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Sending a fax could cost you more than the technology used to send it. If you plan to use this communication channel to send out advertisements, you may want to keep reading. A failure to comply with the TCPA could cost your company much more than what you’ve budgeted for.

The implementation of the IP fax has introduced considerable efficiencies and cost savings for organizations throughout the world. It makes it much easier to send, receive and store faxes, eliminating the paper and supply costs normally associated with traditional faxing. Regardless of the platform, however, there are rules that must be adhered to if the fax is to be a business tool and not a source of litigation.

There are a number of rules that have been put in place to protect parties involved in fax broadcasting and solicitations. For instance, the owner of Tax Connection was held liable to the tune of $1.5 million for faxes sent out on his behalf. A class-action lawsuit alleged that the faxes were sent without prior express consent, which violated the TCPA.

While the owner wanted to separate himself from the actions of the company, the court found that he was liable as it was his consent and his signature on the check that initiated the fax broadcasting campaign. This direct, personal participation didn’t help his case and he was held personally liable for the violation of the TCPA for authorizing a campaign of more than 3,000 faxes to individuals who did not wish to be contacted.

Another professional faces potential liability up to $48 million. In this case, he didn’t send unsolicited faxes. Instead, he contacted individuals who had expressly authorized him to send faxes. The problem was he neglected to include opt-out language in the faxes. A simple failure to provide information has this executive in hot water. The same thing happened to a California company that failed to include all opt-out language. Recipients had no way to fax in their opt-out requests, thereby violating the TCPA.

A fourth company was found liable for sending five illegal faxes to more than 4,000 recipients over the course of four years. When the lawsuit was filed, none of the companies involved could produce proof of the first three faxes sent. In following negotiations, it was settled upon that the company would be held liable for the first three, but at a significantly reduced rate compared with the other two. The company’s insurers didn’t like this settlement and tried to fight it. The court ruled the insurance companies were liable to cover the cost, advising companies to review their coverage so they know the extent of their protection.

As these cases exemplify, it’s critical that companies understand the TCPA before sending any type of fax broadcast to a destination list. Working with a proven IP fax provider can help guide the process, providing a complete list of do’s and don’ts where the TCPA is concerned. After all, any business generated through a fax broadcast won’t make up for the potential millions in damages a company may have to later pay.