tcpa_law · 11 min read

Understanding the TCPA Established Business Relationship (EBR) Exemption

The concept of a TCPA established business relationship (EBR) is one of the most misunderstood aspects of telemarketing law. While companies often use it as a defense for unwanted calls and texts, the exception is much narrower than they might claim. If a business violated the Telephone Consumer Protection Act (TCPA), you could be entitled to statutory damages of $500 for each illegal call or text, with that amount increasing up to $1,500 if the violation was knowing or willful. An EBR generally exists if you have made a purchase or transaction with a business in the last 18 months, or if you made an inquiry in the last 3 months. However, and this is the critical part, this rule does not give companies a free pass to send you marketing texts or robocalls to your cell phone.

What is the TCPA Established Business Relationship Exemption?

The Telephone Consumer Protection Act (TCPA) established a set of rules to protect consumers from aggressive and unwanted telemarketing communications. To balance consumer privacy with legitimate business practices, the Federal Communications Commission (FCC) created certain exemptions. The most cited of these is the established business relationship, or EBR, exemption. In legal terms, an EBR provides a company with a limited defense against claims of TCPA violations, but only under very specific circumstances. Understanding these details is key to knowing whether a call or text you received was illegal.

The FCC defines an EBR in two distinct ways. First, a relationship is formed through a commercial transaction. If you purchased, rented, or leased goods or services from a company, an 18-month period begins from the date of the last transaction. During this time, the business can argue that an EBR exists. Second, a relationship can be formed through a simple inquiry. If you submit an application or ask a question about a company’s products or services, a much shorter 3-month period begins from the date of your inquiry. This is a crucial distinction, as a brief question does not give a company a year and a half to contact you.

It is vital to understand what the EBR exemption actually permits. Historically, the EBR was a valid defense for making prerecorded telemarketing calls to residential landline numbers. However, the rules have become much stricter, especially concerning modern communication methods. The biggest misconception businesses and consumers have is believing an EBR allows for autodialed marketing texts or prerecorded marketing calls to a wireless number. Since 2013, the FCC has made it clear that for these types of communications, a business must have your prior express written consent, which is a much higher standard than an EBR.

In essence, the EBR exemption has become a very limited tool for marketers. While it may still apply to certain informational calls or calls to landlines, it is almost never a valid defense for sending you a promotional text message to your cell phone without your explicit, written permission. The existence of a past purchase does not automatically grant a company the right to flood your mobile phone with marketing messages. Any company that relies solely on an old transaction to justify modern text message marketing is likely violating the TCPA and could be liable for significant damages.

How the EBR Exemption Changed for Cell Phones and Texts

The landscape of telemarketing regulations shifted dramatically with the widespread adoption of cell phones. Recognizing that mobile devices are more private and intrusive than landlines, the FCC updated its TCPA rules in 2013 to provide consumers with greater protection. These changes severely limited the applicability of the established business relationship exemption for communications directed to wireless numbers. Before these updates, the lines were blurrier, and companies often argued that an EBR was sufficient permission to send marketing messages to any number you provided.

After 2013, the rules became crystal clear. For any telemarketing call made using an autodialer or containing a prerecorded message and sent to a cell phone number, the sender must obtain the recipient's prior express written consent. This type of consent requires a signed, written agreement that clearly authorizes the sender to deliver advertisements or telemarketing messages using an autodialer or prerecorded voice. The agreement must also specify the phone number to be called and inform the consumer that they are not required to consent as a condition of purchasing any goods or services. An EBR, which is an implied relationship, does not meet this high standard.

This change effectively separated marketing messages from informational ones. What qualifies as a marketing message is broad; the FCC has clarified that any communication with the dual purpose of providing information and promoting a product or service is treated as a telemarketing call. Therefore, if a text from your old car dealership reminds you of a service appointment but also mentions a new trade-in offer, it likely falls under the stricter consent rules. A full breakdown of what counts as marketing can be found in our guide to the TCPA marketing call definition.

In practice, this means the EBR exemption for cell phones is now almost exclusively limited to purely informational, non-marketing communications. For example, your bank can send automated fraud alerts, or a pharmacy can send prescription-ready notifications based on your existing relationship. But the moment those messages include coupons, sales announcements, or other promotional content, they require a different, more explicit level of permission. Companies that fail to recognize this distinction are a major source of TCPA violations and are frequently targeted in class action lawsuits. If you've received marketing texts from a company based only on a past purchase, they may have broken the law, and you could have a claim.

When Does an Established Business Relationship End?

