tcpa_law ยท 11 min read

Understanding the TCPA Established Business Relationship Exception

The TCPA established business relationship (EBR) is a narrow legal exception that companies sometimes use to justify sending you calls or texts. However, this defense has been severely limited, especially for modern marketing text messages sent to cell phones. Under the Telephone Consumer Protection Act (TCPA), you have powerful rights, and a company's claim of a prior relationship might not be enough to protect them from liability. If a company violated the TCPA by texting you without the proper consent, you could be entitled to statutory damages of $500 per violation, which can increase up to $1,500 if the violation was knowing or willful. Understanding when the EBR applies, and more importantly when it does not, is the first step toward holding illegal spammers accountable and securing the compensation you deserve.

What is the TCPA Established Business Relationship Exception?

The Telephone Consumer Protection Act is designed to protect consumers from the nuisance and invasion of privacy caused by unsolicited telemarketing. While the law sets strict rules, it also includes certain exceptions. The TCPA established business relationship (EBR) exception is one of the most frequently cited, and often misunderstood, of these provisions. In simple terms, this exception historically allowed companies to make certain types of calls to consumers with whom they had a pre-existing relationship, even without express consent for that specific call. The logic was that if a consumer had recently done business with a company, they would not consider a follow-up call to be an unwanted intrusion.

However, the scope of this exception has changed dramatically over time, particularly with the rise of text message marketing. The Federal Communications Commission (FCC), the agency that creates rules to implement the TCPA, has clarified and narrowed the application of the EBR. For telemarketing calls or texts sent to a wireless number using an autodialer or a prerecorded voice, the rules are now much stricter. The EBR exception generally does not override the need for a company to obtain your prior express written consent before bombarding your cell phone with marketing messages.

This creates a critical distinction that every consumer should understand. A company might argue that because you bought a product from them a year ago, they have an EBR and can text you about new sales. In most situations involving automated marketing texts to your mobile phone, that argument is incorrect. The TCPA prioritizes your right to control who can contact your personal devices. Therefore, a past transaction alone is rarely enough to justify ongoing, unsolicited marketing texts. The burden is on the sender to prove they had the correct level of consent, which for automated marketing texts is ironclad written permission from you.

How the Law Defines an "Established Business Relationship"

To properly analyze a potential TCPA violation, it is essential to understand how the FCC legally defines an established business relationship. The definition is quite specific and is based on a voluntary, two-way interaction between the consumer and the business. Simply receiving a piece of mail from a company or visiting their website does not create an EBR. The relationship is only formed through a concrete action on the part of the consumer, which generally falls into one of two categories: a transaction or an inquiry.

First, a relationship is formed through a purchase or transaction. When you buy a product, pay for a service, or engage in any financial transaction with a business, you establish an EBR. This relationship is not permanent. For telemarketing purposes, the FCC states this type of EBR exists for eighteen (18) months after the date of the last transaction. This means a company could, under certain limited circumstances, call you within that 18 month window. For example, if you bought a car, the dealership might have a limited basis to call you about a recall related to that car.

Second, a relationship is formed when a consumer makes an inquiry or submits an application regarding the company's products or services. If you call a business to ask about pricing, fill out a web form requesting a quote, or apply for a loan, you initiate an EBR. This type of relationship is much shorter. The FCC limits this kind of EBR to three (3) months from the date of the inquiry. After three months, the company can no longer rely on that inquiry as the basis for contacting you. It's a common scenario that can lead to illegal calls once that short window closes. These time limits are strict, and companies that ignore them may be violating the law.

When an EBR Does NOT Excuse Unwanted Texts

The single most important takeaway for consumers is that the TCPA established business relationship exception is nearly irrelevant for autodialed marketing text messages sent to cell phones. In 2013, the FCC enacted stricter rules that effectively closed this loophole for mobile marketing. The current regulations mandate that a company must have your "prior express written consent" before sending you automated marketing texts. This requirement trumps any claim of a prior business relationship. This is a critical point that many businesses get wrong, leading to widespread TCPA violations.

Prior express written consent is a much higher standard than simply having an EBR. It means you must agree, in writing, to receive marketing texts from a specific sender to a specific number. This agreement must inform you that you are not required to provide consent as a condition of purchasing any goods or services. This is why you often see checkbox disclosures on websites that say something like, "By checking this box, you agree to receive marketing text messages from XYZ Corp at the number provided." Without you taking that affirmative step, the company generally cannot legally send you marketing texts, even if you are a loyal customer. You can learn more about the specifics of TCPA consent requirements and how they protect you.

