tcpa_law · 11 min read

Decoding the TCPA Established Business Relationship Exception

The TCPA established business relationship (EBR) is a key concept that companies often use to defend against claims of illegal telemarketing. This rule creates a limited exemption allowing businesses to make certain solicitation calls to consumers with whom they have a recent history. However, this exemption is narrow and frequently misunderstood, and it does not provide a blanket permission to send you marketing texts or robocalls. If a company violates the Telephone Consumer Protection Act (TCPA), you may be entitled to recover $500 for each violation, a figure that can increase to $1,500 if the violation was willful. Understanding the limits of the TCPA established business relationship is crucial for protecting your privacy and asserting your rights against unwanted corporate communication.

What Is the TCPA Established Business Relationship (EBR) Exemption?

The established business relationship, or EBR, is not found in the original text of the TCPA itself but was created by the Federal Communications Commission (FCC) through its rulemaking authority. It serves as an affirmative defense for companies accused of violating the TCPA's Do Not Call list provisions. The core idea is that if you have recently done business with or inquired with a company, they have a limited, temporary right to contact you for marketing purposes, even if your number is on the National Do Not Call Registry. This TCPA exemption for businesses is designed to allow for natural commercial follow-up without being overly restrictive.

There are two distinct ways an EBR can be formed, each with its own specific time limit. The first is a transaction-based relationship. This is created when you purchase, rent, or lease goods or services from a company. This type of EBR lasts for eighteen (18) months from the date of your last transaction with the business. For example, if you buy a product online, the seller has an 18-month window to make certain types of marketing calls to you.

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 or calling to ask about service availability. This form of EBR is much shorter, lasting only three (3) months from the date of your inquiry. After this period, the company can no longer rely on that specific inquiry to justify making solicitation calls to you.

It is critical to understand that the EBR primarily provides a defense against violations of the Do Not Call Registry for live, manually dialed telemarketing calls or prerecorded calls made to residential landlines. As we will see, its power is significantly diminished when it comes to modern communication methods like automated text messages and robocalls to your cell phone. The existence of an EBR does not automatically grant a company the right to use an autodialer to contact your mobile device for marketing purposes.

How the EBR Interacts with Autodialers and Marketing Texts

This is where the rules become much stricter and where many companies make costly mistakes. The rise of mobile phones and automated text messaging led to updates in TCPA regulations that require a higher level of consent for most marketing communications to wireless numbers. For marketing calls or texts sent to your cell phone using an automatic telephone dialing system (ATDS) or a prerecorded voice, a simple EBR is not enough. Instead, the law requires a company to obtain your "prior express written consent."

Prior express written consent is a much higher bar to clear than an EBR. It must be a written agreement, signed by you, that clearly authorizes the seller to deliver advertisements or telemarketing messages using an autodialer or prerecorded voice to a specific number you provide. The disclosure must also inform you that you are not required to provide this consent as a condition of purchasing any property, goods, or services. This consent is often obtained through website forms with checkboxes, but the language must be specific and unambiguous.

Therefore, even if you have a valid EBR with a company because you bought something last year, they cannot legally start sending you automated promotional texts unless they have also secured your prior express written consent. Many consumers are surprised to learn this, assuming that any business relationship allows for all forms of contact. A company that sends marketing texts based only on an EBR is likely violating the TCPA, and each text could represent a separate violation worth hundreds or even thousands of dollars.

Furthermore, your consent is never permanent. You have the right to revoke your consent at any time and through any reasonable means. If you tell a company to stop calling or texting, they must honor that request. A common and effective method is replying "STOP" to a marketing text. Once you have revoked consent, any subsequent marketing calls or texts from that company could be a violation, regardless of whether a TCPA established business relationship ever existed.

When a Business Relationship Does NOT Protect a Company

Many businesses overreach and mistakenly believe an EBR gives them unlimited rights to contact you. There are several clear scenarios where the EBR defense will fail, leaving the company exposed to TCPA liability. Understanding these situations can help you identify potential violations you have received. If you suspect a company has crossed the line, you may have a strong case for compensation. You can submit evidence of violations at SpamClaims.com for a free case evaluation.

