{"id":10929,"date":"2025-06-20T07:00:00","date_gmt":"2025-06-20T12:00:00","guid":{"rendered":"https:\/\/activeprospect.com\/blog\/\/"},"modified":"2025-09-01T11:48:40","modified_gmt":"2025-09-01T16:48:40","slug":"tcpa-settlement","status":"publish","type":"post","link":"https:\/\/activeprospect.com\/blog\/tcpa-settlement\/","title":{"rendered":"The real cost of a TCPA settlement for businesses"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"448\" src=\"https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/TCPA_settlement_blog-1024x448.png\" alt=\"\" class=\"wp-image-10930\" srcset=\"https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/TCPA_settlement_blog-1024x448.png 1024w, https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/TCPA_settlement_blog-300x131.png 300w, https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/TCPA_settlement_blog-768x336.png 768w, https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/TCPA_settlement_blog-1536x672.png 1536w, https:\/\/activeprospect.com\/wp-content\/uploads\/2025\/06\/TCPA_settlement_blog-2048x896.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The <a href=\"https:\/\/activeprospect.com\/glossary\/tcpa\/\">Telephone Consumer Protection Act<\/a> (TCPA) was designed to protect consumers from intrusive marketing calls, texts, and faxes, but for businesses, it\u2019s a legal minefield. Violations can cost millions, tank your reputation, and invite waves of litigation.<\/p>\n\n\n\n<p>This guide breaks down the <strong>real costs of TCPA settlements<\/strong>, from the average check amount to the ripple effects on your brand. If you\u2019re in marketing, legal, or leadership and not 100% confident in your compliance, now\u2019s the time to pay attention before a misstep turns into a multi-million-dollar mistake.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a TCPA settlement?<\/h2>\n\n\n\n<p>A <strong>TCPA settlement<\/strong> refers to the resolution of a lawsuit, either individually or through a class action, where a company accused of violating the <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-rules\/\">TCPA<\/a> agrees to pay monetary damages to consumers rather than continue litigation. These violations can include, but are not limited to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Making autodialed calls or sending texts without prior express written consent<\/li>\n\n\n\n<li>Contacting numbers on the <a href=\"https:\/\/activeprospect.com\/blog\/do-not-call-rules\/\">National Do-Not-Call (DNC<\/a>) list or the <a href=\"https:\/\/activeprospect.com\/leadconduit\/integrations\/reassigned-numbers-database\/query\/\">Reassigned Number Database<\/a> (RND)<\/li>\n\n\n\n<li>Using prerecorded voice messages without permission<\/li>\n<\/ul>\n\n\n\n<p>Settlements usually occur when the company wants to avoid the unpredictable outcomes and high costs of going to court. But these payouts can be enormous, even for seemingly small infractions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Average TCPA settlement amounts<\/h2>\n\n\n\n<p>The <strong>average TCPA settlement<\/strong> isn\u2019t a fixed number\u2014it swings widely depending on the size of the campaign, the nature of the <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-violations\/\">violation<\/a>, and whether it\u2019s an individual claim or a class action. Some companies walk away with a five-figure hit. Others face settlements in the tens of millions.<\/p>\n\n\n\n<p>Here\u2019s a breakdown of notable cases and typical ranges:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Individual TCPA settlements<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Typical range:<\/strong> $5,000 to $250,000+<\/li>\n\n\n\n<li><strong>Example:<\/strong> A New Jersey woman won a <a href=\"https:\/\/www.dnc.com\/blog\/what-tcpa-lawsuit-can-cost-you\">$229,500<\/a> verdict against a cable provider for unsolicited calls. Another case awarded her $571,000, which was later settled confidentially.<\/li>\n<\/ul>\n\n\n\n<p>While individual cases might not make headlines, they still sting, especially if multiple plaintiffs follow.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>TCPA class action settlements<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Typical range:<\/strong> $5 million to $60+ million<\/li>\n\n\n\n<li><strong>Examples:<\/strong>\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.realtrends.com\/blog\/2023\/01\/17\/keller-williams-reaches-settlement-in-cold-calling-suit\/\">Keller Williams Realty<\/a> settled for <strong>$40 million<\/strong> over unauthorized autodialed calls.