So, where does the TCPA EBR exception still apply? It mainly applies to prerecorded informational calls (not marketing calls) and telemarketing calls made to residential landlines. For example, your pharmacy might be able to use a prerecorded voice to call your landline and tell you a prescription is ready. However, the moment the message includes a marketing pitch, like "and while you're here, check out our sale on vitamins," it likely crosses the line and requires a different level of consent. For practical purposes, if you are receiving unwanted automated marketing texts on your cell phone, the sender's claim of an "established business relationship" is almost certainly not a valid defense.

Revoking Consent and Ending the Relationship

Your rights under the TCPA are not static. Even if you once had an established business relationship or even gave express consent for a company to contact you, you have the absolute right to revoke that consent at any time. A business cannot force you to continue receiving calls or texts once you have made it clear you want them to stop. The FCC has affirmed that consumers can revoke consent in any reasonable way, and the burden is on the company to honor that revocation request promptly.

The easiest and most effective way to revoke consent for text messages is to reply with standard stop language. Words like "STOP," "UNSUBSCRIBE," "CANCEL," or "QUIT" are universally understood commands that clearly communicate your intent. Once you send such a message, the sender is legally obligated to cease all further marketing texts. They are permitted to send one final, confirmatory text stating that they have received your request and will remove you from their list. Any marketing messages sent after that confirmation text could be a violation of the TCPA.

Companies must honor opt-out requests within a "reasonable time," which is generally interpreted as no more than 10 business days. Continuing to send texts after that period is a clear, and often willful, violation of your rights. It's crucial to save evidence of your STOP request. If a company ignores it, each subsequent text is another potential violation, which can significantly increase the compensation you may be entitled to. Checking the history of a company's text messages can often reveal a pattern of ignoring consumer opt-outs, strengthening a potential legal claim.

How Much Money Can You Recover for Violations?

The TCPA provides for powerful statutory damages to compensate consumers and deter illegal telemarketing. For each call or text that violates the Act, a consumer may be able to recover $500. This amount is not tied to any economic loss you suffered. The damage is the invasion of your privacy, the nuisance, and the use of your phone's resources without your permission. These damages can add up quickly. If a company sent you a series of ten illegal text messages, that could represent $5,000 in potential statutory damages.

Furthermore, the TCPA allows for the damages to be tripled if the court finds that the defendant committed the violation "willfully or knowingly." This means that for each willful violation, you could recover up to $1,500. A willful violation occurs when the sender knew they were breaking the law or showed a reckless disregard for it. A common example is when a company continues to send you marketing texts after you have clearly told them to stop by replying "STOP." Ignoring such a direct request is strong evidence that the subsequent violations were willful, justifying the higher damages. You can review detailed breakdowns of TCPA damages per text to better understand your potential claim.

Thousands of consumers have successfully recovered money from companies that disregard the law. Many of these cases are resolved in class action lawsuits, which you can see in our TCPA Settlement Tracker. Whether a company falsely claims a prior business relationship TCPA defense or ignores your opt-out request, the penalties are the same. If you believe you have received illegal texts, it is worth investigating. The law provides a clear path for you to hold these companies financially accountable. This article is for informational purposes only and does not create an attorney-client relationship.

Real Examples of Violations

Sometimes, the clearest way to understand TCPA violations is to see them in a real-world context. Here are a few examples of text messages that could be illegal, even if the sender claims a TCPA established business relationship.

Example 1: The Old Customer

ABC Solar: Hi Jane! It's been a while. Did you know federal solar rebates have been extended? We can offer you a free quote to add panels and eliminate your power bill. Reply YES for details!

In this case, Jane may have purchased a water heater from ABC Solar two years ago. The company argues this creates an EBR. However, their 18-month transaction window has closed. More importantly, this is a new marketing text sent via an automated system to her cell phone. Without Jane's prior express written consent for marketing texts, this message is likely a violation worth $500 to $1,500.

Example 2: The Inquiry That Never Ended

XYZ Lending: Great news, Tom! Rates just dropped. You were pre-qualified for up to $25k. Don't wait, finalize your personal loan now at [link]. Reply STOP to unsub.

Tom filled out a form on XYZ Lending's website five months ago to check potential interest rates but never proceeded with a loan. The company's right to contact him based on that inquiry expired after three months. Every marketing text they send after that three-month window is a potential violation of the TCPA, as the telemarketing EBR is no longer valid.

Example 3: Ignoring the STOP Request

MegaMart Deals: FRIDAY FLASH SALE! All electronics 30% off with code FLASH30. In-store and online. Sale ends midnight! Txt HELP 4 help, STOP 2 stop.

