Protect Your Dealership from Million-Dollar Lawsuits
In late 2020, a group of Oklahoma car dealerships thought they were simply staying connected with their customers through text messaging. Four years later, they faced an $850,000 class action settlement for sending marketing texts to approximately 118,000 phone numbers without proper consent. Their story isn’t unique, it’s becoming the norm in an increasingly litigious landscape where TCPA class action filings exploded by 112% year-over-year in the first quarter of 2025.
The stakes have never been higher for automotive dealerships. With penalties of up to $1,500 per text or call in violation, and the cost of an average TCPA settlement over $6 million, a single compliance misstep can devastate your dealership’s bottom line and reputation. The automotive industry faces particular scrutiny, with nearly 80% of all TCPA cases filed today being class actions—making TCPA litigation one of the most significant legal threats to American businesses right now.
Video marketing has emerged as a game-changer for automotive sales and service departments, enabling personalized customer connections that drive conversions and build loyalty. However, as dealerships increasingly integrate video into their communication strategies—from follow-up texts containing video links to automated video delivery systems—they’re entering a compliance minefield where traditional TCPA rules intersect with modern marketing technology.
This comprehensive guide provides automotive dealerships with everything needed to implement TCPA-compliant video marketing strategies in 2025. You’ll discover the latest regulatory changes, understand real-world compliance failures that cost dealerships millions, and learn how to build bulletproof processes that protect your business while maximizing your marketing effectiveness. Whether you’re a dealer principal, general manager, or marketing director, this guide will help you navigate the complex world of TCPA compliance with confidence.
Critical 2025 TCPA Updates Every Dealership Must Know
The regulatory landscape shifted dramatically in 2025, with new requirements that demand immediate attention from every automotive dealership. The FCC’s latest update to the TCPA took effect on April 11, 2025, marking a major shift in how businesses must handle revocation of consent. While the widely anticipated one-to-one consent rule was ultimately vacated by the Eleventh Circuit Court of Appeals, the changes that did take effect carry significant implications for how dealerships manage customer communications.
The New Opt-Out Revolution: 10 Days or Face the Consequences
The most critical change for 2025 is the dramatically shortened opt-out processing timeline. Starting April 11, 2025, businesses must honor consumer opt-out requests within 10 business days under the updated Telephone Consumer Protection Act regulations. Previously, businesses had up to 30 days to process opt-outs. This compressed timeline demands immediate operational changes and automated systems capable of rapid response.
The new rule also expands what constitutes a valid opt-out request. Under the new rules, consent revocation isn’t limited to keyword replies. It can come through almost any channel. If a customer says “stop contacting me” during a phone call, sends an email requesting removal, or submits a form on your website, you must process that request within 10 business days across all communication channels.
Universal Opt-Out Requirements
Perhaps most challenging for dealerships is the universal nature of new opt-out rules. If a consumer opts out via one method (text, email, or call), it must apply across all communication channels for that business. This means that when a customer opts out of service reminders via text, they’re also opting out of marketing emails, promotional calls, and any other automated communications from your dealership.
The FCC has also clarified that consumers can revoke consent using any reasonable method and not just standard keywords like “STOP”. Your staff must be trained to recognize opt-out requests in various forms, from verbal statements during phone calls to written requests submitted through multiple channels.
The Lead Generator Loophole: Still Open, But Risky
While the one-to-one consent rule was vacated, dealerships should understand the current state of consent requirements. Initially, the FCC aimed to close this loophole in January 2025 by introducing a “one-to-one consent” rule, meaning each consumer would need to individually consent to receiving autodialed calls or texts from each specific seller separately. However, the Eleventh Circuit Court recently vacated these rules, finding the FCC exceeded its authority.
This means the “lead generator loophole” remains available, allowing dealerships some flexibility in obtaining consumer consent through comparison shopping websites and third-party lead sources. However, relying on this loophole isn’t a long-term strategy. Best practices still suggest obtaining clear, direct consent whenever possible.
Video Marketing Specific Implications
For dealerships using video marketing tools, these updates create new compliance challenges. When you send a text message containing a video link or use automated systems to deliver personalized video content, you must ensure proper consent exists and maintain the ability to process opt-outs within the new 10-day timeline across all channels.
