Below is a recap of essential regulatory updates for contact compliance professionals for the month of June.
This is a marketing blog and not intended nor should be interpreted as legal advice. Please seek legal counsel for full interpretations of all rules and laws outlined in this blog.
Courts Not Required to Follow FCC Rules in Telemarketing Lawsuits
On June 20, 2025, the Supreme Court reconsidered the Ninth Circuit’s conclusion in McLaughlin Chiropractic Associates, Inc. v. McKesson Corp, making things a lot less predictable for companies making telemarketing calls or sending promotional texts. Up until now, if a business followed the Federal Communications Commission’s (FCC) rules or interpretations of the Telecommunications Consumer Protection Act (TCPA), they could usually expect some legal protection – even if a lawsuit was filed. Courts often looked to the FCC for guidance, and FCC decisions were treated as the final word.
The recent Supreme Court decision explained that requiring judges to always follow the FCC would upset the balance between government branches, since interpreting laws is a core judicial responsibility.
The Supreme Court’s decision alters the legal framework governing how courts address the TCPA in private litigation. The Court determined that the Hobbs Act, which gives appeals courts the power to review FCC rules before they are enforced, does not force trial courts to treat FCC guidance as binding in private lawsuits. Meaning, federal courts don’t have to accept a previously issued FCC interpretation on the same topic; as such, different courts in different parts of the country might disagree about what counts as a robocall, what kind of consent is needed, or what technology is allowed.
Key points to remember:
- What’s allowed in one state might be illegal in another.
- Businesses can’t lean solely on FCC rules as a defense.
- There’s significantly more legal uncertainty for all parties.
As a result, businesses should expect more variation and unpredictability in how TCPA lawsuits are decided. It is now especially important to keep careful records of consent and opt-outs, to stay up to date with new court decisions, and to be ready to adjust compliance programs quickly. Companies should continue to monitor both FCC updates and court rulings and be prepared for the possibility of renewed challenges to key FCC TCPA interpretations, since courts may now disagree with the FCC’s position in future cases.
In summary, this decision shifts some of the authority for interpreting telemarketing law away from the FCC and back to the courts. Companies must now treat compliance as a moving target, shaped by both agency guidance and the independent decisions of judges across the country.
New Texas Mini-TCPA Law Passed and Effective September 1, 2025
Signed by the Governor on June 20th, Texas Bill SB140 (amending Tex. Bus. & Com. Code § 302.001 et seq.) transforms the scope of telemarketing regulation by expanding the types of communications covered by telemarketing rules, granting consumers powerful new legal rights and establishing some of the country’s toughest penalties for violations. Businesses reaching out to Texans via phone, text, or multimedia messages should brace for increased regulatory oversight and greater legal risk.
Summary of new provisions:
- Broadens definitions for “Telephone Call” and “Telephone Solicitation”
- In addition to traditional voice calls, telemarketing now explicitly includes text messages (SMS/MMS), image messages, and virtually any digital message intended to sell goods or services
- Private Right of Action
- Introduced under the Texas Deceptive Trade Practices and Consumer Protection Act (DTPA) for violations of core telemarketing requirements (e.g. calling time restrictions, failing to honor opt outs, failure to register)
- Use of automatic dialing announcing device (ADAD, e.g., autodialers and robocall systems) is explicitly covered and enforceable under DTPA
- “Consumers will be able to seek both economic damages and damages for mental anguish, significantly increasing potential exposure in litigation”
- Consumers can sue for each violation with no limit on the number of lawsuits per consumer for repeated violations
- Increased Penalties/Unlimited Recovery
- Statutory damages range from $500 to $5,000 per violation, with potential for treble damages for knowing or intentional violations
- Consumers can bring repeated actions for ongoing or repeated violations, with no cap on recoveries
- Consumer Protections
- Businesses must obtain valid, documented consent for all forms of outreach and must provide reliable and prompt opt-out mechanisms
- More strict requirements for honoring opt-out requests, call time restrictions, and telemarketer registration
- Litigation Exposure
- Businesses face heightened risk of lawsuits, including class actions, for noncompliance
SB140 signals a major change in Texas telemarketing law, with consequences that could impact any business targeting Texas consumers. With the law set to take effect on September 1, 2025, companies have limited time to assess and strengthen their compliance practices. The penalties for failing to comply are substantial, and the risk of litigation is poised to increase dramatically. Businesses should move quickly to implement thorough compliance measures in preparation for this new regulatory environment.