<\/li>\n\n\n\n<li>A satellite TV provider was hit with a <a href=\"https:\/\/www.mintz.com\/insights-center\/viewpoints\/2776\/2019-06-tcpa-class-action-update-dish-network-hook-61-million-third\">$61 million<\/a> verdict for DNC violations by a third-party vendor.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>The scariest part?<\/strong> TCPA class action lawsuits are on the <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-lawsuits-updates\/\">rise<\/a> in 2025 and have doubled since 2024. What makes these class actions even more dangerous is that they\u2019re often filed by professional plaintiffs and serial TCPA litigators who target businesses seen as vulnerable.&nbsp;<\/p>\n\n\n\n<p>The dollar amounts in major TCPA cases and settlements are often staggering, yet the financial penalties rarely translate into meaningful remedies for individuals allegedly harmed by a company\u2019s calls or texts. In reality, these <strong>outreach efforts are often from responsible<\/strong> businesses engaging customers or leads.&nbsp;<\/p>\n\n\n\n<p>Related to privacy \u201charms\u201d, law professors <strong>Danielle Keats Citron and Daniel Solove <\/strong>have provided insightful research and commentary <a href=\"https:\/\/teachprivacy.com\/privacy-harms\/\">stating<\/a>, \u201cCurrently, much privacy litigation suffers from a misalignment of law enforcement goals and remedies. For example, existing methods of litigating privacy cases, such as class actions, often enrich lawyers but fail to achieve meaningful deterrence,\u201d (or &#8220;harms&#8221; remedy).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The real costs of TCPA settlements<\/h2>\n\n\n\n<p>It\u2019s easy to focus on the dollar amount of a TCPA settlement check, but the<strong> true cost runs much deeper.<\/strong> A single violation can trigger a chain reaction of financial, legal, and reputational fallout. Here\u2019s a full breakdown of where the <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-damages\/\">damage<\/a> hits:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Direct financial penalties<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>$500 per violation<\/strong> is the statutory minimum<\/li>\n\n\n\n<li><strong>Up to $1,500 per violation<\/strong> for willful violations (known as \u201ctreble damages\u201d)<\/li>\n\n\n\n<li>Multiply that by thousands of calls, and the numbers explode fast.<\/li>\n<\/ul>\n\n\n\n<p>One errant calling or <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-marketing\/\">SMS campaign<\/a> targeting 10,000 people can mean <strong>$5\u201315 million<\/strong> in exposure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Legal and compliance costs<\/strong><\/h3>\n\n\n\n<p>Even if you fight and win, you&#8217;re still likely paying <strong>six to seven figures<\/strong> in legal fees. Lose, and you\u2019ll also foot the bill for plaintiff attorney fees, court costs, and settlement administration. That\u2019s before even addressing potential government fines or penalties from agencies like the FCC or FTC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Brand reputation damage<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Negative headlines<\/strong> erode consumer trust.<\/li>\n\n\n\n<li><strong>Industry peers and competitors<\/strong> question your credibility.<\/li>\n\n\n\n<li>You become a <strong>target for serial TCPA litigators<\/strong> and professional plaintiffs.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Lost operational resources<\/strong><\/h3>\n\n\n\n<p>TCPA lawsuits are time-consuming. Leadership, legal, marketing, and compliance teams are pulled away from growth and forced to focus on damage control. That\u2019s time not spent on strategy, innovation, or customer engagement, and <strong>you\u2019ll never get it back.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Best practices to avoid a costly TCPA settlement<\/strong><\/h2>\n\n\n\n<p>The easiest way to <strong>survive a TCPA lawsuit <\/strong>is to never face one in the first place. Prevention isn\u2019t just cheaper, it\u2019s smarter, faster, and far less disruptive to your business.<\/p>\n\n\n\n<p>With the TCPA\u2019s strict liability rules and the growing wave of aggressive litigation, businesses can\u2019t afford to cut corners on compliance. Below are <strong>five essential best practices<\/strong> every organization should follow to stay protected and minimize risk.