If your dispensary or cannabis-related website uses SMS marketing, you’ve probably heard about upcoming A2P 10DLC requirements. The details around this are fluid and changing, but we will use this article to clarify what is happening and what you need to do.
First of all, let’s start by breaking down the acronyms used by the telecommunication carriers:
- 10DLC – 10 digit long code. A standard phone number such as +1-833-914-1105 vs a short-code. Typically costs $1/month to lease.
- A2P – Application-to-Person (A2P) is a type of text message sent from an application, e.g. DailyStory, to a person, e.g. you, sent over a 10DLC
- Short-code – a 5-6 digit phone number used exclusively for SMS marketing. Typically costs $500+/month to lease.
- Carriers – Telecommunication companies such as AT&T, T-Mobile, and Verizon.
The majority of SMS marketing is performed using 10DLC vs. short-codes.
What is A2P 10DLC compliance?
In early 2021 phone carriers (AT&T, Verizon, etc.) have begun to further restrict SMS marketing by rejecting messages as “carrier violations”. At the same time they have also added new surcharges for A2P 10DLC text messaging. And, simultaneously introduced new business registration requirements for A2P 10DLC SMS marketing.
The telecommunication carriers state they are “updating their systems to delivery better quality and lower filtering” for certain businesses that use 10DLC A2P.
What is the new A2P 10DLC business registration process?
If you are sending SMS marketing using A2P 10DLC, the update requires you register and pass an approval process. This includes details such as:
- Creation of a business profile with either EIN or DUNS number
- Business address
- Identifying business points of contact
- Describing and classifying the type of business
Several popular text message gateways, Twilio and Plivo, provided guidance on the new A2P registration process. DailyStory will continue to provide guidance on this new requirement as it evolves.
However, we are concerned that this will be used to more easily identify and restrict businesses that carriers deem objectionable. Such as cannabis and CBD businesses.
How should I plan around this?
We know how important SMS marketing is to your business. Unfortunately we expect A2P 10DLC restrictions to increase, not decrease. Especially until cannabis is federally legalized. We do continue to recommend using SMS marketing, but we also recommend investing in other marketing channels (email marketing, social, SEO, etc.).
What you should do
We recommend all DailyStory customers follow the guidance outlined here:
How cannabis retailers and dispensaries stay in compliance with text messaging