Consider a common scenario: Your service department sends a video inspection update via text message. If the customer responds asking to stop receiving texts, you must also ensure they’re removed from email campaigns, phone call lists, and any other automated communication systems—all within 10 business days.
Million-Dollar Mistakes: Recent Automotive TCPA Settlements
Understanding the real-world consequences of TCPA violations provides crucial context for why compliance must be a top priority. The automotive industry has faced numerous high-profile settlements that illustrate how quickly minor oversights can become major financial disasters.
The Lithia Motors Case: $2.5 Million for 57,800 Text Messages
In 2011, Lithia Motors of Medford Oregon sent a short text message to 57,800 consumers. A week later, they sent a second message to 48,000 of those people. What followed was a class action lawsuit that forced Lithia to settle for $2.5 million. This case demonstrates how rapidly TCPA violations can scale when using automated systems without proper consent verification.
The Lithia case is particularly instructive because it involved just two text messages sent over the span of a week. At an average settlement cost of approximately $43 per recipient, this case illustrates how even seemingly minor communication campaigns can result in devastating financial consequences when proper consent protocols aren’t followed.
Oklahoma Dealerships: $850,000 for Routine Marketing
Numerous Oklahoma car dealerships have agreed to resolve a TCPA class action lawsuit by agreeing to a $850,000 settlement fund. The settlement benefits individuals who received telemarketing text messages from one of several car dealerships between March 12, 2016 and April 13, 2020.
The case began when plaintiff Jennifer King received text messages from Classic Chevrolet encouraging her to “trade up to a new vehicle today to pay the same payment or less.” According to King, the calls she and other consumers received were in violation of the Telephone Consumer Protection Act. The car dealership TCPA class action lawsuit claimed that numerous car dealerships violated these regulations by sending unsolicited text messages to King and other consumers.
This settlement is particularly significant because it involved routine marketing messages that many dealerships send daily. The approximately $7.20 per recipient cost demonstrates that even “small” violations add up quickly when multiplied across large contact databases.
Moss Brothers Auto Group: $2.5 Million for Prerecorded Messages
In late June 2022, the U.S. District Court for the Central District of California gave final approval for a $2.5 million class-action settlement in Johnson v. Moss Brothers Auto Group to resolve claims brought against a motor vehicle dealer under the Telephone Consumer Protection Act.
The case centered on prerecorded telemarketing messages sent to prior customers. Plaintiff Jamal Johnson, a prior customer of Moss Brothers Auto Group, alleged that he received prerecorded telemarketing messages from the dealer without his prior express written consent. Johnson alleged that he received a prerecorded message, noting a high demand for his vehicle and asking whether Johnson would be interested in selling it back to the dealership.
This settlement is crucial for dealerships using video marketing because it demonstrates that even communications with existing customers require proper consent when using automated delivery systems.
Industry-Wide Settlement Trends
Lithia Motors is not the only dealership that has paid for violating TCPA. In 2016, Interstate National Dealer Services agreed to a $4.2 million class action settlement after sending out robocalls to customers with unsolicited offers. Then in 2017, another dealership faced legal action for texting customers about a vehicle recall.
The recall case is particularly noteworthy because it expanded TCPA liability beyond obvious marketing messages. The lawsuit was unique because it applied TCPA rules to service-related communications, demonstrating that the line between informational and promotional content is often blurrier than dealerships assume.
These cases collectively demonstrate that TCPA violations can occur across all types of automotive communications—from obvious marketing messages to service updates and recall notifications. The common thread is the failure to obtain proper consent and maintain compliant communication processes.
How TCPA Regulations Apply to Automotive Video Marketing
Video marketing represents a powerful tool for automotive dealerships, enabling personalized customer connections that drive sales and service retention. However, the intersection of video marketing and TCPA compliance creates unique challenges that require careful navigation to avoid costly violations.
Understanding the Marketing vs. Informational Distinction
The foundational principle of TCPA compliance lies in understanding when your video communications constitute marketing versus informational content. An informational call or text is meant only to aid in the transfer of information between a dealership and a consumer but not to promote or sell a product or service. If the ultimate goal of the telephone call or text is to make a sale or promote a product, then the call must be deemed solicitous in nature and not informational.
This distinction becomes complex with video content because videos often contain mixed messaging. Consider a service department video showing a vehicle inspection. If the video simply documents necessary repairs, it may qualify as informational. However, if the video includes language about upgrade opportunities or promotes additional services, it crosses into marketing territory requiring express written consent.
