SMS marketing is effective, but it comes with strict rules in Australia. The law treats text messages as direct marketing which means businesses need to follow clear standards around consent, identification, and the ability for people to opt out. When these rules are ignored or missed, complaints quickly roll in and your business could face fines or other sanctions. Getting the basics right protects your business, and your relationship with your customers. Let’s look at the steps you need to take to be compliant with Australian laws.
Valid Consent
You need a customer’s clear permission before sending any marketing SMS. When you collect this consent, it should be easy for them to understand what they’re consenting to. A sign-up form or check out page works as long as the person actively opts in. Pre-ticked boxes don’t qualify, the person needs to tick the box themselves. You should keep records showing when and how someone agreed to receive messages in case the consent is questioned.
Identify Your Business
Every marketing SMS you send must make it clear who sent it. Your recipient should see your business name and have a way to contact you if they need to. This still applies if you use a third-party company or software, like Welcorp, to send the messages on your behalf. It’s your company that needs to be identified, and your responsibility to make sure the company or software you’re using is compliant. If the content is promoting your business, it’s your business that needs to be identified.
Make Opt-Out Simple
The opt-out requirement is where businesses often fall short. People must be able to stop messages easily, usually by replying with a short word like “STOP” or by using a link that processes the request. The opt-out request must be free (or no more than the standard messaging cost) and not require the person to log in, create an account, or provide additional personal information. The opt-out request must be processed within five days of the request and marketing messages stopped. The opt-out option must also remain active for at least thirty days after the message is sent. A broken link or inactive reply number still counts as a compliance failure.
Welcorp has recently made it even easier to receive an opt-out function in your 2-way SMS marketing messages by implementing default setting to allow for key words to trigger an output, even if undefined in the SMS and key word setup.
This is in addition to a simple check box and field that allows you to select if your message needs to include the opt-out, and to nominate a unique opt-out code.
Go the Extra Mile
Following the law is obviously essential, but best practice goes further than the minimum. Going beyond the minimum helps your company build trust with your customers and grows your reputation. Clear wording for consent helps your customers understand what they’re signing up for which helps to reduce complaints. You should also separate service updates from promotional or marketing messages. Once a message contains marketing it should be treated as marketing material and follow the compliance laws for marketing messages. Ensure everyone sending marketing messages for your company is using the same list of contacts, this reduces the risk of accidental messages to people that have opted out due to someone using an old or out of date list. If you’re using a third-party platform check that its unsubscribe tools work properly, ultimately, it’s the responsibility of your business to ensure you’re compliant.
Don’t get it wrong
Getting it wrong can result in regulators issuing penalties, but the bigger cost is damage to your reputation. Customer trust is important and can be lost quickly if they can’t stop unwanted messages. When your SMS marketing respects consent and makes opting out easy your business builds credibility and trust with your customers.
Want to ensure your marketing messages are compliant? Utilise a trusted messaging platform like Welcorp.