Clarification: FCC’s Consent Revocation 10-day Timeline is in Effect
When the FCC issued the TCPA Order on April 7, 2025, delaying certain telemarketing consent revocation rules, it was unclear if the FCC delayed all 47 CFR 64.1200(a)(10) or just the rules requiring businesses to apply opt-outs across all communication types.
It’s still not exactly clear; no timeline (other than the delay) is mentioned in the Order. But the most popular published interpretations from the general legal community support the April 11, 2025, effective date honoring marketing consent revocation/op- outs within 10 days or sooner. Arguably, consent revocation applies immediately (no waiting period), so this delayed language just adds to the confusion.
Regardless, be sure your consent revocation timeline can meet or exceed this 10-business-day requirement to be compliant.
Gov. Abbott Signs TRAIGA (Texas Responsible Artificial Intelligence Governance Act) into Law
On June 22nd, the Sunday night before the 2025 bill enactment deadline, TRAIGA (HB 149) was signed into law by the Texas Governor. The new law applies to those promoting, advertising, or doing business in Texas, producing products/services used in Texas, or developing or deploying AI in Texas.
Proposed in December 2024 and modeled after Colorado and EU AI Acts, TRAIGA originally contained sweeping regulation of “high-risk” AI with substantial private sector requirements (e.g. consumer protection, impact assessments, disclosure).
Since March 2025, the bill was scaled back with the most onerous private sector obligations removed or limited to government entities, and with a new focus on prohibited uses such as behavioral manipulation and deep fakes. It’s interesting timing, given Congress’ proposed AI moratorium in the budget reconciliation bill, approved by the House of Representatives but in the Senate “has been met with backlash by both policymakers and advocacy groups that have argued the federal government’s inaction on overseeing AI systems makes movement by the states all the more important.”
TRAIGA does not specifically mention “AI-driven conversational compliance” or “artificial voices for telemarketing” by name, but the law’s broad definitions and prohibitions clearly encompass such technologies if they qualify as “AI systems” under the Act.
Companies engaging in telemarketing practices should know that while TRAIGA does not specifically regulate artificial voices in telemarketing, it does prohibit the deceptive or manipulative use of AI. If artificial voices are used in a way that could mislead consumers, this could risk a TRAIGA violation.
The effective date is January 1, 2026.
2025 Year-to-Date TCPA Litigation Continues to Trend Upwards
Through the first four months of 2025, the volume of telemarketing litigation has continued to rise, with class action lawsuits remaining the predominant form of legal action.
A total of 880 Telephone Consumer Protection Act (TCPA) cases have been filed, marking a 46% increase compared to the 604 cases reported during the same period in 2024.
The 691 class action cases filed between January and April 2025 are up 109% from the 331 class actions filed during the same timeframe last year.
Class action cases averaged 79% of all TCPA filings, highlighting a continued trend toward collective action and the pursuit of increased negotiating leverage against major defendants.
Even with the private right of action provision in TCPA, the dramatic surge toward class action litigation offers an additional advantage for class members by providing access to resources and legal expertise they might otherwise lack. By participating in a class action, members not only seek justice for their own grievances but also help deter future misconduct, benefiting both themselves and the wider public.
As a company utilizing telemarketing (calls or texts), be vigilant about regulatory developments and how they impact your business – the last year has been all about ‘consent’, so be sure you are honoring it correctly, timely, and without fail.
Source: Webrecon.
States Push Forward with More Proposed Telemarketing Law Changes in April and May Crackdown
Across the country, state lawmakers are advancing a wave of new and revised telemarketing legislation – each designed to tighten restrictions, boost consumer protections, and hold businesses accountable for unsolicited calls, texts, and automated outreach. See below for the latest state level activity.
Illinois HB 2435 – Amends Telephone Solicitations Act to ban telemarketing calls made with automatic dialing systems – unless the recipient has given explicit consent or has an established business relationship with the caller. Consent can be revoked at any time using the same method it was given. The law also prevents the transfer or sale of consent to third parties and introduces a private right of action, allowing affected individuals to seek $500 in statutory damages plus legal costs and attorney fees.
- Status: Passed House; awaiting final Senate action.
North Carolina HB 520 – Tightens stance against deceptive caller ID practices by increasing penalties for misrepresenting or blocking caller ID information, granting victims the right to sue (private right of action) and setting a civil penalty at $10,000 per violation.
- Status: Passed House, awaiting final Senate action.
