Reaching out to customers after the sale is a routine part of running a dealership. Follow-up calls on financing, service reminders, marketing outreach, and many others are normal business activities, but the rules around how you make contact are anything but simple.
Major regulations, like The FTC’s Telemarketing Sales Rule and FCC’s Telephone Consumer Protection Act (TCPA), impact how, when, and why you can contact customers. This extends to phone calls, prerecorded voicemails, text messages, and fax communications. And because each contact can be treated as a separate violation, exposure adds up fast. Settlements in this space have reached into the millions.
Not all contacts carry the same risk
Following up on service or determining customer satisfaction is generally acceptable and potentially covered by the Servicing and Collection Contract provision in the LAW® 553® Retail Installment Sale Contract.
However, if you’re contacting customers for sales and marketing purposes, you shouldn’t rely solely on a provision tucked away in larger contracts for protection. Using a dedicated consent document is a straightforward way to help protect your business and keep your staff and customers on the same page regarding communication.
What is the risk?
Let’s set the stage:
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TCPA penalties range from $500-1500 per violation
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Nearly 80% of TCPA cases are class actions
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TCPA class action lawsuits increased significantly between 2024 and 2025
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A recent FCC rule requires honoring consumer consent reversals within 10 days
Taking these things into consideration, along with the knowledge that “per violation” can mean every individual communication (as in, every single text, for example), it’s easy to see how penalties can easily get into the hundreds of thousands and even millions.
The point – TCPA violations are costly, agencies are actively updating rules, and TCPA is an attractive target for litigators.
Use the document crafted for the job
The LAW® Contact Authorization document is designed to collect buyer consent for a range of contact purposes, including marketing and promotions. Getting this separate signature on a dedicated document does more than just check a compliance box. It also gives you the opportunity to explain the advantages of receiving sales communications so that buyers value them instead of just tolerating or ignoring them.
In TCPA litigation, the burden of proof falls on you. Using a dedicated consent document provides a keystone in your defense should you find yourself subject to a lawsuit.
Visit the link below to learn more, request your free F&I Document Review, and gain confidence in your compliance.