The most straightforward limitation is time. An inquiry-based EBR expires after three months, and a transaction-based EBR expires after eighteen months. Any solicitation calls made after these deadlines are not protected by the relationship. For example, a car dealership you bought a car from two years ago cannot legally call you today to market a new vehicle based solely on that past sale. That 18-month window has closed, and they would need new consent or a new transaction to re-establish it.

Another critical limit is the scope of the relationship. An EBR is specific to the company with which you directly interacted. It does not extend to their corporate affiliates, partners, or parent companies. If you have a business relationship with "ABC Car Sales," that does not give "ABC Auto Insurance" the right to start calling you. They are separate legal entities, and you have no EBR with the insurance arm of the business.

Most importantly, as discussed previously, the EBR defense is largely irrelevant for autodialed marketing texts and prerecorded calls to your cell phone. The requirement for prior express written consent for these communications is a separate, more stringent rule. A company relying only on an EBR to send you daily promotional texts via an automated system is almost certainly in violation of the TCPA. Similarly, if you have placed your number on a company’s internal do-not-call list or have explicitly told them to stop contacting you, they must comply, ending any privileges an EBR may have provided.

Damages and Your Rights Under the TCPA

The TCPA empowers consumers to fight back against illegal calls and texts by providing for statutory damages. For each violation of the act, a consumer can sue to recover their actual monetary loss or $500, whichever is greater. Since it is often difficult to prove actual monetary loss from a single spam text, courts almost always award the $500 in statutory damages per illegal call or text.

This amount can increase significantly if the company's actions are found to be willful or knowing. If you can prove that the company knew they were breaking the law or recklessly disregarded it, the damages can be tripled to $1,500 per violation. A company that continues to text you after you've replied "STOP" is a classic example of a willful violation. These damages can add up quickly, turning a series of annoying texts into a substantial legal claim. For more details on this, you can read our guide on how to secure TCPA willful violation damages.

Consumers generally have four years from the date of the violation to file a lawsuit under the TCPA. This generous statute of limitations means you can look back through your call logs and text messages for evidence of violations that occurred years ago. Every single illegal call and text message within that four-year window counts as a distinct violation, each carrying its own potential for a $500 to $1,500 penalty. Keeping good records is essential for building a strong case.

The potential for these financial penalties is a major incentive for companies to comply with the law. When they fail to do so, pursuing a claim not only offers you a chance at financial recovery but also holds businesses accountable for their intrusive marketing practices. You can see examples of how these cases play out by viewing our TCPA Settlement Tracker, which documents major class action settlements. This article is for informational purposes only and does not create an attorney-client relationship.

Real Examples of Violations

To better understand how these rules apply in the real world, let's look at a few common scenarios where a company's claim of an established business relationship would likely fail.

"Hi Sarah, it's John from XYZ Lending. We saw you requested a mortgage quote from us a few months back. Rates have dropped again! Are you free this week to discuss refinancing options? Text back to connect."

In this example, your inquiry for a mortgage quote created a three-month, inquiry-based EBR. If this text was sent four months after your initial quote request, the EBR has expired. The contact is now an unsolicited telemarketing text, and if sent using an automated platform without your prior express written consent, it is a clear TCPA violation.

"ABC FASHION WEEKEND SALE! All jeans BOGO 50% off. You shopped with us in 2021, so we're giving you early access! Show this text in-store. Txt STOP to end."

Here, the purchase you made in 2021 created an 18-month, transaction-based EBR. If this text arrives more than 18 months after that purchase, the relationship has lapsed. Furthermore, even if it were within the 18-month window, sending an automated promotional text like this to a cell phone requires your prior express written consent, which the EBR alone does not provide. Unless you explicitly agreed to receive marketing texts, this message is likely illegal.

"Great news from Premier Auto Group! As a valued customer of Premier Motors, you're pre-qualified for an extended warranty from our partner, Premier Protection Plans. Call us now to lock in your rate!"

This message illustrates the limits of the EBR's scope. Your business relationship is with "Premier Motors," the dealership where you bought your car. It does not extend to their separate business partner, "Premier Protection Plans." The warranty company is a third party with whom you have no EBR. Therefore, their telemarketing call or text is a violation if you are on the Do Not Call list or if it was sent to your cell phone using an autodialer without your consent.

