How are companies sending all those SMS messages illegally?

Last month the Information Commissioner issued enforcement notices to two companies that violated regulations by sending marketing text messages to people who had not agreed to receive them.
Help Direct UK sent SMS messages regarding people’s pension values. The text implied that by replying, people would get help in recovering money lost over the last few years. An investigation into the 659 complaints received revealed the company had sent 187,960 SMS messages over nine months covering a variety of financial topics.
The other company, Sweet Media Ltd, sent 4.5 million marketing messages over a period of 8 months. The ICO received 796 complaints before issuing the warning. The details of the messages are not mentioned in the enforcement notice, but Sweet Media is a Lead Generation company according to the Information Commissioner Office (ICO).
How can these companies send so many SMS messages without prior permission? Well, they generally buy lists of mobile numbers. Even though regulations have changed so you aren’t supposed to send email or text messages (or any “electronic communication”) to those who haven’t asked for them, there are still companies out there selling the lists. Those that buy them are either unaware of the rules, or don’t care about them.
So while it might be tempting for you to buy a list of mobile numbers to get your SMS marketing campaigns started, don’t do it.
The first good reason not to do that is you’ll be added to the list of companies receiving enforcement notices. That’s because when you send marketing texts to people who didn’t ask to receive them, they will complain to the ICO. The investigation will then result in a notice to you to stop sending text messages to people without permission. If you want to know more about the regulations, you can find them on the ICO website.
The second good reason is that it just isn’t good marketing. One of the huge benefits of SMS marketing is that you have a fairly captive, and interested, audience after they choose to opt in to your offers. Unlike email, with low open and conversion rates, SMS isn’t about having the biggest list. It’s about having people choose to receive your messages, which means they will be more interested in your offers than a bunch of random people. In the end, you send less messages, therefore spend less money, and have a higher ROI because your offers are exactly what your list members signed up to receive.
If you have questions about how to grow your list legally, just give us a call or grab us in our live chat. We’re happy to help you build a list that fits your business, and keeps you out of trouble.
Related Articles
Proof SMS Messaging Gets Results: Giveaways and Contests
Companies use contests and giveaways all the time. It turns out that doing them over SMS messaging works really well, and offers some advantages over other channels. Read our blog to see the types of results various companies achieved when using SMS giveaways.
ICO issues a huge fine for massive illegal SMS campaign
ICO, the Information Commissioner's Office, has recently imposed a huge fine on direct marketing company Help Direct UK for sending illegal SMS messages.
5 Key Points to Ensure Your SMS Marketing is GDPR Compliant
4 Simple Steps to Staying Compliant When Using SMS Messaging
Yet another company (Quigley and Carter Limited) have been fined by the ICO for not having permission to send SMS messages. In this case, they had outsourced their marketing to a third party who then sent messages on their behalf. So is staying compliant with the regulations regarding SMS messaging so difficult? It doesn’t have to be.
3 Reasons Why Enterprises Shouldn’t Build Their Own SMS Gateways
Enterprises are large companies. Sometimes that means they think they should be able to do everything themselves. But when it comes to SMS messaging, building an in-house gateway is more difficult than you might think. Read why finding a good SMS service provider is a better option.
Why Finance Companies Should Excel at SMS Messaging
One of the most interesting use cases for SMS messaging is the financial industry. Just a couple weeks ago I wrote a blog on 7 ways the financial industry can use SMS messaging to communicate with customers. In this blog I'll expand on the topic from a different perspective: personalisation.
Why You Need a Blacklist and What It Can Teach You
One of the major metrics in SMS marketing is how many people opt in to receive your messages. But there’s a flip side to that metric: how many people opt out. In the ideal world, no one would ever leave your list and instead continue to make purchases or support your organisation for as long as you decide to message them.
SMS Marketing – Should You Buy a List?
Starting an SMS marketing campaign can be a daunting task. Gathering explicit opt ins can take time, as you need to make an investment in advertising. So why not just get a jumpstart and buy a list of mobile numbers from an organisation that already has the opt ins? You could do that, but it’s probably harder than just getting people to opt in on their own. Here’s why.
3 Compliance Tips for Your Next SMS Marketing Campaign
When conducting an SMS marketing campaign, there are a number of compliance regulations you should be aware of, to ensure that your communications are as effective as possible, without being potentially damaging to your campaign or your business. If you're marketing to a UK market, the UK Privacy and Electronic Communications Regulations (PECR) gives clear guidelines on what falls within the rules. Here we've highlighted some key tips to ensure your next campaign is compliant, based on common questions that arise.
Small Businesses Can Succeed with SMS Marketing
Is SMS marketing a viable strategy for SMEs to grow their businesses? A recent article by a US SMS provider suggests not but we debunk that view. Read how and why Fastsms can help small businesses can succeed with SMS marketing without breaking the bank.