- If enacted, effective December 1, 2025.
North Carolina HB 936 – Amends telemarketing law to prohibit “robocalls,” defined as a voice communication that uses artificial, computer-generated, or pre-recorded voice messages, including soundboard calls and ringless voicemails, without “prior express written consent.”
- Status: Passed House, awaiting final Senate action.
Oregon HB 3865 – Expands definition of “automatic dialing and announcing device” to include text messages; adds “telephone solicitation” definition and applies related obligations; requires (i) a method for the recipient to indicate they do want to receive future calls, (ii) caller name and purpose to be disclosed within first 10 seconds of call or in the initial text; restricts use of an ADAD outside of 9 a.m. to 7 p.m.; and prohibits more than 3 telephone solicitations in a 24-hour period.
- Status: Passed House, referred to Senate Rules Committee.
Massachusetts HB 3940 – Targets the practice of “spoofing” local numbers by prohibiting telemarketers from making or causing to be made an unsolicited telephonic sales call to a consumer using local phone numbers or area codes that are not linked to their physical location or place of business in Massachusetts.
- Status: Introduced (4/3/2025)
New York SB 6461 – Requires telemarketers to add a customer’s phone number to all do-not-call lists if the customer requests to be added to any one of them.
- Status: Introduced (3/14/2025), pending Senate.
New York AB 6853 – Bans unsolicited telemarketing sales calls during declared states of emergency, but only if the emergency declaration specifically states that such calls would interfere with emergency response efforts. The ban would last for two weeks at a time, with extensions possible if new findings of necessity are made.
- Status: Introduced (3/25/2025)
July Holiday Solicitation Bans
Please be aware of the following US holiday telephone solicitation bans for the month of July 2025:
- On July 4, 2025, Alabama, Louisiana, Nebraska*, Pennsylvania, Rhode Island, and Utah prohibit unsolicited sales and marketing calls to residents in observance of Independence Day.
- On July 24, 2025, Utah prohibits unsolicited sales and marketing calls to residents in observance of Pioneer Day.
Other holidays may be proclaimed by the Governor in each state throughout the year.
*Nebraska does not prohibit calls on Sundays or legal holidays. However, it does restrict the use of prerecorded messages from 1 pm to 9 pm on these days (subject to certain exceptions).
Please be aware of the following Canadian holiday telephone solicitation bans for the month of July 2025:
- On July 1, 2025, unsolicited sales and marketing calls to residents in all provinces are prohibited in observance of Canada Day.
Gryphon has updated its existing service parameters to reflect these solicitation bans.
Long-Known Robocall Scammer Permanently Banned from Industry Through Joint State and Federal Collaboration
John Spiller and his various companies—such as Rising Eagle Capital Group LLC, Rising Eagle Capital Group–Cayman, and JSquared Telecom LLC—have long been a focus of FCC attention. Following the detection and reporting of suspicious activity in 2018, an investigation singled out Spiller and his associates as responsible for nearly a billion robocalls, prompting the FCC to propose a then-record $225 million fine.
This officially imposed federal enforcement action was issued due to violations of the Telephone Consumer Protection Act (TCPA) and the Truth in Caller ID Act.
The robocalls targeted consumers on the Federal Do Not Call list, using false caller ID information, misrepresenting well-known health insurance providers, with intent to deceive recipients.
Even after the multi-million dollar fine, Spiller continued to operate under separate alias’s (in multiple states) launching new VoIP providers, violating a 2023 court order and barring him from participating in any business in the telecom industry.
Just days ago, a coalition of state attorneys general secured a district court ruling against Spiller to pay more than $600,000 in attorney fees and costs to eight states and permanently bar Spiller from operating in the telecommunications industry.
The coalition of attorneys general included Arkansas, Indiana, Missouri, Michigan, North Carolina, North Dakota, Ohio, and Texas.
Ohio Attorney General Dave Yost said “this scammer’s line is dead — and it’s not coming back.”
Timeline of Key Events:
UPDATE: Edison Electric Institute (EEI) and Power Companies Gain FCC Approval to Call or Text About Usage
(see Gryphon AI’s May 2025 Regulatory Report, under “NCLC Offers Strong Opinions on TCPA Challenges: EAI and EEI Petitions to the FCC”)
In a declaratory ruling issued by the Federal Communications Commission (FCC) on June 9, 2025, the EEI petition was granted and the FCC confirmed demand response communication “calls and texts are “closely related” to the utility service.”
