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What Is the TCPA Established Business Relationship Rule?

The TCPA established business relationship (EBR) is a specific legal definition that can sometimes allow a company to contact you without your express consent. However, this exception has become very narrow, especially for marketing robocalls and texts sent to your cell phone. Under the Telephone Consumer Protection Act (TCPA), violations of these rules can make a company liable for significant damages, potentially entitling you to $500 per illegal call or text, and up to $1,500 for each violation if a court finds it was willful or knowing. Many companies incorrectly cite an existing business relationship as a defense for illegal spam, making it a critical concept for consumers to understand. Knowing the limits of this rule is the first step toward protecting your privacy and potentially recovering compensation for the harassment you have endured from unwanted communications.

What Is an Established Business Relationship Under the TCPA?

The term "established business relationship" is a defense that companies often try to use when accused of violating the TCPA. The Federal Communications Commission (FCC), which creates the rules to enforce the TCPA, has a very specific definition for this relationship. It is not a vague concept but a time-limited status created by a direct interaction between you and a business. An EBR can be formed in one of two ways. The first is a transaction-based relationship, which is created when you purchase, rent, or lease goods or services from a company. This type of relationship lasts for eighteen months following the date of your last transaction with that business.

The second type is an inquiry-based relationship. This is formed when you submit an application, or make an inquiry about a company's products or services. This could include filling out a web form for a quote, calling customer service for information, or applying for a loan. This type of relationship is much shorter, lasting only for three months from the date of your inquiry. It is crucial to note that this relationship must be initiated by you, the consumer. A company cannot create an EBR with you simply by obtaining your contact information from a third party or a data broker.

In practice, businesses facing TCPA lawsuits frequently argue that they had an existing business relationship with the consumer, believing it gives them the right to make calls or send texts. They see it as a shield against liability. However, as we will explore, major changes to TCPA rules in the last decade have severely weakened this defense, particularly concerning marketing messages sent to wireless numbers. Understanding these strict time limits and the narrow definition is key to determining whether a company's contact was permissible or a violation of federal law.

How This Rule Affects Robocalls and Marketing Texts

The most significant point for modern consumers is how the EBR exception interacts with rules for autodialed or prerecorded calls and texts to cell phones. While the EBR was once a powerful defense for telemarketers, its power has been drastically curtailed. In 2013, the FCC implemented new rules that changed the landscape of telemarketing. For almost all autodialed or prerecorded marketing calls and texts sent to a wireless number, the law now requires a company to have your "prior express written consent."

This "prior express written consent" is a much higher standard than the implied permission of an EBR. It requires a signed, written agreement from you that clearly and conspicuously authorizes a specific seller to deliver advertisements or telemarketing messages using an autodialer or a prerecorded voice to your specific phone number. The agreement must also inform you that you are not required to provide this consent as a condition of purchasing any property, goods, or services. This means that even if you bought a product from a company last month (creating an 18-month EBR), that company cannot legally start blasting your cell phone with automated marketing texts unless they have a separate, compliant written consent form from you.

The existence of an EBR does not give a company a free pass to spam you with marketing messages. So, where does the EBR exception still apply? Its primary remaining function is for purely informational, non-marketing communications. For example, a bank might be able to send you an automated fraud alert text without your prior express written consent, relying on the EBR. Similarly, a doctor's office could send an automated appointment reminder. These types of communications are generally permitted under the TCPA's informational call exception, as long as they do not contain any advertising or telemarketing content.

More importantly, companies often blur the line between informational and marketing messages, hoping you will not notice. A message that starts as a shipping notification but includes a coupon for a future purchase can cross the line into marketing, potentially negating the EBR defense and requiring prior express written consent. The takeaway is clear: for marketing via autodialer to your cell phone, the EBR is largely irrelevant. The controlling standard is prior express written consent, and without it, those calls and texts are likely illegal.

When Does a Business Relationship End?

An established business relationship is not permanent. As defined by the FCC, it has a built-in expiration date. A relationship based on a transaction automatically expires 18 months after your last purchase or payment. A relationship based on an inquiry expires much faster, ending just three months after you reached out to the business. Once these time limits pass, the company can no longer claim an EBR to justify making certain types of calls to you. Any telemarketing call to a number on the National Do Not Call Registry after this period, for instance, would be a clear violation.

