervention in message sending and focusing on legitimate business offers to ensure that our users can confidently use our services within the bounds of the law. However, due diligence regarding state-specific laws remains a critical responsibility of all our users.
Why are other systems not compliant?

When evaluating the compliance of texting solutions, it’s essential to understand the regulatory landscape, including the TCPA (Telephone Consumer Protection Act) and CTIA (Cellular Telecommunications and Internet Association) guidelines. These regulations protect consumers from unsolicited messages and ensure transparent communication.

Here are key questions to ask before choosing a texting solution, along with explanations of why these features matter for compliance:

Does the SMS system allow scheduled messaging of any kind?

Compliance Concern: Scheduled messaging implies messages can be sent automatically without human intervention at the time of sending. Under the TCPA, this could classify the system as an auto-dialer, which requires strict consent and compliance protocols. If a system allows scheduled messaging, it is not TCPA compliant.

If the system can send a message without human intervention, is it compliant?

Compliance Concern: The TCPA specifically regulates using auto-dialers or any system that can send messages without human intervention to protect consumers from spam and unsolicited messages. A compliant system requires manual action to send each message, ensuring deliberate communication.