Although SMS marketing is commonly used as a communication tool, it should not be at the cost of the customer's privacy. Companies should follow guidelines to ensure that only relevant information is sent and that there is no unauthorized use of customer information.

SMS marketing is a popular technique nowadays that businesses use to communicate with their customers. However, it does have its downside. There is a danger of customers losing confidence in this system of marketing due to privacy issues and spamming. This is why SMS marketers should have a clearly defined terms and conditions to ensure that the consumer's best interests are protected. After all, customer loyalty is more important to a brand in the long run than advertising or communicating programs.

As of now, there is a lack of clear cut legislation regarding SMS marketing. However, mobile communication and advertising groups such as the MMA (Mobile Marketing Association) have certain guidelines laid down to protect consumers. The use of SMS as a marketing tool should be limited so as to provide the consumer information that he has requested. Customized messages that serve as reminders, or information related to discounts, contests, promotions and sales that the customer has requested to be kept abreast of can be sent but not unsolicited messages.

Informing the customer - A SMS marketing company should inform the consumer about the terms of their marketing program. This information which should be included in the terms & conditions should clearly state the identity of the marketer, the type of products or services offered, and spell out the nature of interaction that would take place between the customer and the company. This information is essential for the purpose of helping the customer make an informed choice whether to subscribe to the program or not.

Opt in and Opt out - Once the customer accepts the terms and conditions of the program, he should give his consent for and opt in through the prescribed form of communication. This can be a SMS, email, voice message, registration online or any other legal means of communication. In addition to this, the SMS marketing firm should also give the customer a chance of opting out of the service if he no longer chooses to get advertising messages. The opt out procedure must also be made clear to the customer and this could again be done through one of the methods of communication mentioned above.

Information security - The SMS Marketing firm should in no way divulge the personal details of the customer without his consent. In fact, they should have clear cut procedures and technical systems in place to make sure that customer information is not disclosed, shared, accessed or put to unauthorized use in any way.