A Practical Guide to Implementing an SMS Privacy Policy

In March 2025, Designer Shoe Warehouse (DSW) agreed to pay $4.42 million to settle a class action suit related to marketing texts sent to customers who had opted out of marketing communications.

This was not an isolated incident in recent years. As SMS marketing grows and becomes more widespread around the world, the actual risk is not just fines, but trust, reputation, and years of remediation.

An effective SMS privacy policy that is paired with auditable consent and offers an instant opt-out will keep your SMS marketing program compliant and credible. This guide will explain what an SMS privacy policy is, what should be included in it, how rules differ by region, and how to implement it in practice.

What is an SMS privacy policy?

An SMS privacy policy is a legal document that outlines how your business collects, uses, stores, and protects the personal information of individuals when communicating with them via text messages.

SMS privacy policies differ from general privacy policies in that they describe the unique aspects of mobile messaging related to consent, opting out, and handling personal data. SMS privacy policies achieve three things at once:

1. They create transparency about your data practices.

2. They legally establish consent to engage in SMS messaging activities.

3. They demonstrate compliance with various privacy laws.

SMS privacy policies are required for businesses using the SMS platform and are formally required for all means of texting, from 10DLC registration in the USA to toll-free SMS.

The SMS privacy policy must describe the personal data that is collected through SMS interactions, how that data is used, who might have access to it, and how individual customers can exercise their privacy rights.

This transparency is required by law and regulation, but it also builds trust with customers. As data privacy remains a growing concern for many individuals, transparency can go a long way in fostering and maintaining trust.

SMS privacy policy legal requirements by region

Key components of a regulatory-compliant SMS privacy policy

Creating a concise and informational SMS privacy policy that describes how you use customer phone numbers can help meet SMS compliance guidelines and customer promises. A good SMS privacy policy would serve as a practical checklist to ensure transparency around each component of your SMS program.

Collecting customer data

Be transparent about how you collect and use customers’ phone numbers. You must let them know why you need their number. In most cases, it would be to send SMS communication they’ve agreed to receive, such as promotions or alerts. In other instances, you may also use them to improve message delivery.

You may need to run a quick check to confirm the number is valid and active, which will help ensure your messages are routed through the appropriate mobile carrier and delivered reliably.

It should also be clear that you are not selling or renting their contact information. If data is shared with any other service providers for sending messages, this should be mentioned. Users should be notified if there is a chance that data can be transferred as a result of a business sale or merger.

Consent gathering

Briefly explain how you obtained the user’s permission before sending text messages (typically either through a phone number on an online form, or SMS opt-in data).

Clarify what type of messages the user is opting into and how frequently they may receive them. You must list all of the ways the user can stop receiving messages. For example, they can reply “STOP”, click a link, or call a phone number. You will also want to mention how quickly requests for opting out will be processed.

Retention policies

Specify the amount of data you will retain for each user. You will indicate that you keep subscribers and consent only as long as the law requires. If requested, you will delete users’ PII in a reasonable period.

Security precautions

Summarize exactly how you protect data, for example, by using encryption and limiting access to trusted staff. State that you make sure to review and update security practices regularly, and that breaches are reported as quickly as possible.

Third-party service providers

Message users that your partners (such as your SMS provider) or other vendors may have access to their data, and that these partners are also required to protect the data and comply with applicable laws. If a partner were to experience a data breach, you would also notify users as quickly as possible.

User rights and contact information

Inform users of their rights over their data, including access and deletion. Provide them with an easy way to contact you (an email address or web form) so they can submit their request, and explain what happens after they submit it.

Implementing your SMS privacy policy

Creating the policy is just the beginning. The next step is to actively manage it to achieve the desired effect.

You should share your privacy policy on a dedicated web page, for example, yoursite.com/sms-privacy, and make it as visible as possible by making links to it in your website footer, SMS opt-in forms, and mobile app settings.

Since most users will likely be accessing the policy on mobile devices, you will also want to ensure that it is mobile-friendly, uses plain language, and is easily accessible.

When it comes to SMS sign-up forms, you should also plan to have the policy linked directly into the forms by placing links next to the consent checkboxes or even using pop-up modals to inform users of the privacy policy.

If your company uses an SMS API, provide clear documentation of your privacy parameters. Messente has created a tool to automatically blacklist users who click on your unsubscribe option. It also maintains a record of auditable actions to help automate privacy compliance and reduce manual administrative errors.

Do not forget that your SMS privacy policy is a living document.

It should be reviewed and updated regularly based on legal developments, changes in business practices, or product feature changes.

