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Understanding the TCPA Established Business Relationship Rule

The TCPA established business relationship (EBR) rule is a key exception under the Telephone Consumer Protection Act, but it is narrow and often misunderstood by businesses. It generally allows a company to place certain types of calls to consumers with whom it has a prior relationship, even without express consent. However, this exception is not a blanket permission slip for spam. Violations of the TCPA can be costly for businesses, potentially entitling you to statutory damages of $500 for each illegal call or text, and up to $1,500 per violation if the company acted willfully or knowingly. Understanding the limits of the EBR is crucial for protecting your privacy and holding companies accountable. Many businesses incorrectly cite an EBR to defend illegal marketing texts, creating an opportunity for consumers to seek compensation.

What is an Established Business Relationship Under the TCPA?

The term "established business relationship" is specifically defined by the Federal Communications Commission (FCC), the agency tasked with implementing the Telephone Consumer Protection Act (TCPA). According to the regulations, an EBR is a prior relationship formed by a voluntary two way communication between a person and a business. Critically, the relationship must be based on either a specific transaction or a consumer inquiry. The existence of an EBR can, in very limited circumstances, exempt a business from certain do not call provisions. It is not, however, a loophole to send you marketing text messages without your explicit permission. This article is for informational purposes only and does not create an attorney-client relationship.

There are two distinct types of established business relationships, each with its own time limit:

  1. Transactional Relationship: This is the most common form of an EBR. It is created when a consumer purchases, rents, or leases goods or services from a company, or completes any other financial transaction with them. For example, if you buy a product online, sign up for a subscription service, or take out a loan, you have created a transactional EBR. This type of relationship allows the company to contact you for a period of up to eighteen (18) months after the date of the last transaction. This 18 month clock resets every time you make a new purchase or payment.

  2. Inquiry-Based Relationship: This type of EBR is formed when a consumer makes an inquiry or submits an application regarding a company's products or services. For instance, if you call a car dealership to ask about a vehicle's price, fill out a web form for an insurance quote, or apply for a credit card, you establish this kind of relationship. The time window for an inquiry based relationship is much shorter. A company can only use this as a basis for contact for up to three (3) months from the date of your inquiry. This short duration reflects the more tentative nature of the consumer's interest compared to an actual transaction.

It is vital to remember that these time limits are absolute. Once the 18 month or 3 month period expires, the established business relationship is legally considered terminated for the purposes of telemarketing. Any calls or texts sent after that point, without new consent, could be a violation of the TCPA.

How the EBR Exception Interacts with Consent Requirements

A major point of confusion for both consumers and businesses is how the EBR exception affects the TCPA's strict consent rules, particularly for cell phones. The reality is that the exception is extremely narrow. The EBR rule primarily provides a defense for companies making prerecorded informational calls to residential landlines that are listed on the National Do Not Call Registry. It does not provide a defense for autodialed or prerecorded marketing calls and texts sent to wireless numbers. This is the single most important takeaway for consumers who are receiving unwanted mobile spam.

For marketing messages sent to your cell phone using an autodialer or a prerecorded voice, the TCPA requires a company to have your "prior express written consent." This is a much higher standard than an EBR. As defined by the FCC, this type of consent must be a written agreement that is clear, conspicuous, and unambiguous. It must state that you agree to receive marketing messages from a specific seller using an autodialer or prerecorded voice, and it must also inform you that agreeing is not a condition of purchasing any goods or services. You can learn more about this high standard in our guide to The TCPA One to One Consent Rule Explained (2024).

Therefore, even if you recently bought a product from Company X, creating a valid 18 month EBR, they cannot legally start sending you automated marketing texts or robocalls just because you are a customer. They still need to obtain your separate, explicit, written permission to send those marketing messages to your cell phone. Where the EBR might apply is in the context of non marketing, informational messages. For example, a pharmacy may be able to send an automated call to your landline about a prescription refill under an EBR, but they cannot send you automated promotional texts about a sale on vitamins without your written consent. Many companies fail to understand this distinction, leading to widespread violations and significant penalties, as seen in the public data on the TCPA Settlement Tracker.