How to Check Your Phone for Violations

You may be sitting on evidence of TCPA violations right now. It is worth taking a few minutes to search your phone's history for illegal communications from businesses that may have improperly relied on a past business relationship.

First, open the messaging application on your smartphone. Use the search bar at the top to look for common marketing keywords. Try searching for terms like "STOP," "unsubscribe," "offer," "deal," "promo," "sale," or "limited time." These searches can quickly surface promotional texts you may have forgotten about.

Next, as you review the search results, pay close attention to the sender and the date. Do you recognize the business? More importantly, when was the last time you actually did business with them? If you received a marketing text from a company you haven't purchased from in over 18 months, or one you only made an inquiry with more than 3 months ago, flag it as a potential violation.

When you find a suspicious text, take a clear screenshot. Make sure the screenshot captures the following essential details:

Finally, save these screenshots in a dedicated folder on your phone or computer. Create a simple log noting the sender's name or number and the date of each message. This organized evidence is incredibly valuable when it comes to building a case and proving a pattern of abuse.

Check Your Phone Right Now

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

Open your messages and search the word STOP.

This search will show you every conversation where you have tried to opt out of marketing messages. Look closely at the results. Did any company continue to send you marketing texts after you replied with "STOP"? If so, every single text they sent after your opt-out request is a potential willful violation of the TCPA, which could be worth up to $1,500.

Even if you never replied STOP, the initial text messages themselves may be illegal. Remember, a company needs your prior express written consent to send you marketing texts using an autodialer. The fact that you bought something from them years ago is not enough. If you find texts from companies you don't remember giving explicit permission to, you may have a claim. Gather your screenshots and let us help you figure it out.

Submit screenshots at SpamClaims.com

Frequently Asked Questions

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

No, it does not. Buying a product or service creates a transaction-based established business relationship that lasts for 18 months. This provides a limited TCPA exemption for businesses, allowing some types of solicitation calls. However, it absolutely does not grant permanent permission, nor does it override the stricter rules for automated marketing. For a company to legally send you marketing texts to your cell phone using an autodialer, they need your prior express written consent. After 18 months, the EBR expires completely, and any further contact would require a new transaction or new consent.

What if I only gave a company my number for a quote?

Providing your number for a quote or another inquiry creates an inquiry-based established business relationship. This type of EBR is much shorter than one based on a transaction, lasting only three months from the date of your inquiry. During this 90-day window, the company has a limited defense if they make certain telemarketing calls to you. However, just like with a transaction-based EBR, this does not give them permission to send you autodialed marketing texts to your cell phone. For that, they still need your separate, prior express written consent. After three months, the EBR is gone.

How do I prove a company violated the TCPA after my business relationship ended?

Proving a violation comes down to evidence. The best evidence you can have is a collection of screenshots from your phone that clearly show the text messages, the sender's number, and the dates they were received. You should also keep any records you have of your last transaction or inquiry with the company, such as email receipts or confirmation pages. This helps establish the timeline and proves that the contact occurred after the 18-month or 3-month EBR window had closed. This evidence is foundational for building a legal claim and is often scrutinized during TCPA discovery requests if a case proceeds.

Can a company share my number with its partners because of our business relationship?

Generally, no. An established business relationship is not transferable. It exists only between you and the specific legal entity with which you conducted business. That company cannot sell or share your contact information with its affiliates, parent companies, or marketing partners and pass along its EBR status. If a different company, even a closely related one, starts contacting you, they are starting from scratch. They must independently have your consent or their own EBR with you to make solicitation calls, and they still need your prior express written consent for autodialed marketing texts to your cell.

What's the difference between an EBR and an informational call?

An established business relationship is a concept that relates directly to telemarketing and solicitation calls. It acts as an exemption to the Do Not Call rules. Informational calls, on the other hand, are non-marketing communications like appointment reminders, fraud alerts, or package delivery notifications. These calls are treated differently under the TCPA and generally do not require the same level of consent as marketing calls. However, the line can sometimes be blurry, as a call can contain both informational and marketing content. The rules surrounding this are complex, as detailed in our guide to the TCPA informational call exception.

TLDR

Submit your spam screenshots for attorney review

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