However, the most powerful and immediate way for a business relationship to end for communication purposes is when you, the consumer, say so. You have the absolute right to revoke any consent you may have given and to opt out of future communications. A "TCPA opt-out" is a direct command from you to a company to stop contacting you. This can be done verbally during a phone call or, more commonly for text messages, by replying with words like "STOP," "END," "CANCEL," "UNSUBSCRIBE," or "QUIT."

Once you make a clear opt-out request, the company is legally required to honor it within a reasonable period, which the FCC generally considers to be around 10 business days. After you have opted out, any pre-existing EBR is terminated for the purpose of making telemarketing calls or sending marketing texts. Continuing to contact you after you have revoked consent is one of the most straightforward types of TCPA violations. It does not matter if you are still within the 18-month transaction window; your direct instruction to stop overrides any implied relationship. This is a critical protection against companies that refuse to take no for an answer, and it empowers you to control who can contact you. You can learn more about how this interacts with the TCPA DNC List Lookup rules.

How Much Money Can You Get for Violations?

The TCPA provides consumers with a powerful tool to fight back against illegal calls and texts: statutory damages. For each individual call or text that violates the Act, you may be entitled to recover $500. This amount is not based on any financial loss you suffered; it is a penalty designed to deter companies from engaging in this illegal behavior. The law recognizes that your privacy has value, and these unwanted intrusions are a compensable harm in themselves. This penalty applies to a wide range of violations, from calls made without the proper consent to calls made after you have placed your number on the Do Not Call Registry or made a specific opt-out request.

Furthermore, the TCPA includes a provision for enhanced damages if the company's violations were committed willfully or knowingly. If a court determines that the company knew it was breaking the law or recklessly disregarded the rules, the damages can be tripled to $1,500 per violation. For example, if you replied "STOP" to a company's marketing texts and they continued to send you messages, those subsequent texts would very likely be considered willful violations. A pattern of just 10 illegal texts could result in potential damages of $5,000, or up to $15,000 if the violations are found to be willful. For more detail, you can read our guide on the TCPA penalty per call.

It is also important to know that the federal statute of limitations for TCPA claims is four years. This means you can look back at calls and texts you received over the past four years to identify potential violations. The damages can add up quickly, which is why many companies have paid millions in class action lawsuits, as documented in our TCPA Settlement Tracker. This article is for informational purposes only and does not create an attorney-client relationship. If you believe your rights have been violated, collecting evidence of each call and text is the first step toward holding the offending company accountable.

Real Examples of Violations

Sometimes, seeing real-world scenarios makes the rules clearer. Here are a few examples of how a company might illegally use the idea of a TCPA established business relationship.

Sender: 1-800-123-4567 Date: June 15, 2024 Hey Sarah, it's XYZ Lending again! Rates are still at record lows. Don't miss your chance to refi. Visit us at xyzlending-deals.com to see your new payment!

In this scenario, Sarah had filled out a form for a mortgage quote from XYZ Lending on January 10, 2024. This created a three-month inquiry-based EBR that expired on April 10, 2024. The text message in June is sent two months after the EBR ended. More importantly, it is a marketing text sent using an automated system to her cell phone, which requires her prior express written consent regardless of the EBR. Because she never provided that specific written consent and the inquiry-based EBR had expired, this text is a clear violation of the TCPA.

Sender: 555-444 Date: August 2, 2024 ABC Deals: Your weekend flash sale is here! Get 40% off all shoes with code WEEKEND40. Shop now: abc-deals-site.net/shoes. Txt HELP 4 help, STOP 2 stop.

Here, the consumer bought a shirt from ABC Deals in May 2024. In July, they received a similar marketing text and replied "STOP." The company's system should have immediately added the consumer's number to its internal do-not-call list. By sending another marketing text in August, ABC Deals knowingly ignored a direct opt-out request. This not only violates the TCPA but could also be considered a willful violation, potentially making it worth $1,500 in damages.

Sender: 1-222-333-4444 Date: September 20, 2024 Your home is a perfect fit for solar! Our partner, Big Bank, identified you as a premium customer. Let ABC Solar give you a free estimate and save on your electric bill. Reply YES for a quote.

This example illustrates an illegal attempt to "share" a business relationship. The consumer has a credit card with Big Bank, creating an EBR with the bank itself. However, that relationship does not transfer to Big Bank's marketing partners, like ABC Solar. ABC Solar has no independent business relationship with the consumer and certainly does not have prior express written consent. Claiming a relationship through a third party is not a valid defense, making this unsolicited marketing text a potential violation.

