SMS privacy policy templates and text message compliance
A guide to creating a compliant SMS privacy policy, including what it needs to include, and some handy templates to get you started.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Always consult with a qualified attorney for guidance tailored to your business and jurisdiction.
SMS marketing continues to be one of the most powerful tools for engaging customers directly. However, there are strict privacy regulations in place in most countries to protect consumers. Brands must ensure that their text messages align with both regulations and user expectations.
That’s why a strong SMS privacy policy isn’t just a smart move – it’s vital for maintaining compliance and building customer trust. Whether you’re sending offers, updates, or transactional messages, this guide explains the importance of a transparent SMS privacy policy and includes templates that you can use as a basis to create a policy that matches your unique requirements.
What is an SMS privacy policy?
An SMS privacy policy is a critical document for any business leveraging messaging services to connect with their audience, whether for text message marketing, alerts, or transactional notifications. Unlike a standard privacy policy, this policy focuses on the unique aspects of SMS service operations by explaining to users how their data will be handled when they receive texts via a short code or long number.
In industries such as the cellular telecommunications industry, following responsible data and privacy practices is especially crucial. This helps ensure compliance with evolving regulations and covers crucial points such as how to opt out of receiving further messages and what kind of contact information is collected. Text message privacy laws specifically address how personal information is managed and the obligations of businesses that use SMS messaging as a communication tool.
Why your business needs an SMS privacy policy
Having an SMS privacy policy is essential for legal, ethical, and business reasons:
Legal compliance
Regulations in the United States, and globally, require clear consent and opt out instructions. For example, the TCPA (also known as the Telephone Consumer Protection Act) mentions using “replying STOP” as a standard opt-out mechanism. Failing to provide clear guidance means you risk hefty penalties and damage to your brand. Following all relevant text message privacy laws and staying current with laws and regulations is necessary to keep your business safe.
Customer trust
Modern consumers, especially those in the cellular telecommunications industry, are acutely aware of privacy issues. Transparent SMS privacy policy examples let subscribers know how their information is used and how they can opt out of receiving future SMS campaigns anytime. This demonstrates your respect for their privacy and builds long-lasting trust.
Operational protection
A robust policy protects your business from complaints and lawsuits by documenting how you ensure compliance with local laws and regulations and industry best practices for SMS opt-in and consent gathering.
Key components of an effective SMS privacy policy
Every business sending B2C SMS messages should address the following in their policy:
1. Consent and subscription details
- Explain how users subscribe to your SMS campaigns (e.g., via web forms, at point-of-sale, or by texting a short code).
- Clearly state what “opting in” means.
2. Description of data collected
- List all contact information (phone number, names, demographic data) and how it’s used in your text message marketing.
3. Purpose of communication
- Describe the type of messages that users can expect to receive (e.g., promotional updates, alerts, or transactional texts).
4. Opt-out methods and instructions
- Provide simple, actionable opt out instructions (like “reply STOP to unsubscribe”).
- Explain how SMS opt works and outline alternative ways to opt out of receiving texts (website form, customer support, etc.).
- Make sure your opt-out process adheres to text message privacy laws and all current laws and regulations for SMS messaging.
5. Data security and sharing
- Detail how user info is secured and if/when it’s shared – details that are particularly relevant in the cellular telecommunications industry.
6. Policy update notices
- Notify users of any changes to your SMS privacy policy and how you’ll communicate these updates.
7. Contact details
- List a phone number, email, or website where subscribers can reach out for more details.
SMS compliance: Privacy policy examples
For a retail business:
BIPShop SMS privacy policy summary
Data collected: Name, phone number, purchase history
Usage: To send promotional offers, restock alerts, and loyalty program updates
Sharing: No third-party sharing for marketing; data may be shared with SMS service providers for delivery.
Opt-out: Reply “STOP” to unsubscribe anytime
Security: Data stored securely and only accessible to authorized staff
Example clause
“BIPShop collects your phone number and purchase preferences to send you exclusive deals and product updates. We do not sell or share your information with third parties for marketing purposes. You may opt out at any time by replying ‘STOP’.”
For a healthcare provider:
BIPCare SMS privacy policy summary
Data collected: Phone number, name (if provided), appointment details
Usage: Appointment reminders, office updates, and health alerts
Sharing: No sharing of SMS consent or phone numbers with third parties
Opt-out: Reply “STOP” or contact support
Compliance: Adheres to GDPR and CCPA regulations
Example clause
“BIPCare uses your phone number to send appointment reminders and important updates. We do not share your SMS consent or personal data with third parties. You can opt out anytime by replying ‘STOP’.”
For a financial services company:
BIPFinancial SMS privacy policy summary
Data collected: Phone number, message history
Usage: Financial updates, account notifications, and service alerts
Sharing: No sharing with third parties except as required by law
Opt-out: Reply “STOP”; essential account notifications may still be sent
Security: Data processed per privacy laws and stored securely
Example clause
“By opting in, you agree to receive SMS updates from BIPFinancial. Your phone number will only be used for account-related communications and will not be shared for marketing purposes. To unsubscribe, reply ‘STOP’.”
FAQs
Absolutely. Every text message marketing campaign must include clear instructions – often “reply STOP” – for users to easily opt out of receiving further messages. This is required by text message privacy laws and many national laws and regulations.
The cellular telecommunications industry is regulated by the FCC under the TCPA, also known as the Telephone Consumer Protection Act, which sets rules on consent and opt out procedures for all sms campaigns and commercial messages. Several other laws and regulations may apply based on your location and business model.
You must include simple opt out instructions (like “Text STOP to unsubscribe”). Explain all opt-out options and how quickly requests will be honored, in line with current text message privacy laws.
A short code is a 5-6 digit number used by businesses for high-volume sms campaigns. It’s often referenced in opt out instructions (e.g., “Text STOP to 12345”), and its use is guided by specific laws and regulations for SMS messaging.
Include up-to-date contact information (email, phone, or web form) in your policy so users can easily reach you for any privacy or compliance queries.
Want SMS compliance peace of mind?
Contact Infobip today to get started with our comprehensive SMS solutions.
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