An established business relationship is not a permanent status; it has clear expiration dates defined by law. The duration of the EBR depends entirely on the nature of your last interaction with the company. If your relationship is based on a transaction, such as buying a product or paying for a service, the EBR lasts for 18 months from the date of that last transaction. If a company continues to contact you with marketing messages after this period without obtaining new consent, it could be a violation of the TCPA.

If the relationship is based on an inquiry, the window is significantly shorter. When you contact a business to ask about a product, request information, or fill out an application, you create an EBR that lasts for only 3 months from the date of the inquiry. This brief period acknowledges that your interest might be temporary. A business cannot leverage a single question from a year ago to justify bombarding you with calls and texts today. Keeping track of these dates is important when evaluating whether a company's outreach is compliant with the law.

More importantly, you have the absolute right to terminate an established business relationship for communication purposes at any time. The EBR is immediately invalidated the moment you make a clear request to stop receiving calls or texts. This is often referred to as a cease communication request. Replying "STOP" to a text message is a legally recognized method of revoking any consent you may have previously given, including consent implied by an EBR. Similarly, verbally telling a telemarketer to place you on their internal do-not-call list has the same effect.

Once you opt out, the company must honor your request within a reasonable time, which the FCC generally considers to be about 10 business days. Any non-emergency calls or texts sent after that period are potential TCPA violations, regardless of how recent your last purchase was. This is one of the most powerful tools consumers have. The law is clear on TCPA opt-out requirements, and failure to maintain and honor a do-not-call list can lead to significant penalties for the offending business. A single text after an opt-out can be grounds for a claim.

What Kinds of Messages Are Permitted Under an EBR?

While the established business relationship exemption has been significantly narrowed for marketing to cell phones, it still provides a legal basis for certain types of communications. The primary category of messages allowed under an EBR are purely informational calls and texts. These are communications that are transactional or informative in nature and do not include any advertising or promotional material. The purpose must be to convey important, non-marketing information relevant to your relationship with the business.

Common examples of permissible informational messages include bank fraud alerts, credit card transaction warnings, package delivery notifications, and appointment reminders. A school could send automated calls about a closure, or a utility company could send a text about a service outage. In these cases, the company is not trying to sell you anything; it is providing a service-related notification. Because you have an existing relationship, the law presumes you consent to receive these essential updates. However, the volume and timing of these messages must still be reasonable.

The line becomes blurry with what are known as "dual-purpose" messages. These communications may start as informational but then include a marketing component. For instance, a text confirming your flight details that also contains an offer to upgrade your seat for a fee would likely be considered telemarketing. The FCC has stated that if a message has a dual purpose, with one purpose being marketing, it should be treated as a marketing message and is subject to the stricter prior express written consent requirement for cell phones. Companies often get this wrong, creating an opportunity for a successful TCPA claim.

It is crucial to remember that even if a company has a valid EBR with you, that relationship is not transferable. A company cannot legally provide or sell your contact information to its affiliates, partners, or other third parties, allowing them to contact you under the guise of that original EBR. The relationship is strictly between you and the specific entity with which you did business. If you start receiving calls or texts from a "partner" company you've never dealt with, those communications are likely illegal. Please note, this article is for informational purposes only and does not create an attorney-client relationship. If you believe your rights have been violated, you may want to submit your evidence for a free case review.

Real Examples of Violations

To understand how these rules apply in the real world, let's look at some common scenarios where a company's reliance on an established business relationship leads to a TCPA violation.

"ABC Solar: Hi Jamie, it's been 6 months since your solar panel installation. Did you know you can earn $250 for every friend you refer? Visit abcsolar-referral.com to learn more. Reply STOP to end msgs."

In this example, even though Jamie is a recent customer of ABC Solar, this text is a clear marketing message. The purpose is not informational; it is soliciting new business through a referral program. Since it's a marketing text sent to a cell phone, ABC Solar would need Jamie's prior express written consent, not just an EBR. Without that specific consent, this text is a likely violation worth $500 to $1,500.

"XYZ Lending: Great news! Mortgage rates are dropping. Based on your inquiry on our website earlier this year, we can offer you a 30-yr fixed at 6.25%. Call us now at 800-555-1234 to lock it in!"

A consumer who submitted an inquiry to XYZ Lending four months ago receives this text. The EBR based on an inquiry only lasts for three months. Since that window has closed, XYZ Lending no longer has any justification for sending marketing texts. This is a clear-cut violation of the TCPA's time limits on inquiry-based relationships.

