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Texting is easy, quick, and can be done anywhere and at any time. As such, it's a popular method for both personal and business communication: a full 70 percent of working professionals across the United States and Canada say texting is the fastest way to get ahold of them, according to the 2024 State of Business Texting Report from Text Request, a business messaging platform.
But expediency isn't necessarily everything. Experts say texting over a personal line to co-workers, investors, or shareholders in a professional context may not be the best practice -- and could even lead to serious litigation.
Here are a few things to keep in mind if you, or your employees, do business over text:
When in doubt, don't throw messages out. From a legal perspective, explains Joe Folio, a trial lawyer and partner at Morrison Foerster, text-based communications hold up just as much as emails or phone calls in court and must be preserved in the same way.
Of course, records should also be kept of messages sent through workplace communication platforms like Slack and Microsoft Teams, Folio notes. Given the recent increased scrutiny from the FTC and DOJ on "ephemeral" messaging platforms like Signal, which allow messages to automatically disappear shortly after being sent, he advises companies using any of these platforms to ensure that the auto-deletion option is turned off.
The consequences for not turning over messages to litigators when asked, Folio says, are harsh. Failing to produce Slack messages, for example, led Bia Capital Management and its founder to automatically lose a court case in 2022.
If Folio had his way, no company would have a "bring-your-own-device policy." He works solely on his designated company phone, and he suggests other business leaders follow suit, as it's the "only real way to keep everything separate and distinct."
Of course, not all business owners can afford two phones -- nor do all companies have the budget to provide every employee with a designated work phone.
In that case, Folio says, there should be clear policies in place regarding the acceptable use of text communication and the consequences for any violations that may arise. Pros recommend including these policies in an employee handbook. To further mitigate legal risks, you can also provide training to employees on compliance requirements.
That said, experts still recommend speaking with an attorney about text messaging policies. This is mainly because the bar for what is considered a business conversation, as opposed to an outside-of-work conversation, is "extremely low," Folio says. Anything from a text about a multi-million-dollar investment to a quick message asking for time off could be classified as a business conversation in court.
Generally, it's OK to text someone in an emergency; however, once you have their attention, Folio says the next step should be to immediately transition the conversation to a workplace device.
Text messages are often not encrypted, meaning they aren't very secure, says Abbe Depretis, assistant teaching professor at Carnegie Mellon University's Tepper School of Business. Experts suggest encrypting your messages and other phone data, and using more secure communication channels, such as Slack, whenever possible to help protect sensitive information.
One of the most critical problems to avoid is the disclosure -- even the accidental disclosure, such as if your phone is hacked -- of sensitive information, as it could subject your business to data protection laws like the California Consumer Privacy Act, says Charley Moore, founder and CEO of Rocket Lawyer, a San Francisco-based legal services company. The CCPA governs what personal information businesses can collect about consumers. Penalties for violating the law by mishandling or disclosing sensitive information can lead to penalties of up to $7,500 for an intentional violation and $2,500 per non-intentional violation.
But personal information isn't the only type of information that, if included in a text, could land you in hot water. Moore says founders often forget that text-based communications can constitute binding contracts. Therefore, he advises business owners to altogether avoid discussing contracts through text, so there's no question of whether a text demonstrated intent to enter into any kind of contractual agreement.
Even apart from all the legal and security risks involved, experts agree that texting doesn't allow for the most clear and direct communication. Character limitations and tonal discrepancies leave text messages open to interpretation way too often, says Lauren Morgan, a business law attorney at Activated Law. Generational differences in interpreting short-form texts add another layer of complexity, she adds.
"A recent exchange with my mom highlighted this: she thought 'p/w' stood for paperwork, while I interpreted it as a password," says Morgan. "Connectio[n] alone [doesn't] bring clarity to the diverse interpretations text leaves open."
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