Examples of truly informational video communications include:
- Appointment reminder videos when the consumer has scheduled the appointment
- Vehicle inspection documentation showing completed work
- Delivery confirmation videos for service completion
- Safety recall notification videos with no promotional content
Examples of marketing video communications requiring consent include:
- Trade-in valuation videos promoting vehicle upgrades
- Service special videos promoting discounted maintenance
- New inventory showcase videos encouraging test drives
- Customer testimonial videos promoting dealership services
Video Delivery Methods and Consent Requirements
The method by which you deliver video content significantly impacts your consent requirements. Each delivery channel has distinct TCPA implications that must be carefully managed.
Text Message Video Links: When sending text messages containing links to video content, you’re subject to full TCPA text messaging requirements. Any business using SMS for marketing must adhere to stringent TCPA requirements, including obtaining prior express written consent from recipients. This applies whether the video link is the primary content or supplementary to text-based messaging.
Email Video Delivery: While email marketing falls under CAN-SPAM rather than TCPA, automated email systems that include video content may still trigger TCPA requirements if they use automated dialing technology to send notifications about video availability via phone or text.
Automated Phone Video References: When using automated calling systems to notify customers about available video content, you’re clearly within TCPA jurisdiction and require appropriate consent levels based on the video’s marketing or informational nature.
Social Media Video Promotion: While organic social media posts generally fall outside TCPA scope, paid social media campaigns or automated direct messaging containing video content may trigger compliance requirements.
TradePending Video Compliance Integration
TradePending’s Video solution addresses many common TCPA compliance challenges through built-in features designed specifically for automotive dealerships. The platform includes automated consent verification, proper opt-out mechanisms, and compliance reporting that helps dealerships maintain regulatory adherence while maximizing video marketing effectiveness.
The system automatically tracks consent status for each contact, ensuring that video delivery only occurs to properly consented recipients. Service-to-Sales Video Transitions
A particularly complex area involves service department videos that transition into sales opportunities. Many dealerships use video inspections to document needed repairs, but these same videos often identify opportunities for vehicle upgrades or additional services.
The key compliance factor is the original purpose and consumer expectation. If a customer consents to receive service-related video updates, that consent doesn’t automatically extend to promotional video content about new vehicle opportunities or service specials. Dealerships must either obtain separate marketing consent or carefully restrict service videos to purely informational content.
Record Keeping for Video Communications
Video marketing creates unique record-keeping challenges because compliance verification requires documenting not just the consent and delivery, but also the video content itself. Dealerships must maintain records showing:
- Original consent documents with timestamps
- Video content classification (informational vs. marketing)
- Delivery method and recipient confirmation
- Opt-out requests and processing timelines
- Content modifications or updates over time
This comprehensive documentation becomes crucial if compliance is challenged, as video content can be more difficult to reconstruct than simple text communications.
Your Step-by-Step TCPA Compliance Checklist for 2025
Building a comprehensive compliance framework requires systematic attention to consent management, opt-out processing, documentation, and staff training. This checklist provides actionable steps that dealerships can implement immediately to reduce TCPA liability while maintaining effective video marketing campaigns.
Consent Management: The Foundation of Compliance
Implement Double Opt-In Procedures
Consent must be in written form and consist of a double opt-in. In other words, when a customer agrees to share their phone number with you, dealerships need to send a follow-up message that asks them to confirm. For video marketing, this means customers must explicitly agree to receive video content via their preferred communication channel.
Your double opt-in process should include:
- Initial consent request with clear disclosure language
- Confirmation message requiring active response (Y, YES, or similar)
- Welcome message confirming enrollment and providing opt-out instructions
- Documented timestamp and IP address for electronic consent records
Develop Clear Consent Language
Express Written Consent must be a clear and conspicuous disclosure that explains a consumer will receive future calls that deliver pre-recorded or autodialed telemarketing messages by, or on behalf of, a specific seller and that the consumer is not required to provide consent as a condition to purchase any good or service.
Sample compliant consent language for video marketing: “I consent to receive marketing text messages and emails containing video content from [Dealership Name] using automated technology. I understand that consent is not required to purchase any good or service, and I can opt out at any time by replying STOP or contacting [phone number/email]. Message and data rates may apply.”
