On July 14, 2026, the U.S. Court of Appeals for the Seventh Circuit issued a decision that meaningfully reshapes the landscape for businesses engaged in SMS marketing. The court…
On July 14, 2026, the U.S. Court of Appeals for the Seventh Circuit issued a decision that meaningfully reshapes the landscape for businesses engaged in SMS marketing. The court held that a text message is not a 'telephone call' within the meaning of Section 227(c)(5) of the Telephone Consumer Protection Act (TCPA). As a result, consumers within the Seventh Circuit may no longer bring 'do not call' claims under that provision based on unwanted marketing text messages.
The ruling represents a significant development for companies that rely on text-based outreach to communicate with customers. Section 227(c)(5) has historically served as a frequent vehicle for TCPA class actions, particularly those alleging that recipients registered on the National Do Not Call Registry continued to receive marketing communications. By concluding that text messages fall outside the plain meaning of 'telephone call' under this specific provision, the Seventh Circuit has narrowed one of the more commonly invoked pathways for TCPA liability arising from SMS campaigns.
For clients operating within the Seventh Circuit — which encompasses Illinois, Indiana, and Wisconsin — the practical effect is a meaningful reduction in exposure to 'do not call' claims tied to text messaging. Businesses that have faced or anticipated litigation under this theory may find that certain claims are no longer viable in this jurisdiction, and litigation-risk assessments for ongoing and future SMS marketing initiatives should be updated to reflect the decision.
Despite the favorable outcome, businesses should not interpret the ruling as a broad greenlight for unrestricted text marketing. The TCPA contains several other provisions that continue to apply to SMS communications, including restrictions related to automated dialing systems and prior express consent requirements. In addition, other federal circuits may reach different conclusions on the same statutory question, potentially creating a circuit split that would complicate compliance strategies for national campaigns. State-level consumer protection laws also remain a relevant source of risk.
Companies conducting text-based marketing should review their compliance programs in light of this decision, paying particular attention to jurisdictional reach, consent documentation, and evolving case law across circuits.
This article provides general information and should not be relied upon as legal advice. Clients are encouraged to consult with counsel for guidance tailored to their specific circumstances.