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Obtain clear, documented consent<\/strong><\/h3>\n\n\n\n<p>Your first and strongest line of defense is <strong>prior express written consent (PEWC)<\/strong> and it must be crystal clear.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Use plain, <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-language\/\">unambiguous language<\/a>.<\/li>\n\n\n\n<li>Disclose <strong>who<\/strong> will be contacting the consumer and <strong>why<\/strong>.<\/li>\n\n\n\n<li>Ensure the consumer explicitly agrees to be contacted via phone, text, or prerecorded message.<\/li>\n<\/ul>\n\n\n\n<p>If your <a href=\"https:\/\/activeprospect.com\/blog\/express-written-consent\/\">consent process<\/a> is vague or inconsistent, you&#8217;re opening the door to lawsuits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Keep meticulous records<\/strong><\/h3>\n\n\n\n<p>You can\u2019t prove compliance without proof. Maintain organized, accessible records of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Consent forms with clear \u2018agreement\u2019 action to notice disclosure language<\/li>\n\n\n\n<li>Call and text logs<\/li>\n\n\n\n<li>Opt-out timestamps and confirmations<\/li>\n\n\n\n<li>Lead source details<\/li>\n<\/ul>\n\n\n\n<p>If a claim is filed, your best defense will include detailed documentation.\u00a0In addition to keeping organized records, it\u2019s important to maintain clean and secure systems that protect sensitive data from unnecessary exposure. Keep your systems running smoothly and secure by using trusted tools like <a href=\"https:\/\/cleanmymac.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CleanMyMac<\/a> to regularly clear unwanted files, optimize performance, and protect sensitive\u00a0data\u00a0storage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Scrub all leads against DNC lists<\/strong><\/h3>\n\n\n\n<p>This step is <strong>non-negotiable<\/strong>. Always <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-litigator-scrub\/\">scrub your contact lists<\/a> against:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The National<strong> DNC Registry<\/strong><\/li>\n\n\n\n<li><strong>State-specific <\/strong>DNC lists<\/li>\n\n\n\n<li>Your company\u2019s <strong>internal DNC list<\/strong><\/li>\n\n\n\n<li><strong>RND Reassigned Numbers Database service<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Failing to do this is one of the fastest ways to end up in court and one of the easiest mistakes to avoid.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Train your sales &amp; marketing teams<\/strong><\/h3>\n\n\n\n<p>Compliance can\u2019t be siloed. Make <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-consent\/\">TCPA awareness<\/a> part of your company culture by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Including TCPA guidelines in employee onboarding<\/li>\n\n\n\n<li>Holding regular compliance training<\/li>\n\n\n\n<li>Requiring checklist reviews before launching campaigns<\/li>\n<\/ul>\n\n\n\n<p>Remember, one uninformed employee <strong>can trigger a lawsuit <\/strong>for the entire company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. Implement TrustedForm&nbsp;<\/strong><\/h3>\n\n\n\n<p>Don\u2019t rely on <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-third-party-consent\/\">third-party<\/a> assurances or outdated screenshots. Join thousands of businesses who use ActiveProspect\u2019s<a href=\"https:\/\/activeprospect.com\/trustedform\/\"> TrustedForm<\/a> to <strong>document proof of consent <\/strong>for every lead. With TrustedForm, businesses receive:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mitigate TCPA risk by avoiding outreach to consumers without proper, documented consent on file<\/li>\n\n\n\n<li>Verify that the <a href=\"https:\/\/activeprospect.com\/blog\/trustedform-certificate\/\">consent certificate<\/a> directly corresponds to the lead being purchased to confirm authenticity<\/li>\n\n\n\n<li>Proceed with confidence, knowing the individual has provided consent to be contacted<\/li>\n<\/ul>\n\n\n\n<p>With TrustedForm, you gain independent, real-time proof of consent that can help you when it matters most. <strong>Don\u2019t leave your business exposed.<\/strong> Lock in compliance, build consumer trust, and move forward with confidence.