What loyalty programs need to know about the latest TCPA ruling (Effective April 11, 2025)
The FCC has announced new rules impacting how businesses can use SMS to communicate with users, especially in the context of marketing, loyalty, and reward programs. While Olive does not directly manage SMS communications for our clients, it’s important for programs that use SMS to understand the implications and take action where needed.
Read the full legal breakdown via The National Law Review
In this article
What’s Changing?
Starting April 11, 2025, the FCC’s updated interpretation of the Telephone Consumer Protection Act (TCPA) introduces stricter requirements for user consent and opt-out mechanisms related to SMS messages.
These rules apply to both promotional and informational texts—meaning even reminder messages or transactional program updates could be impacted.
What Should Olive Clients Do?
Here’s what we recommend to stay compliant while maintaining a strong member experience:
1. Make Opt-In Crystal Clear
Ensure your onboarding flow or in-app settings give users a clear choice to receive program messages via SMS. This includes:
- A toggle for enabling/disabling SMS communications.
- A short explanation of what kinds of messages they can expect (e.g. “We’ll notify you about rewards you’ve earned or personalized offers available”).
This improves transparency and isolates consent specifically to your loyalty or engagement program.
2. Clarify Your Opt-Out Language
If a user chooses to opt out of SMS messages, your response messaging should clarify exactly what they’ll stop receiving, and how they can manage settings if they change their mind.
For Olive-powered programs:
“By choosing to stop SMS messages, you will no longer receive updates about your [Program Name] rewards or activity. If you want to continue receiving messages from other services, please update your notification preferences in settings.”
For other client-owned services:
“You’ve opted out of SMS messages related to your rewards and roundups. To continue receiving updates, head to your app settings and turn notifications back on.”
3. Reinforce Messaging In-App
If a user opts out of SMS, consider using in-app messaging or your activity feed to communicate key program moments:
- Earned rewards
- Time-sensitive offers
- Engagement nudges
This helps maintain visibility without relying solely on text messages.
Final Thoughts
This isn’t a major overhaul for most programs—but it does require a review of your current consent and opt-out flows, especially if SMS is a key communication channel. The good news? If your team already follows best practices for email consent, many of the same principles will translate over to SMS.
Have questions or want to review your current setup with us? Reach out to your Olive team—we’re here to help.