"FashionFast Online: Your order has shipped! Track it here: bit.ly/trk123. P.S. Don't miss our 40% off flash sale this weekend! Use code FF40. Text STOP to cancel."

This is a classic dual-purpose message. While the shipping notification is a permitted informational message, the inclusion of the "40% off flash sale" promotion turns it into a marketing text. As a marketing text, it requires prior express written consent. By piggybacking a sales pitch onto a transactional update, FashionFast has likely committed a TCPA violation.

How to Document Violations Related to a Business Relationship

If you suspect you're receiving illegal texts or calls from a company you've done business with in the past, proper documentation is the most important step you can take to protect your rights. Strong evidence is the foundation of any successful TCPA claim. Here are the concrete steps you should follow to gather and preserve proof of potential violations.

First, open the messaging app on your phone. Use the search function to look for texts from companies you remember interacting with. Search for keywords like "sale," "deal," "offer," "percent off," or "% off." Also, a very effective method is to search for the word "STOP." This will bring up conversations where you might have tried to opt out, making it easy to see if the company contacted you again afterward.

Second, for every potentially illegal message, take a clear and complete screenshot. The screenshot must capture four key pieces of information to be useful as evidence:

Third, organize your evidence. Create a folder on your computer or cloud storage to save your screenshots. It's also helpful to keep a simple log or spreadsheet. In it, record the date, time, sender's number, and the name of the company for each message. If you told a company to stop calling or texting, make a note of the date and time you made that request. This timeline can be incredibly valuable in proving a willful violation.

Finally, do not delete the messages from your phone. The screenshots are great, but the original messages on your device are the best form of evidence. By following these steps, you create a comprehensive record that an attorney can use to evaluate your case and build a strong claim for the compensation you may be entitled to under the TCPA.

Check Your Phone Right Now

Many illegal texts hide in plain sight, disguised as messages from companies you already know. The key is knowing what to look for. Take a moment to perform this simple check.

"Open your messages and search the word STOP."

This search will show you every conversation where a company included standard opt-out language. Look closely at those threads. Did the business send you promotional offers based solely on a past purchase from months or years ago? Did they continue to text you after you replied with the word STOP? If the answer to either of these questions is yes, the company may have broken federal law. Each of those messages could be a violation worth hundreds or even thousands of dollars.

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Frequently Asked Questions

Does buying something one time give a company the right to text me forever?

Absolutely not. A one-time purchase creates an established business relationship that is strictly time-limited. Under TCPA rules, a transaction-based EBR lasts for only 18 months from the date of your last purchase or payment. After that period, the company cannot rely on that old transaction to legally contact you for marketing purposes without getting new consent. More importantly, an EBR does not give a company the right to send automated marketing texts to your cell phone even within that 18-month window; for that, they need your express written consent. At any point, you can revoke all communication privileges by replying "STOP" or otherwise telling them to cease contact, which they must honor.

What’s the difference between an EBR and prior express written consent?

An EBR and prior express written consent are two different standards of permission under the TCPA, and the difference is critical. An EBR is a form of implied consent based on your interactions with a business, such as making a purchase (18 months) or an inquiry (3 months). It primarily allows for certain informational messages or marketing calls to landlines. In contrast, prior express written consent is a much higher, explicit standard. It's required for all autodialed or prerecorded marketing calls and texts sent to a wireless number. This requires a formal agreement where you authorize a specific company to send you marketing messages, making it far more robust than the simple existence of a past business relationship.

Can a company share my number with its affiliates under an EBR?

No, an established business relationship is not transferable. The relationship is strictly between you and the specific company with which you directly conducted business. That company cannot legally give, sell, or share your phone number with its corporate parents, subsidiaries, affiliates, or marketing partners and claim the EBR extends to them. If a related but separate entity starts contacting you, they are required to obtain their own consent directly from you. This is a common source of TCPA violations, as large corporations often improperly share contact lists among their various brands, resulting in illegal calls and texts to consumers.

How much money can I get if a company violated the EBR rules?

The TCPA provides for powerful statutory damages to compensate consumers and deter illegal telemarketing. For each call or text that violates the TCPA, you may be entitled to recover $500. If a court finds that the company committed the violation willfully or knowingly, such as continuing to text you after you told them to stop, that amount can be tripled to $1,500 per violation. With multiple illegal texts or calls, these damages can add up quickly. Many companies choose to settle these claims rather than face a trial, and you can see a history of such cases on the TCPA Settlement Tracker. For a detailed look at how these penalties are assessed, you can read our guide on the TCPA penalty per call.

TLDR

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This article is for informational purposes only and does not create an attorney-client relationship.