Changes to SMS eco system and impact on Cannabis companies
The three major carriers (AT&T, T-Mobile, Verizon) are shifting to a new system called 10DLC which will require the vetting of “Brands” (meaning the specific business) that are sending SMS messaging through the carrier networks.
Since cannabis is illegal on the federal level and carriers are regulated by the federal government at the current time, carriers are prohibiting cannabis-related messaging content, therefore it will not be possible to vet “Brands” that sell cannabis.
Given these changes, Splango is suspending cannabis-related SMS messaging. Email messaging will be unaffected by these changes.
AT&T is starting the vetting process 3/1/2021 and will block all non-vetted messaging 6/1/2021.
T-Mobile has announced they will begin the same process starting 4/1/2021 and in addition will be imposing steep fines for companies attempting to evade the additional new rules they are implementing (see below):
- Text Enablement: $10,000 (This pass-through fee would apply if T-Mobile received a complaint where traffic is being sent from a long code prior to the program being fully approved by T-Mobile.)
- Grey Route: $10 for each 10DLC message sent through a grey route. (This pass-through fee would apply if A2P messages are attempted to be routed as P2P messages after 10DLC is enabled.)
- 10DLC Long Code Messaging Program Evasion: $1,000. (The pass-through fee would apply if a program is found to use evasion techniques like snowshoeing, unauthorized number replacement, and dynamic routing.)
- Content Violation: $10,000. (T-Mobile may charge this pass-through fee for each unique instance of the third or any subsequent notification of a content violation involving the same content provider. Content violation is defined as sending messages in violation of the rules in the Code of Conduct, and are usually SHAFT violations (Sex, Hate, Alcohol, Firearms, Tobacco) but would also include spam or phishing. SHAFT includes CBD/marijuana/vaping-related content.
Verizon has not given specifics but has announced they will be following the other carriers to implement 10DLC registration.
Options moving forward:
- In the coming days we will release an update to the Splango Kiosk app that will allow you to automatically prompt customers who have signed up with SMS to provide their email address to continue receiving messages.
- We will also provide an update to the dashboard to allow for adding more content to email messages.
- Your account includes unlimited email messaging, so for many accounts this should provide a significant cost savings over sending messages via SMS.
- We will continue to monitor the SMS messaging industry changes and let you know if any regulatory changes happen which will once again allow the sending of cannabis content via SMS.