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- This text message costed this brand $10,000
This text message costed this brand $10,000
One lawsuit changed everything for this $10M brand
Hey there, it’s Patrick from TVG.
I was on a call last week with a brand doing $10M+ in annual revenue interested in working with us.
They had a solid SMS strategy. Good flows, decent revenue attribution, all the usual stuff.
Then they got sued.
One text message. One California resident. $10,000 in legal fees and settlement costs.
The violation? Quiet hours.
This is the SMS compliance crisis nobody's talking about.
The legal landscape has shifted dramatically.
TCPA lawsuits are exploding.
Texas just implemented new regulations.
Quiet hours violations can cost $500-$1,500 per message.
Area codes don't reflect where people live. Carrier outages happen. Platform "compliance" features update AFTER the violation occurs.
What we're seeing smart brands do:
Segment Out at Risk Segments (Texas & California)
Double down on email (much safer legally)
Focus on retention through other channels (loyalty programs, exclusive offers, VIP experiences)
Build stronger email flows to replace SMS revenue
The brand I talked to?
They shut down SMS completely.
Yes, they lost some revenue. But they also eliminated millions in potential liability.
Here's the reality: SMS was never the magic bullet.
The brands crushing it with retention aren't doing it because of SMS. They're doing it because they have systems. Email systems. Loyalty systems. Product systems. Customer experience systems.
SMS was just one channel. And right now, it's a dangerous one for some brands.
If you're doing $1M+ in revenue and want to maximize your retention strategy:
Book a free CORE Audit with us.
We'll audit your entire retention strategy: email, SMS, loyalty opportunities, the whole stack. We'll show you how to build a retention engine that doesn't put your business at legal risk.
If you want to protect your business while building better retention, apply here:
Talk soon,
Patrick O’Driscoll