Let's say you texted "STOP" to MegaMart Deals a month ago. You even received a confirmation that you were unsubscribed. This new message is a clear violation. By ignoring your explicit opt-out request, the company's violation is likely willful, meaning you could be entitled to the maximum of $1,500 for this single text. If you have evidence of your STOP request, you may have a strong claim for compensation. You can submit screenshots at SpamClaims.com for a free case evaluation.

How to Check Your Phone for Violations

You might be sitting on evidence of TCPA violations and not even realize it. Finding this evidence is often straightforward. By taking a few minutes to search through your text message history, you can uncover potential claims and begin the process of holding illegal spammers accountable. Follow these concrete steps to check your phone right now.

First, open your phone's messaging application. Use the search function to look for keywords that are commonly found in automated marketing texts. Start by searching for terms like "STOP," "unsubscribe," "deals," "sale," or "offer." This can quickly surface messages from commercial senders. Pay close attention to any messages you received from a business after you replied with a STOP command. These are often the clearest violations.

Next, as you find suspicious messages, take clear screenshots. It is critical that your screenshot captures the following information:

After taking screenshots, save the evidence. Create a dedicated folder on your phone or computer to store the images. Also, make a simple list of the sender's names or numbers and the dates you received the messages. Having this information organized will be incredibly helpful if you decide to pursue a claim. The more detailed your records, the stronger your potential case will be.

Check Your Phone Right Now

Take a moment to check your phone for what might be the clearest evidence of a TCPA violation: a company that texted you after you told them to stop.

Open your messages and search the word STOP.

This simple search will show you every conversation where you tried to unsubscribe from a texting list. Now, look closely at the dates. Did any of those companies send you another marketing text message days, weeks, or even months after you sent your STOP request? Each one of those messages sent after you opted out could be a willful violation of the TCPA, potentially worth up to $1,500. Companies are required by law to honor your request to be left alone. When they fail, you have the right to seek compensation. Gather your screenshots and see if you have a claim.

Submit screenshots at SpamClaims.com

Frequently Asked Questions

Can a company text me forever if I bought something from them once?

No, they cannot. Buying something creates a TCPA established business relationship, but it's limited in time, lasting for 18 months from your last purchase. More importantly, for automated marketing texts sent to your cell phone, the EBR is not sufficient consent. The sender needs your prior express written consent to legally send you those messages. This means you had to affirmatively agree in writing (like checking a box online) to receive marketing texts from them. Without that specific permission, any automated marketing text they send you could be a violation, regardless of your purchase history. You also always retain the right to revoke any consent by replying STOP.

What is the difference between an inquiry and a transaction for an EBR?

An inquiry and a transaction both create an established business relationship under the TCPA, but they have different durations. A transaction occurs when you exchange money for goods or services, like buying a product or paying for a membership. This creates an 18-month EBR. An inquiry, on the other hand, is when you ask a company about its products or services, such as filling out a form for a free quote or calling to ask about pricing. An inquiry creates a much shorter EBR, lasting only three months. A company that contacts you beyond these timeframes may be violating the TCPA, especially if the contact is a marketing text to your cell phone.

Does an abandoned online shopping cart create an established business relationship?

This is a gray area, but generally, an abandoned shopping cart is not considered sufficient to create a TCPA established business relationship. While you have shown some interest, you have not completed a transaction or made a formal inquiry or application. Some companies may try to argue that it counts as an inquiry, but many courts have been skeptical of this claim. More importantly, even if it did create an EBR, that would still not be enough to satisfy the legal requirement for prior express written consent needed to send you automated marketing texts. Those "cart reminder" texts are often illegal without your explicit permission.

How long does a company have to stop texting after I reply STOP?

The FCC requires companies to honor opt-out requests within a "reasonable time." While the TCPA itself doesn't define a specific number of days, industry best practices and FCC guidance suggest that 10 business days is the outer limit of what is considered reasonable. Most legitimate companies are able to process STOP requests almost instantly. If a company continues to send you marketing texts more than 10 days after your opt-out request, they are almost certainly violating the TCPA, and those violations are likely to be considered willful, which could entitle you to up to $1,500 per text.

Can I still sue for illegal texts even if I was not charged for them?

Yes, absolutely. Your ability to recover damages under the TCPA is not dependent on whether you lost money or were charged for the text message. The law recognizes that the harm is the violation of your privacy, the nuisance of the unwanted contact, and the occupation of your personal device. The statutory damages of $500 to $1,500 per violation are set by law to compensate you for this intrusion, regardless of any other financial loss. This means you have the right to pursue a claim for illegal spam texts even if they did not cost you a single penny.

TLDR

Submit your spam screenshots for attorney review

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