FCC Proposes New Rules to Crack Down on Scam Texts

On February 17, 2023, the Federal Communications Commission (FCC) proposed new rules to crack down on scam texts. The proposed rules aim to protect consumers from fraudulent and unwanted text messages and to ensure that legitimate businesses can continue to send messages to their customers.

Background

Text messaging has become an increasingly popular way for businesses to communicate with their customers. However, the rise in text messaging has also led to an increase in scam texts. According to the FCC, Americans received more than 4.5 billion scam texts in 2022, a 50% increase from the previous year. These scam texts can be used to steal personal information, install malware on devices, or trick people into giving away money.

The FCC has been working to combat scam texts for several years. In 2018, the commission adopted rules that allow phone companies to block certain types of text messages, including those that are fraudulent or unwanted. The commission also created a database of phone numbers that have been reported as sources of spam and scam texts. Phone companies can use this database to block messages from those numbers.

The Proposed Rules

The FCC’s proposed rules would build on the commission’s previous efforts to combat scam texts. The proposed rules would:

• Require phone companies to implement technology to authenticate the sender of text messages. This would help to prevent scammers from using fake phone numbers to send text messages.
• Require phone companies to block text messages from phone numbers that are not authenticated. This would help to ensure that only legitimate businesses can send text messages.
• Allow consumers to opt out of receiving text messages from businesses. Businesses would be required to provide an opt-out mechanism in their text messages.
• Require businesses to obtain express written consent before sending text messages to consumers. This would help to ensure that consumers are only receiving messages that they have agreed to receive.
• Strengthen the penalties for violating the rules. The proposed rules would increase the fines for violating the rules and would allow the FCC to revoke the ability of phone companies and businesses to send text messages if they repeatedly violate the rules.

What the Proposed Rules Mean for Consumers

The proposed rules are good news for consumers who are tired of receiving scam texts. If the rules are adopted, consumers can expect to receive fewer unwanted text messages and can be more confident that the messages they do receive are from legitimate businesses. The opt-out mechanism will give consumers more control over the messages they receive, and the requirement for express written consent will ensure that consumers are not receiving messages that they do not want.

What the Proposed Rules Mean for Businesses

The proposed rules may be more challenging for businesses that use text messaging to communicate with their customers. The requirement for express written consent may make it more difficult to build a list of customers who are interested in receiving text messages. However, businesses that follow the rules will be able to continue to use text messaging as a way to communicate with their customers, and they may even benefit from the increased trust that comes with following the rules.

Conclusion

The FCC’s proposed rules to crack down on scam texts are an important step in protecting consumers from fraudulent and unwanted text messages. The rules would require phone companies to implement technology to authenticate the sender of text messages, allow consumers to opt out of receiving text messages from businesses, and require businesses to obtain express written consent before
sending text messages to consumers. If the rules are adopted, consumers can expect to receive fewer unwanted text messages and can be more confident that the messages they do receive are from legitimate businesses. While the rules may pose challenges for businesses that use text messaging to communicate with their customers, those that follow the rules will be able to continue to use text messaging as a way to communicate and may even benefit from increased trust from their customers.

It is important to note that the proposed rules are not yet final and may be subject to change based on feedback from stakeholders and the public. The FCC is currently seeking comments on the proposed rules, and interested parties can submit comments through the FCC’s website.

In conclusion, the FCC’s proposed rules to crack down on scam texts are a positive development for consumers and businesses alike. By requiring phone companies and businesses to follow certain rules and regulations, the FCC is working to protect consumers from fraudulent and unwanted text messages while still allowing legitimate businesses to communicate with their customers. If the rules are adopted, consumers can be more confident in the text messages they receive, and businesses can continue to use text messaging as a valuable tool for communication.
It is important for businesses to start preparing for these proposed rules by reviewing their current text messaging practices and ensuring that they are in compliance with the rules. Businesses should start obtaining express written consent from customers before sending text messages and provide a clear opt-out mechanism in their messages. Additionally, businesses should be aware of the potential penalties for violating the rules and take steps to avoid any violations.

As technology continues to evolve, so too will the tactics used by scammers to target consumers. It is therefore crucial that regulators such as the FCC stay vigilant and adapt their rules and regulations to keep up with these changes. The proposed rules are a step in the right direction, but more work needs to be done to ensure that consumers are fully protected from all forms of scam texts.

In conclusion, the FCC’s proposed rules to crack down on scam texts are an important development in the fight against fraudulent and unwanted text messages. By requiring phone companies and businesses to follow specific rules and regulations, the FCC is taking a significant step towards protecting consumers from harmful text messages. Businesses should start preparing for these rules now to ensure compliance and maintain their ability to communicate with their customers effectively. With continued efforts from regulators and businesses alike, we can create a safer and more secure text messaging environment for everyone.