Establish Contextual Consent Categories
Customer consent is not universal. Dealerships need what’s called “contextual consent,” which means customers agree to specific types of communication, like marketing or service-related messages only. Create separate consent categories for:
- Service appointment and inspection videos
- Marketing and promotional video content
- Trade-in valuation and sales opportunity videos
- General dealership news and updates with video content
Document Everything
Maintain comprehensive consent records including:
- Original consent forms with electronic signatures
- IP addresses and timestamps for online submissions
- Confirmation message delivery receipts
- Customer response confirmations
- Any subsequent consent modifications or updates
Enhanced Opt-Out Processing: Meeting the 10-Day Standard
Implement Multi-Channel Opt-Out Recognition
Under the new rules, consent revocation isn’t limited to keyword replies. It can come through almost any channel. If a consumer says “stop contacting me” during a phone call, sends an email requesting removal, or submits a form on your website, you must process that request within 10 business days.
Establish procedures for recognizing opt-out requests through:
- Standard text reply keywords (STOP, UNSUBSCRIBE, QUIT)
- Verbal requests during phone conversations
- Email requests to any dealership address
- Website contact form submissions
- Social media direct messages or comments
- In-person requests during service appointments
Create Universal Opt-Out Processing
If a consumer opts out via one method (text, email, or call), it must apply across all communication channels for that business. When processing any opt-out request:
- Immediately flag the customer record across all systems
- Remove from all marketing lists within 10 business days
- Update CRM, email marketing, and text messaging platforms
- Ensure service department respects marketing opt-out status
- Document the opt-out date, method, and processing completion
Automated Compliance Systems
Given the shortened timeline, manual processing becomes nearly impossible at scale. Implement automated systems that:
- Instantly flag opt-out requests when received
- Automatically update all customer communication preferences
- Generate compliance reports showing processing timelines
- Alert managers to any delays approaching the 10-day limit
Staff Training and Internal Controls
Legal Liability Education
Every team member who communicates with customers must understand the financial risks of TCPA violations. Each unsolicited call or message could potentially lead to a violation. The stakes are high, with fines ranging from $500 to $1,500 per incident. Regular training should cover:
- Real-world settlement examples and costs
- Personal liability implications for employees
- Company policies and consequences for violations
- Escalation procedures for unclear situations
Script Development and Adherence
Develop standardized scripts for all customer communications that include proper disclosures and opt-out options. Scripts should cover:
- Initial contact and consent requests
- Video content delivery notifications
- Service appointment confirmations with video elements
- Follow-up communications referencing video content
Regular Compliance Audits
Conduct monthly internal audits reviewing:
- Consent documentation completeness
- Opt-out processing timelines and completeness
- Staff adherence to approved scripts and procedures
- Technology system functionality and integration
- Customer complaint patterns and resolution
Implementing TCPA-Compliant Video Marketing Technology
Technology serves as both the enabler and the safeguard for compliant video marketing. The right systems automate compliance processes, reduce human error, and provide the documentation necessary to defend against potential challenges.
CRM Integration for Automated Compliance
Using an automotive CRM with built-in, TCPA-compliant text messaging. CRM systems automate the process so you and your salespeople can focus on the customers. When you add a phone number to your CRM, the customer automatically receives an opt-in message. Each message after that includes opt-out instructions, and the CRM keeps your Do Not Call list up to date.
Modern CRM systems designed for automotive dealerships should include:
- Automatic consent verification before any communication
- Real-time opt-out processing across all communication channels
- Comprehensive audit trails for all customer interactions
- Integration with video marketing platforms and delivery systems
- Automated compliance reporting and risk monitoring
TradePending Video Compliance Features
TradePending’s Video solution addresses TCPA compliance challenges through automotive-specific features:
Consent Verification Integration: The platform automatically verifies consent status before allowing video delivery, preventing inadvertent violations while maintaining marketing effectiveness.
Multi-Channel Opt-Out Processing: When customers opt out through any channel, the system immediately updates all communication preferences within TradePending’s products, ensuring compliance with universal opt-out requirements.
Compliance Documentation: Every video interaction is logged with timestamps, consent status, and delivery confirmations, providing the documentation necessary to defend against potential challenges.