How to Check Your Phone for Violations

Your phone's message history can be a treasure trove of evidence for a potential TCPA claim. Many people delete spam without a second thought, but taking a few minutes to investigate could reveal illegal activity. Here are some concrete steps you can take to check your phone for violations related to the established business relationship rule and other TCPA standards.

First, open your primary messaging application. Use the search bar at the top of the app to look for keywords commonly found in marketing and spam texts. Start with terms like "STOP," "unsubscribe," and "opt-out." This will help you find instances where you told a company to stop texting you. If you find messages from that same sender that were sent after your opt-out request, you may have a strong case for a willful violation. Save these conversations immediately.

Next, broaden your search to include common marketing phrases. Search for words like "deal," "offer," "sale," "coupon," "discount," "congrats," or "winner." This can help you identify unsolicited marketing messages from companies you do not recognize or from businesses you haven't interacted with in years. Remember the 18-month and 3-month time limits for an EBR. A text from a car dealership you bought a car from five years ago is a potential violation.

When you find a potentially illegal message, take a clear screenshot. It is essential that the screenshot captures three key pieces of information: the content of the message itself, the sender's phone number or short code, and the date and time the message was received. Create a folder on your phone or computer to save these screenshots. It is also helpful to start a simple log in a notebook or a spreadsheet, listing the sender, the date, and a brief note. This documentation is the evidence needed if you decide to submit a claim for compensation.

Check Your Phone Right Now

Take a moment to perform a simple but powerful search on your phone. It could reveal evidence of companies breaking federal law and ignoring your right to privacy.

Open your messages and search the word STOP.

Did you find any conversations where you replied "STOP" to a sender? Now, check if that same sender sent you any more messages after that date. Any text you received after you told them to stop is a direct violation of your opt-out request. This is one of the clearest forms of TCPA violation, as it shows a company blatantly disregarding your instructions.

Many companies count on consumers being too busy or unaware of their rights to notice these subsequent illegal texts. They may continue to send you marketing messages for days, weeks, or even months after you opted out, racking up potential penalties with each message. Don't let them get away with it. You have the right to be left alone. If you found evidence of these violations, your next step is simple.

Submit screenshots at SpamClaims.com

Frequently Asked Questions

Does buying something one time mean a company can text me forever?

No, absolutely not. A single purchase creates a transaction-based established business relationship that lasts for only 18 months. After that period, the EBR expires. More importantly, for a company to legally send you automated marketing texts to your cell phone, they need more than just an EBR. Since 2013, the FCC has required companies to obtain your "prior express written consent." This is a separate, explicit permission slip you sign, electronically or on paper, agreeing to receive marketing texts. The existence of an EBR from a past purchase does not satisfy this strict requirement. So, unless you specifically agreed to receive marketing texts, those messages are likely illegal.

What counts as an "inquiry" to create a business relationship?

An inquiry that creates an established business relationship must be initiated by you, the consumer. It involves you actively reaching out to a business to request information about its products or services. Common examples include filling out a form on a website to get an insurance quote, calling a company's customer service line to ask questions, or submitting an application for a service like a credit card or loan. This interaction creates a short-term, three-month EBR. Simply visiting a company's website or receiving a marketing email from them does not count as an inquiry initiated by you. The key is that you took a deliberate step to engage with the business.

Is a TCPA established business relationship the same as consent?

No, they are two distinct legal concepts. An established business relationship is a defense created by the FCC that can excuse a company from certain TCPA requirements in very limited situations, primarily for informational calls or calls to landlines. Consent, particularly "prior express written consent," is a higher standard that represents your affirmative permission for a company to contact you. For autodialed marketing calls and texts to your cell phone, the law requires this higher level of consent. An EBR is an implied relationship, whereas written consent is an explicit agreement. Companies cannot use an old EBR to override the need for explicit written consent for modern mobile marketing.

Can a company share my "business relationship" with its partners?

Generally, no. The established business relationship you have is with the specific company you directly interacted with. That company's corporate affiliates, subsidiaries, or third-party marketing partners cannot "borrow" or "inherit" your EBR to start calling or texting you. For example, if you have a mortgage with a bank, that bank's insurance partner cannot start sending you automated texts claiming an EBR. They would need to establish their own relationship with you or, more likely, obtain your prior express written consent. This prevents your initial interaction with one company from opening the floodgates to spam from an entire network of associated businesses.

TLDR

Submit your spam screenshots for attorney review

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