When a Company's EBR Defense is Invalid

Even when a company believes they have a valid established business relationship, their defense against a TCPA claim can be invalid for several reasons. The protections afforded by an EBR are not permanent and can be terminated by either the passage of time or direct action from you, the consumer. Understanding these limitations is key to identifying when a company has crossed the line from permissible contact to illegal spam.

First and foremost, you have the absolute right to revoke consent at any time. If you tell a company to stop contacting you, any EBR they claimed to have is immediately nullified for telemarketing purposes. This can be done by saying "stop calling me" on a phone call or, more commonly for text messages, by replying with words like "STOP," "UNSUBSCRIBE," "CANCEL," or "QUIT." The FCC has made it clear that companies must honor these opt out requests in a reasonable amount of time, typically interpreted as within 10 business days. If a company continues to send you marketing messages after you have told them to stop, they are likely violating the TCPA, and each subsequent message could entitle you to damages. You can submit your evidence for a free case review if this has happened to you.

Second, as discussed previously, the EBR is time sensitive. A transactional relationship expires 18 months after your last payment or purchase. An inquiry based relationship expires just 3 months after you first reached out. A company that contacts you outside of these windows cannot legally rely on the EBR exception. They would need new consent from you to continue marketing communications. Many businesses fail to track these dates accurately in their customer relationship management (CRM) systems, leading to compliance failures and potential lawsuits.

Finally, the relationship's scope matters. The EBR must exist with the specific entity that is contacting you, not its affiliates or partners, unless you provided consent for them to contact you as well. Furthermore, the EBR defense can be invalidated if the company contacts the wrong person. For example, if you get a new phone number that previously belonged to someone who had an EBR with a company, that relationship does not transfer to you. If the company continues to text that number, they could be liable for TCPA violations as explained in the rules for the TCPA Reassigned Number Safe Harbor.

Real Examples of EBR Violations

Sometimes, seeing a concrete example can clarify how a company's reliance on a TCPA established business relationship can be misplaced. Here are a few realistic scenarios where a company might illegally contact a consumer despite a pre existing relationship.

Example 1: The Expired Relationship

Imagine you purchased a sofa from "Supreme Furniture" two years ago. You haven't bought anything from them since. One day, you receive this text message:

Supreme Furniture: It's been a while! Your living room deserves an upgrade. This week only, past customers get 30% off all new arrivals. See our catalog: [link]

In this case, the transactional established business relationship you formed when you bought the sofa expired 18 months after the purchase. Since it has been 24 months (two years), Supreme Furniture can no longer rely on that old relationship to send you telemarketing texts. Unless you separately provided them with prior express written consent to receive marketing texts, this message would likely be a violation of the TCPA.

Example 2: Marketing Texts Without Written Consent

Let's say you used a website called "Quick Mortgage Quotes" to check potential interest rates six weeks ago. You provided your phone number to get the quote. Now, you get this message:

XYZ Lending: Great news! Rates just dropped. Now is the perfect time to refinance. Let one of our loan officers help you save thousands! Call us at 800-555-1234 or reply YES for a call back.

Here, you did create an inquiry based EBR with Quick Mortgage Quotes, which lasts for 3 months. However, that EBR does not give them permission to send you automated marketing text messages. For that, they needed your prior express written consent in a clear and conspicuous disclosure when you submitted the form. Simply providing your number to receive a quote is not the same as agreeing to receive ongoing promotional texts. This is a very common TCPA violation.

How to Check Your Phone for Violations

Many people are sitting on evidence of TCPA violations right in their pocket and don't even realize it. Companies that misuse the established business relationship rule often leave a digital trail that can be used to build a case. Taking a few minutes to audit your text message history can be a financially rewarding exercise. If you find violations, you may be able to submit a claim for compensation.