Content Classification: The system helps dealerships properly categorize video content as marketing or informational, ensuring appropriate consent levels are maintained for different communication types.
Lead Source Verification and Documentation
Third-party lead sources represent a significant compliance risk area. The ‘lead generator loophole’ may still be open, but that doesn’t absolve you of responsibility. Regularly audit your lead providers to verify they’re obtaining proper consent. Request documentation of their consent practices and review it thoroughly.
Implement systematic lead source verification:
- Require consent documentation from all lead providers
- Conduct quarterly audits of lead quality and consent validity
- Maintain separate consent categories for third-party leads
- Implement additional verification steps for high-risk lead sources
Automated Consent Tracking Systems
Manual consent tracking becomes impossible at dealership scale. Automated systems should provide:
- Real-time consent status for every customer record
- Historical consent modification tracking
- Automated compliance alerts for expired or questionable consent
- Integration with all customer communication platforms
- Detailed reporting for internal and external audits
Modern consent management systems can integrate with existing dealership technology stacks, providing comprehensive compliance oversight without disrupting established workflows.
Building a Compliance Culture: Training Your Team
Technology alone cannot ensure TCPA compliance—your team must understand and consistently apply compliance principles across all customer interactions. Building a compliance-focused culture requires ongoing education, clear procedures, and accountability measures.
Legal Liability Education
Your sales and marketing teams should constantly find ways to bring repeat customers back to your dealership. Keeping regular contact with past customers is one of the most cost-effective strategies. Regular training sessions for your sales and marketing teams on TCPA guidelines are essential. A well-informed team is less likely to inadvertently breach regulations, thereby protecting your dealership from potential legal challenges.
Training programs should address:
- Individual employee liability for TCPA violations
- Company policies and disciplinary measures for non-compliance
- Recognition of high-risk communication scenarios
- Proper escalation procedures for uncertain situations
- Regular updates on regulatory changes and industry settlements
Script Development and Implementation
Standardized scripts reduce compliance risk while maintaining communication effectiveness. Develop scripts for:
Initial Customer Contact: “Hello, this is [Name] from [Dealership]. I’m calling regarding your recent inquiry. Before we continue, I want to confirm that you’re comfortable receiving follow-up communications from us via phone, text, and email, including video content about your vehicle interest. Is that acceptable to you?”
Video Content Delivery: “Hi [Name], this is [Name] from [Dealership]. I have a personalized video showing [specific content]. I’m sending this via text message to the number you provided. You can opt out of future messages by replying STOP at any time.”
Service Video Communications: “Your service advisor has completed a video inspection of your vehicle. This video documents the work performed and any additional recommendations. You can view it using the link we’re texting to your phone.”
Role-Playing and Scenario Training
Regular practice sessions help staff navigate complex compliance situations:
Scenario 1: Customer asks to stop receiving text messages during a phone call about service scheduling. Proper Response: “I understand you want to stop receiving text messages. I’m updating your preferences right now to remove you from all text communications. Is it okay if we continue to contact you by phone and email for service appointments?”
Scenario 2: Customer responds to a service video with interest in upgrading their vehicle. Proper Response: “I’m glad you’re interested in exploring upgrade options. Before I share information about our current inventory, I need to confirm that you’re comfortable receiving marketing communications about sales opportunities.”
Documentation and Accountability
Implement systems that track compliance performance:
- Regular compliance testing with scored results
- Documentation of training completion and comprehension
- Performance metrics that include compliance measures
- Clear consequences for repeated violations
- Recognition programs for exemplary compliance performance
Staying Compliant: Monitoring and Maintenance
TCPA compliance requires ongoing vigilance as regulations evolve and communication practices change. Effective monitoring systems help dealerships identify potential issues before they become costly violations.
Regular Policy Updates
Since becoming law in 1991, TCPA has evolved several times. The most recent example is the “services-related messaging” lawsuit we mentioned earlier in the article. With each new case, TCPA’s interpretation changes. It’s important to stay up to date with the latest reading of the law to avoid unknown pitfalls.
