What Are the Costs of Non-Compliance with DNC Laws?

Type: Blog
Topic: Do Not Call Solution

Violating Do Not Contact (DNC) laws can lead to steep fines, lawsuits, and reputational damage. Regulations like the Telephone Consumer Protection Act (TCPA), the FTC’s Telemarketing Sales Rule (TSR), and state-level laws all impose strict requirements for managing opt-outs and consumer communication preferences.

Whether you’re calling, texting, or emailing, the risks of non-compliance increase with volume, automation, and the number of systems involved. Before you make your next contact attempt, consider the different ways non-compliance can cost your business:

• Regulatory fines and penalties
• Class action lawsuits
• Reputational harm
• Operational disruption
• Lost revenue from blocked or restricted outreach

In the following sections, you’ll find information on:

What Can Happen If You Don’t Comply With DNC Laws

1. Regulatory Fines and Penalties

Laws like the TCPA and TSR allow regulators to impose steep fines for each violation. For example, under the TCPA, businesses may be fined up to $1,500 per call or text if they contact someone without proper consent. Multiple violations can quickly add up, especially for large outreach campaigns. The FTC and state attorneys general have pursued multi-million-dollar cases against companies that failed to follow DNC rules.

2. Class Action Lawsuits and Litigation Risk

Non-compliance doesn’t only invite regulatory scrutiny. Consumers can also take legal action. TCPA class actions are increasingly common, often triggered by a single unwanted message. Plaintiffs can seek statutory damages that multiply quickly across large contact lists. Some law firms specialize in representing serial plaintiffs who look for companies with weak consent practices.

3. Reputational Damage

Few things erode customer trust faster than being contacted after opting out. Negative word-of-mouth, online reviews, and public complaints can hurt brand equity, especially in industries where trust and credibility are crucial. Even if no legal action is taken, the fallout from bad press can be hard to repair.

4. Operational Disruption

Investigations, complaints, or litigation can tie up internal resources. Legal, compliance, marketing, and IT teams may all need to pause their work to respond. Campaigns can be delayed or shut down altogether. In some cases, companies are forced to implement costly and time-consuming policy overhauls just to regain compliance.

5. Missed Revenue Opportunities

The financial impact of compliance failures isn’t limited to fines. If your domain gets flagged, your calls are marked as spam, or your emails are blocked, outreach efforts stop connecting with your audience. Over-suppression due to poor data hygiene can also shrink your reachable market, leaving potential revenue on the table.

How to Build a Proactive Compliance Strategy That Protects Your Business

Avoiding these risks requires a strategic and well-documented approach to DNC compliance. Focus on:

• Centralizing suppression and consent data across all communication systems
• Using real-time scrubbing tools to prevent outreach to opted-out contacts
• Training staff regularly on applicable laws and internal procedures
• Maintaining audit-ready logs of all consents, opt-outs, and revocations

PossibleNOW helps enterprise organizations manage compliance across voice, SMS, email, and more. Our DNC solution scrubs against national and internal lists in real time, while MyPreferences® centralizes consent data across platforms. We also offer TCPA compliance services to support defensible, scalable contact strategies. Contact us today to get started with a free demo.

About PossibleNOW

PossibleNOW is the pioneer and leader in customer consent, preference, and regulatory compliance solutions. We leverage our MyPreferences technology, processes, and services to enable relevant, trusted, and compliant customer interactions. Our platform empowers the collection, centralization, and distribution of customer communication consent and preferences across the
enterprise. DNCSolution addresses Do Not Contact regulations such as TCPA, CAN-SPAM and CASL, allowing companies to adhere to DNC requirements, backed by our 100% compliance guarantee.

PossibleNOW’s strategic consultants take a holistic approach, leveraging years of experience when creating strategic roadmaps, planning technology deployments, and designing customer interfaces. PossibleNOW is purpose-built to help large, complex organizations improve customer experiences and loyalty while mitigating compliance risk.