Start by opening your phone's messaging application. Use the search function to look for keywords that indicate an opt-out attempt. The most effective word to search for is "STOP." This will pull up every conversation where you have tried to unsubscribe from a sender's messages. Carefully review these threads. Did the sender stop messaging you immediately after you replied STOP? If they sent you even one more marketing message after your opt-out request (allowing for a reasonable processing time), they may have violated the TCPA.

Next, expand your search. Look for common marketing terms like "sale," "deal," "offer," "discount," or "congratulations." This can help you identify promotional messages from businesses you may have forgotten about. For each promotional message you find, ask yourself a few questions. Did I give this specific company express written permission to text me marketing offers? When was the last time I actually did business with them? If it was more than 18 months ago, or if you only ever inquired without buying, their texts might be illegal.

When you find a potential violation, it is crucial to preserve the evidence. Take clear screenshots of the conversation. Make sure the screenshots show the sender's phone number or short code, the content of the messages, and the dates and times they were sent. This documentation is the most important piece of evidence you will have if you decide to pursue a claim.

Check Your Phone Right Now

Here is a simple action you can take in the next 60 seconds to find potential TCPA violations on your own phone.

Open your messages and search the word STOP.

Did any company continue to text you after you sent that message? The TCPA requires businesses to honor opt-out requests. If a company sent you even one more marketing text after you replied STOP, they may have broken the law. Each of those messages could be worth $500 to $1,500 in statutory damages.

Even texts that contain the phrase "Reply STOP to unsubscribe" can be illegal if you never gave the sender permission to text you in the first place. Don't dismiss these messages as simple annoyances. They could be your ticket to compensation. Collect your screenshots and see if you have a claim.

Submit screenshots at SpamClaims.com

Frequently Asked Questions

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

An Established Business Relationship (EBR) and prior express written consent are two different standards under the TCPA that are often confused. An EBR is a limited exception based on a consumer's past transaction or inquiry, which primarily allows for informational prerecorded calls to landlines. It expires after 18 months for a transaction or 3 months for an inquiry. In contrast, prior express written consent is a much higher bar. It is required for all autodialed or prerecorded marketing calls and texts sent to a cell phone. This consent must be in writing, be clear and conspicuous, and state that the consumer agrees to receive marketing messages from a specific company, and is not a condition of purchase. An EBR is not a substitute for this written consent for cell phone marketing.

Does buying something from a company give them permission to text me forever?

No, absolutely not. Buying a product or service from a company creates a transactional established business relationship, but this relationship has strict limits. For telemarketing purposes, this EBR expires 18 months after the date of your last transaction or payment. After that 18-month window closes, the company cannot legally contact you based on that past relationship. More importantly, the EBR itself does not give the company permission to send you automated marketing texts to your cell phone in the first place. For that, they need your separate prior express written consent. So, even within the 18 months, their marketing texts could be illegal if you never explicitly agreed in writing to receive them.

How do I stop a company from contacting me under the EBR rule?

You have the absolute right to revoke any permission a company believes it has under an EBR. You can do this at any time and through any reasonable means. For phone calls, you can simply state during a call, "Please put me on your do not call list." For text messages, the easiest and most effective method is to reply with a standard opt-out keyword like "STOP," "UNSUBSCRIBE," or "END." Once you make this request, the company is legally required to cease contact. Any EBR they may have had is terminated, and if they contact you again for marketing purposes, they are likely violating the TCPA.

Can I still sue if I had a business relationship with the company?

Yes, you absolutely can. Having a past or even current business relationship with a company does not give them a free pass to violate the TCPA. You may have a valid claim if the company sent you automated marketing texts or robocalls to your cell phone without your prior express written consent. You may also have a claim if they continued to contact you after you told them to stop, or if they contacted you for marketing purposes after the 18-month (transaction) or 3-month (inquiry) EBR window had expired. The existence of a business relationship is often used incorrectly by companies as a defense, but the law's protections for consumers are very specific and strong.

TLDR

Submit your spam screenshots for attorney review

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