Dive Brief:

• In early June, PayPal announced that it would contact customers with automatic phone calls and texts for marketing purposes. Last week, PayPal announced it would change its user agreement amid concern the calls and texts violated federal laws.
• The FCC warned PayPal stressing the calls were legal only if customers had given the company written or oral consent to receive them.
• Customers will receive an e-mail that will highlight the recent changes that PayPal has made. They will be able to revoke consent for receiving the 'robocalls' by contacting customer support.

Dive Insight:

"Again and again, Americans have demanded that companies stop invasive robocalling to promote their products," New York Attorney General Eric Schneiderman told NBC News.

Companies should keep in mind the illegality of unsolicited calls and texts and should ask for consent before carrying them out, the FCC noted. Doing otherwise can result in the violation of the Telephone Consumer Protection Act and can result in penalties of up to $16,000 per call for the company, its service provider and its affiliates.

While expressing consent to receive automated calls and texts, consent should also be uncontested. It must be clear to which phone line customers desire to be contacted. Likewise, there must also be a clear distinction between the company's user agreement and customer's permission to receive the calls and texts. Customers' permission to be contacted should not be bound to the company's user agreement.