If there are changes made to the policy, notify your users immediately via SMS, email, or website postings. When a policy change occurs, train your team on the changes and ensure their technical systems are updated.

SMS privacy policy examples

To help you get started, below are some templates that can be changed to meet your business needs. Remember to get any legal document checked by your legal counsel before publishing.

This template covers the necessary clauses for a small business with uncomplicated SMS terms.  

SMS privacy policy for small businesses

This SMS privacy policy example shows how we collect, use, and share information when you opt in to our text messaging program.

Information Collection: We collect your mobile number and any information you provide to us when you subscribe to our SMS service. This may include a name and messaging history with us.

Use of Information: We use your phone number to send you text messages with [described purpose, e.g., promotional offers, appointment reminders, and company updates].

Sharing of Information: We do not sell or share your personal data with third parties for their own SMS marketing purposes, but we may share your information with our messaging vendor, Messente, so that they can deliver our text messages to you.

Opting Out: To stop receiving text messages, respond with "STOP." We'll send a confirmation message to ensure you're no longer receiving messages from us.

Security: We will take reasonable safeguards to protect your information.

Contact Us: If you have any questions regarding this policy, please feel free to reach out to our organization's regulatory compliance team at [your email address].

Enterprise privacy policy template

This privacy policy example is suitable for larger organizations with a global reach, and it could be built on top of the basic one, including more sections such as:

International Data Transfers: Discussing how data is treated for users in different regions (e.g., EU, US), by relying on things like Standard Contractual Clauses for transfers outside of the EU.

Data Subject Rights: Enumerating user rights under the GDPR and CCPA, including accessing their information, rectification of incorrect information, deletion of specific data, restricting processing of their information, and providing a simple way of submitting a request.

Data Retention: A detailed policy that identifies retention periods for different types of data (e.g., contact information, messaging logs) based on business needs and legal obligations.

Using Analytics and Subprocessors: Identifying any use of analytics (if applicable), and listing any other subprocessors of data that will handle data as part of the service.

Industry-specific opt-in clauses

Businesses that operate in highly regulated industries may need to add more clauses to their privacy policies, such as:

For Healthcare (add to "Use of Information"): "Keep in mind that our SMS messages are for general discussion and reminders only. We will never send Protected Health Information (PHI) directly through text messages. To access sensitive health information, please log into our secure patient portal at xyz@hospitalABC.com."

For Finance (add to "Security"): "We strictly comply with heightened security standards for all finance-related communications, in compliance with industry regulations like DORA. All sensitive data sent is encrypted, and we regularly audit our systems to verify compliance."

SMS privacy policy best practices

Compliance is not just a one-time activity; it is a continuous commitment! If you follow these best practices, you can keep your SMS program legitimate and trusted so that you stay compliant over time.

Plain language and mobile-first

Your privacy policy should be written for your customers, not just your lawyers. Use clear, simple, and direct language.

You should not bury legal answers in dense legalese.

Also, since most users will read it on a phone, ensure that the content is published on a mobile-responsive webpage with a readable font size and ample whitespace, enhancing your customers' ability to read and internalize your policies.

Version control and change notices

Your business and the regulatory environment will change.

It is prudent to maintain a journal of dated versions of your company's privacy policy that have been used. If you ever make a change to how you collect, use, or share your data, then you must notify your subscribers explicitly.

Training staff

Compliance is a team effort.

Everyone on your team who uses the messaging platform or interacts with customer information in any way needs to be trained on the principles outlined in your company's privacy policy.

A compliant messaging platform such as Messente allows for the development of different user roles and permissions (i.e., Administrator vs. Sender), ensuring that team members only see what they need to do their jobs.  

Compliance audits

Plan on doing a complete review of your entire SMS service from time to time.

At least once or twice a year, audit your opt-in data, generic message templates, and contact lists to ensure compliance and proper segmentation. Internal audits help identify possible issues before they become serious challenges.

Conclusion

An effective SMS privacy statement is your long-term investment, not just a regulatory requirement. When you have a clear and transparent SMS program that is well-implemented, it establishes trust with your customers, fosters brand loyalty, and enhances engagement and performance outcomes.

Rapidly evolving SMS regulations and complicated SMS terms will be a breeze to manage when you’re partnered with a compliant and secure SMS platform that allows you to focus on building customer relationships.

By combining explicit legal consent practices with guidance from your organization’s regulatory compliance team and appropriate legal counsel, you can design an SMS privacy policy that not only meets legal demands but also safeguards your brand and customers effectively.