Establish quarterly policy review processes:
- Monitor FCC rulings and interpretation changes
- Review recent TCPA litigation outcomes and implications
- Update internal policies and training materials accordingly
- Communicate changes to all relevant staff members
- Document policy modifications and implementation timelines
Technology System Audits
Regular system audits ensure compliance tools continue functioning properly:
- Monthly consent tracking system reviews
- Quarterly integration testing between platforms
- Annual comprehensive system audits by compliance specialists
- Real-time monitoring of opt-out processing timelines
- Backup system testing and recovery procedures
Legal Consultation Requirements
The TCPA is a critical legal framework that demands careful attention from car dealerships. Maintaining compliance not only avoids costly lawsuits but also builds trust and goodwill with your customers. However, this guide is not a substitute for professional legal advice. Consult a specialized attorney to ensure full compliance and to navigate the complexities of the TCPA and related FCC regulations effectively.
Regular legal consultation should include:
- Annual compliance policy reviews with TCPA specialists
- Immediate consultation following regulatory changes
- Legal review of new marketing campaigns or communication strategies
- Incident response planning and legal representation protocols
- Contract reviews for third-party vendors and lead sources
Industry Update Tracking
The explosion in TCPA class action filings in 2025 sends an unmistakable signal that the compliance risks have never been higher in lead gen. The aforementioned 112% year-over-year increase in class actions, a plaintiff’s bar more aggressive than ever, and widespread confusion over revocation standards have created a perfect storm.
Stay informed through:
- Industry association compliance newsletters
- Legal publication subscriptions focusing on TCPA developments
- Automotive compliance webinars and training programs
- Peer dealership compliance discussion groups
- Technology vendor compliance updates and training resources
Conclusion and Action Steps
TCPA compliance in 2025 represents both a significant challenge and a competitive opportunity for automotive dealerships. While the regulatory landscape has become more complex with enhanced opt-out requirements and increased enforcement activity, dealerships that implement comprehensive compliance programs can safely leverage video marketing’s proven effectiveness while competitors struggle with costly violations.
The evidence is clear: TCPA lawsuits continue rising, settlements regularly exceed millions of dollars, and the automotive industry remains a prime target for enforcement actions. However, dealerships that take proactive steps to implement proper consent management, opt-out processing, staff training, and technology integration can confidently use video marketing to drive sales and service revenue while avoiding legal complications.
Immediate Action Items
Within 48 Hours:
- Audit current video marketing practices for TCPA compliance gaps
- Review and update opt-out processing procedures to meet 10-day requirements
- Implement universal opt-out policies across all communication channels
- Schedule comprehensive staff training on new TCPA requirements
Within 30 Days:
- Implement or upgrade CRM integration for automated compliance management
- Establish consent verification procedures for all video marketing campaigns
- Create standardized scripts and procedures for customer communications
- Begin monthly compliance monitoring and reporting processes
Within 90 Days:
- Complete comprehensive staff training on TCPA compliance requirements
- Implement technology solutions for automated consent tracking and opt-out processing
- Establish quarterly compliance audits and policy review procedures
- Develop incident response procedures for potential TCPA challenges
The Competitive Advantage of Compliance
While many dealerships view TCPA compliance as a burden, forward-thinking organizations recognize it as a competitive differentiator. Compliant dealerships can confidently implement sophisticated video marketing strategies that build customer relationships and drive revenue, while competitors without proper compliance programs face constant legal risk that limits their marketing effectiveness.
TradePending Video provides automotive-specific compliance features that enable dealerships to maximize video marketing ROI while maintaining regulatory adherence. The platform’s built-in consent verification, automated opt-out processing, and comprehensive documentation capabilities address the unique challenges automotive dealerships face in today’s compliance environment.
Professional Legal Consultation
This guide provides comprehensive practical guidance for TCPA compliance, but every dealership’s situation contains unique factors requiring professional legal analysis. Consult with attorneys specializing in TCPA compliance to ensure your specific practices, technology systems, and communication strategies meet all regulatory requirements.
The investment in compliance infrastructure and legal consultation represents insurance against potentially devastating financial consequences. When measured against the millions of dollars in settlements paid by non-compliant dealerships, comprehensive compliance programs deliver exceptional ROI while enabling sophisticated marketing strategies that drive business growth.
TCPA compliance in 2025 isn’t just about avoiding lawsuits, it’s about building customer trust through transparent, respectful communication practices that enhance your dealership’s reputation and competitive position. Dealerships that embrace compliance as a core operational principle will find themselves better positioned to leverage video marketing’s transformative potential while competitors struggle with the consequences of inadequate compliance programs.