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final thoughts<\/h2>\n\n\n\n<p>The costs of a TCPA settlement go far beyond the headlines and dollar signs. They reach into <strong>every corner of your business<\/strong>\u2014your finances, your brand reputation, your internal operations, and your future growth.<\/p>\n\n\n\n<p>Whether it\u2019s a single violation or a full-blown class action, the risks are real and rising. And thanks to the TCPA\u2019s strict liability structure, intent doesn\u2019t matter; <strong>only compliance does<\/strong>.<\/p>\n\n\n\n<p>But here\u2019s the good news: with the right tools and processes, these risks are avoidable.<\/p>\n\n\n\n<p>Start by securing documented, prior express written consent. Keep airtight records. Scrub your lists. Train your teams. And above all, use technology like <strong>TrustedForm<\/strong> to help document and verify consent for TCPA compliance while providing unmatched visibility into the consumer experience. Because when it comes to TCPA compliance, <strong>it\u2019s not about being lucky, it\u2019s about being prepared.<\/strong><\/p>\n\n\n\n<p>Don\u2019t wait for the lawsuit.<a href=\"https:\/\/activeprospect.com\/trustedform\/\"><strong> Get started with TrustedForm today.<\/strong><\/a><\/p>\n\n\n\n<div class=\"hs-cta-embed hs-cta-simple-placeholder hs-cta-embed-188384143983\"\n  style=\"max-width:100%; max-height:100%; width:700px;height:292.1953125px\" data-hubspot-wrapper-cta-id=\"188384143983\">\n  <a href=\"https:\/\/cta-service-cms2.hubspot.com\/web-interactives\/public\/v1\/track\/redirect?encryptedPayload=AVxigLJgerJLSCZtXghUyI9X1zMGfpqFaOcRcuOC6Jg%2BJe7yrbAsC%2F3OAqcc%2FqFY%2Fcjo5ZtXH1ziwk%2B23Oo6znF2qNfEpvxhqzWz9FWF1H0DWjxEYqFYA0j%2BiXQPNnd6osXRqO2uiI3pWrW%2FZmZMW1O5ch0WRczJu%2BfkiDkDMuDCUmHNiIfq4VJt5dAYKzPuJvF1GBqp%2Fg%3D%3D&#038;webInteractiveContentId=188384143983&#038;portalId=47215574\" target=\"_blank\" rel=\"noopener\" crossorigin=\"anonymous\">\n    <img decoding=\"async\" alt=\"CTA_TFDemo\" loading=\"lazy\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/47215574\/interactive-188384143983.png\" style=\"height: 100%; width: 100%; object-fit: fill\"\n      onerror=\"this.style.display='none'\" \/>\n  <\/a>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>DISCLAIMER: <em>This page and all related links are provided for general informational and educational purposes only and are not legal advice. ActiveProspect does not warrant or guarantee this information will provide you with legal protection or compliance. Please consult with your legal counsel for legal and compliance advice. You are responsible for using any ActiveProspect Services in a legally compliant manner pursuant to ActiveProspect\u2019s Terms of Service. Any quotes contained herein belong to the person(s) quoted and do not necessarily represent the views and\/or opinions of ActiveProspect.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Telephone Consumer Protection Act (TCPA) was designed to protect consumers from intrusive marketing calls, texts, and faxes, but for businesses, it\u2019s a legal minefield. Violations can cost millions, tank your reputation, and invite waves&hellip;<\/p>\n","protected":false},"author":59,"featured_media":10931,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[251],"tags":[31,147,28,202,29],"ap-post-type":[],"ap-post-industry":[],"ap-post-product":[],"ap-post-topic":[],"class_list":["post-10929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tcpa","tag-compliance","tag-lead-generation","tag-tcpa","tag-tcpa-compliance","tag-trustedform"],"acf":[],"_links":{"self":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts\/10929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/comments?post=10929"}],"version-history":[{"count":0,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts\/10929\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/media\/10931"}],"wp:attachment":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/media?parent=10929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/categories?post=10929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/tags?post=10929"},{"taxonomy":"ap-post-type","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-type?post=10929"},{"taxonomy":"ap-post-industry","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-industry?post=10929"},{"taxonomy":"ap-post-product","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-product?post=10929"},{"taxonomy":"ap-post-topic","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-topic?post=10929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}