This means “when a consumer gives a utility their phone number, they give their prior express consent to receive non-telemarketing demand response calls and texts.”
This is a huge win for utility companies, who claim this action benefits consumers through enhanced grid reliability, cost savings, and by supporting newer technologies.
In strong opposition to the EEI petition, the National Consumer Law Center (NCLC) argued that implied consent was not enough and would reduce consumer control over unwanted calls and texts.
US QUIET Act (H.R. 1027) Gains Another Sponsor
The Quashing Unwanted and Interruptive Electronic Telecommunications Act (QUIET Act), which proposes disclosure of Artificial Intelligence (AI) use at the beginning of a telemarketing call, along with increased penalties for violations involving AI voice or text messages, now has 14 co-sponsors plus original co-sponsor Sorensen (IL), for total support of 15.
Additional co-sponsor:
- 06/04/2025: Rep. Jefferson Van Drew (R-NJ-2)
After FCC Commissioners Starks and Simington Departure, Two Commissioners Remain
In a June 4th statement, Commissioner Nathan A. Simington announced his tenure would end on Friday, June 6, 2025. He noted he remains “committed to advancing the cause of limited government, free speech, and American innovation. These principles guided my time at the Commission and will continue to shape my future endeavors.”
After his March 18 announcement stating his plans to leave the Commission, Commissioner Geoffrey Starks issued a formal statement on June 4, declaring his last day as June 6, 2025, expressing “serving as Commissioner has been the highlight of my career.”
The two remaining Commissioners include Chair Brendan Carr and “Democratic member, Anna Gomez, appointed by President Joe Biden.” A three-member quorum is required for business needing commission votes, “although some decisions can be made at the staff level, overseen by Carr.”
Senate Republication Olivia Trusty has been named but her confirmation is pending in the Senate.
New York State of Emergency Updates
Consistent with prior communications, Executive Orders declaring disaster emergencies in the State of New York trigger telemarketing restrictions under the Nuisance Call Act.
The Nuisance Call Act makes it unlawful for any telemarketer to make unsolicited telemarketing sales calls to areas of the state under an emergency declaration.
Executive Order 47.6, declaring a State Disaster Emergency in the State of New York arising from an illegal and unlawful strike by correction officers, was extended through July 6, 2025.
Note: New York Senate Bill (SB) S6853 was introduced on March 25, 2025, which if passed:
- Limits prohibition for longer than a 2-week (renewable) period.
- Limits restrictions to apply only when an emergency declaration specifically finds that telemarketing would impair emergency response.
- Provides clarity on when telemarketing is prohibited.
Executive Order 49, declaring a State Disaster Emergency in the State of New York based on severe storms in the area creating hazardous conditions, has been issued and will be effective through July 22, 2025.
Gryphon has extended State of Emergency blocks for New York to July 22, 2025, to ensure compliance with the above Executive Orders.
Olivia Trusty Confirmed by Senate as New FCC Commissioner
On June 17, a short time after Commissioners Simington and Starks officially exited on June 6, Senate Republican Olivia Trusty was confirmed by the Senate to the Federal Communications Commission (FCC). Trusty was confirmed in time for the FCC’s June 26 meeting, ensuring the board has a quorum and provides Republicans with the 2-1 majority.
FCC Chairman Brendan Carr issued the following statement:
“I want to extend my congratulations to Olivia Trusty on her confirmation to serve as an FCC Commissioner after President Trump’s nomination earlier this year. Olivia will be a great addition to the Commission. Olivia brings years of valuable experience to the agency, including her public service on Capitol Hill and time in the private sector. I am confident that her deep expertise and knowledge will enable her to hit the ground running, and she will be an exceptionally effective FCC Commissioner. I look forward to welcoming Olivia to the Commission as a colleague and advancing an agenda that will deliver great results for the American people.”
Commissioner Anna M. Gomez added: “I look forward to working with her to return the FCC to its core priorities of protecting consumers, promoting innovation and competition, and securing our communication networks.”
About Gryphon AI
Staying updated with the latest regulatory changes is crucial for any enterprise aiming to minimize risk and maximize reach. Gryphon AI is the only automatic, real-time, intelligent contact compliance solution on the market that delivers compliant, real-time intelligence into every customer conversation.
With Gryphon AI, enterprises can stay ahead of the regulatory curve and efficiently manage all regulatory changes, ensuring seamless compliance and operational excellence.
To learn more about how Gryphon AI can help you manage these updates, reach out to us today.