Halloween Edition: The Scariest TCPA Fines That Shut Businesses Down

TCPA fines are scary. The Telephone Consumer Protection Act (TCPA) is a law that aims to protect consumers from unwanted calls. It achieves this by placing certain restrictions on businesses that use telephone outreach for marketing purposes. To hold businesses accountable, failure to comply with TCPA regulations results in hefty fines.

Every Halloween, we trade ghost stories and urban legends meant to make our skin crawl. But in the world of business, few tales are more chilling than those involving the TCPA, a law that has left even major corporations trembling. For companies that rely on calls or texts to reach customers, the threat of TCPA fines isn’t folklore. It’s a real-life horror story that can end in bankruptcy, brand damage, or worse.

This Halloween season, don’t let TCPA fines catch you unaware. Drift through the haunted halls of TCPA history where you’ll see examples of multimillion-dollar penalties, class-action curses, and compliance missteps that have claimed more than a few corporate victims.

TCPA Nightmares That Put Companies Six Feet Under

The TCPA was designed to protect consumers from unwanted calls and texts. But it’s also created a minefield of compliance risks for businesses. What makes the law so frightening is that each unauthorized call or text can trigger fines ranging from $500 to $1,500 per violation. Multiply that by thousands (or millions) of messages, and you have a monster-sized problem.

Here are some of the most common TCPA nightmares:

The Creepy Robo-Caller  

The TCPA protects consumers from unwanted robocalls and robotexts especially as they are used for marketing. TCPA rules make it illegal to use an automated system to make robocalls or send robotexts to cell phones without prior consent. Compliance guidelines restrict using prerecorded voices for telemarketing on residential landlines without consent. Therefore, using automated dialing systems or prerecorded messages without explicit consent can result in TCPA fines per call or text.

The Dare Not Call List

The National Do Not Call (DNC) Registry is an online database where consumers can list their numbers that they explicitly do not want to be marketed to. To maintain DNC compliance, telemarketers are required to scrub their calling lists against the DNC list to avoid calling consumers who have registered their numbers. Companies must also maintain internal DNC lists and honor any individual opt-out requests made to them directly. Calling or texting numbers on the National Do Not Call Registry can also result in TCPA fines per call or text..

Decayed Data

Database records that are not regularly reviewed and updated can change over time without businesses realizing it. Relying on outdated or incomplete consent records that no longer meet legal standards can lead to costly compliance errors.

Vendor Voodoo

TCPA rules now require businesses to obtain one-to-one consent from a consumer for telemarketing calls and texts. So, consent cannot be bundled and sold to multiple third-party sellers. Consent must be obtained separately for each seller and be clearly and conspicuously disclosed. This ensures that  consumers know exactly who is seeking permission to use their data. 

Businesses can also be held vicariously liable for the actions of third-party vendors they use. Therefore, partnering with lead generators or third-party marketers who fail to follow TCPA rules leaves you vulnerable to liability and TCPA fines.

Reassigned Reaper

Sometimes, numbers of consumers that have given consent change owners. Unless the new owner has given consent, the number is no longer safe to contact. Not scrubbing reassigned numbers can result in calls to new owners who never opted in which would be a TCPA violation.

In each of these scenarios, even well-intentioned businesses can find themselves buried under legal fees, class-action suits, and devastating TCPA fines.

Horror Stories from the TCPA Graveyard

Don’t believe TCPA fines can bury you? The following cases aren’t myths—these are real companies that faced grave consequences.

ViSalus, Inc.’s $925 Million Robocall Verdict

ViSalus, Inc., a multi-level nutritional supplement marketing company, found itself facing nearly a billion dollars in damages for sending 1.8 million automated calls promoting its products. The jury ruled each call a separate violation, a judgment that became one of the largest TCPA awards in history.

Dish Network’s $280 Million Fine That Made History

Dish Network was hit with a massive penalty after its telemarketing vendors made millions of calls to people on the Do Not Call list. The court ruled that Dish was responsible for its vendors’ violations, a chilling reminder that you can’t outsource compliance.

Caribbean Cruise Line’s “Free Cruise” That Cost $76 Million in TCPA Fines

Caribbean Cruise Line learned the hard way that “free” doesn’t mean risk-free. Its robocall campaign, a massive telemarketing scheme, promised free cruises to survey respondents and led to a $76 million class-action settlement.

Each of these cases started the same way: with a simple marketing campaign. And each ended in TCPA fines so steep that they could bury even the most profitable enterprise.

How to Break the Curse: Your TCPA Safety Spellbook

Avoiding a compliance catastrophe doesn’t require witchcraft. You just need vigilance, documentation, and the right tools. Here’s your spellbook for protection:

1. Cast the Consent Charm

Always obtain express written consent before calling or texting consumers for marketing purposes. Keep those records secure and up to date with a batch append tool.

2. Sweep Your Contact Lists

Regularly scrub your call and text lists against the National DNC Registry and reassigned number databases.

3. Guard Against Third-Party Hexes

If you work with outside marketers or lead vendors, make sure they’re TCPA-compliant. Request proof of consent and audit their processes.

4. Track and Time Your Calls

Respect “quiet hours.” The TCPA restricts calls to between 8 a.m. and 9 p.m. local time. Violating this window could open your business to complaints and fines.

5. Keep Records Like a Grimoire

Maintain detailed logs of opt-ins, opt-outs, and call records. These serve as your best defense if a complaint ever arises.

6. Use Technology as Your Talisman

Invest in TCPA compliance software, lead verification tools, or call management systems that automate scrubbing and consent tracking. Automation can be your holy water against costly mistakes.

Trick or TCPA: How One Wrong Call Can Haunt Your Business Forever

In the spirit of the season, remember this: the real monsters aren’t under the bed—they’re in your call logs. The line between legitimate marketing and a compliance nightmare is thin, and the FTC and FCC are watching closely.

One careless mass SMS campaign or misdialed robocall could awaken a class-action lawsuit that drains your business faster than a vampire at a blood drive. Don’t treat TCPA compliance as a seasonal scare, but as a year-round commitment.

When it comes to TCPA fines, there’s no silver bullet. However, you can call on Searchbug to help. Phone verification APIs and data scrubbing tools allow you to maintain quality leads lists. Prevention, preparation, and the occasional compliance spell can keep TCPA fines from creeping up on you.

Happy Halloween from Searchbug—may your dialers stay curse-free!