ARTICLE
19 August 2025

SMS Verification Codes And The Personal Data Protection Board's Guideline Decision No. 2025/1072

E
Egemenoglu

Contributor

Egemenoglu is one of the largest full-service law firms in Turkey, advising market-leading clients since 1968. Egemenoğlu who is proud to hold many national and international clients from different sectors, is appreciated by both his clients and the Turkish legal market with his fast, practical, rigorous and solution-oriented work in a wide range of fields of expertise. Egemenoğlu has been considered worthy of various rankings by the world’s most leading and esteemed rating institutions and legal guides. We have been ranked as Recognized in “Project and Finance” and “Mergers and Acquisitions” areas by IFLR 1000. We also take place among the top- tier law firms of Turkey at the rankings of Legal 500, at which world’s best law firms are regarded, in “Employment Law” and “Real Estate / Construction” areas. Also our firm is regarded as significant by Chambers& Partners in “Employment Law” area as well.
The Personal Data Protection Board's Guideline Decision dated 10 June 2025 and numbered 2025/1072 introduces significant regulations regarding personal data processing activities...
Turkey Privacy

The Personal Data Protection Board's Guideline Decision dated 10 June 2025 and numbered 2025/1072 introduces significant regulations regarding personal data processing activities conducted through SMS verification codes, which have become a widespread practice in commercial life. The decision requires significant adjustments to customer relationship management, particularly in the service and retail industries.

1. The Current State of the SMS Verification System and Legal Issues

Complaints received by the Authority reveal a core issue: during the provision of products and services, data controllers request SMS verification codes on the stated grounds of finalizing payment or for the issuance of an invoice, yet use those codes to obtain explicit consent to send commercial electronic messages. This practice violates the fundamental principles of the Law on the Protection of Personal Data No. 6698.

The principle of explicit consent, as described in Article 3 of the Law, has three key elements:

  • Relating to a specific subject matter
  • Be based on prior information
  • and be expressed through free will

Under current practices, data subjects are misled as to the object of their consent; consequently, the consent cannot be regarded as "informed." Moreover, when access to a product or service is conditioned on agreeing to receive commercial electronic messages, the requirement that consent be "freely given" is not satisfied.

As emphasized by the Personal Data Protection Board (Decision No. 2020/173, dated 27 February 2020), when explicit consent is made a precondition for the supply of a product or service, the element of free will is compromised and valid explicit consent cannot be said to exist. This jurisprudence likewise serves as one of the principal foundations of the Board's Guideline Decision.

2. Regulations Introduced by the Guideline Decision

The Board's Guideline Decision imposes clear, actionable obligations on data controllers. First, pursuant to the principle of layered information, the purpose of the SMS verification code and the legal consequences of providing it must be clearly and intelligibly communicated to the data subject. This information must be delivered both orally by the controller's personnel and in writing within the content of the SMS.

Second, the use of a single verification code to perform more than one legal act is prohibited. Separate mechanisms must be implemented for transactions that entail distinct legal consequences-such as approval of a membership agreement, procurement of explicit consent for the processing of personal data, and authorization for the transmission of commercial electronic messages-and explicit consent must be obtained separately for each.

Third, obtaining explicit consent for the sending of commercial electronic messages cannot be presented as a mandatory condition for the provision of products or services. As expressly stated in the Decision, data subjects must be clearly informed that permission for commercial communications is not a precondition for completing the transaction, and that the transaction can still be finalized even if no SMS verification code is provided for that purpose.

Fourth and final provision: data controllers are required to conduct periodic training and awareness-raising activities for the personnel involved in these processes. This requirement is regarded as part of the administrative measures on data security set out in Article 12 of the Law.

3. The Relationship Between the Obligation to Inform and Explicit Consent

Under Article 10 of the Law, the obligation to inform must be fulfilled at the time personal data are obtained by the data controller or a person authorized by it. This obligation must be discharged independently of the collection of explicit consent. As expressly emphasized in the Guideline Decision, the obligation to inform and the act of obtaining explicit consent must be carried out separately.

As set out in the Communiqué on the Procedures and Principles to be Complied with in Fulfilling the Obligation to Inform, information notices must be clear, intelligible, and accessible. Because it is not technically feasible to include the entire notice within SMS content, layered information method should be adopted. The first layer should provide the essential information, and data subjects should be directed to online platforms for the full notice.

4. Legal Penalties and the Liability Regime

Upon non-compliance with the Guideline Decision, administrative fines shall be imposed pursuant to Article 18 of the Law. For 2025, the ranges are TRY 68,083-1,362,021 for violations of the obligation to inform, and TRY 204,285-13,620,402 for processing personal data without the data subject's explicit consent (3).

The unlawful processing of personal data may also constitute a violation of personal rights. Under Article 58 of the Turkish Code of Obligations, individuals whose personality rights have been violated may seek compensation for intangible damages.

This approach is clearly reflected in the Court of Cassation's case law. For example, in one judgment, a mobile line was established in the plaintiff's name by using the plaintiff's identification details without the plaintiff's knowledge or consent, and by forging the plaintiff's signature. When the bills went unpaid, execution proceedings were started against the plaintiff, who was compelled to file a negative declaratory action. The Court of Cassation established that the telecommunications company had failed to exercise due diligence in selecting and effectively supervising its branch/vendor, and that this lapse of diligence violated the plaintiff's personality rights; on that basis, it upheld the claim for non-pecuniary damages (4th Civil Chamber of the Court of Cassation, E. 2019/979, K. 2019/2679). (4)

Furthermore, the Board has the authority to order the suspension of data processing activities. In cases of repeated or systematic violations, that authority may be exercised to suspend in full specific processing operations undertaken by the data controller. Such measures entail significant operational risks, particularly for business models reliant on customer data.

5. Measures Required for Compliance

Data controllers should undertake a comprehensive transformation process to achieve compliance with the Guideline Decision. At the technical infrastructure level, separate authorization mechanisms should be established for distinct purposes. SMS delivery systems should be reconfigured to generate customized content for each type of transaction. In particular, messages seeking consent for the sending of commercial electronic messages must clearly state that such consent is optional.

From an operational standpoint, all procedures across customer touchpoints should be reassessed. Detailed operating procedures should be prepared for sales personnel, call-center agents, and digital channel managers. These operating procedures must set out what information must be provided in each scenario, the exact wording to be used, and which behaviors are to be avoided.

From a legal compliance perspective, the status of existing customer databases must be reviewed. Consents obtained through defective methods lack legal validity; processing predicated upon them must be discontinued immediately. Where necessary, fresh explicit consent should be obtained from customers using procedures compliant with the Law's requirements.

At the corporate governance level, data-protection compliance programs must be developed. These programs should include periodic internal auditsrisk assessments, and remediation plansActive involvement by senior management and the allocation of necessary resources are essential to ensuring effectiveness.

6. Conclusion and Assessment

The Personal Data Protection Board's Guideline Decision No. 2025/1072 emphasizes the principles of transparency and fairness of data-processing activities conducted via SMS verification codes. This decision marks a significant step in Turkey's alignment with the European Union acquis on personal data protection.

For data controllers, while this decision may entail short-term operational challenges and additional costs, it offers significant long-term opportunities to build customer trust and to develop sustainable business models. Businesses that adopt a proactive approach to personal data protection will gain a competitive advantage and position themselves as trusted actors in the digital economy.

Upon its publication in the Official Gazette on 26 June 2025, the Guideline Decision entered into force and the compliance process for data controllers began. The Board's omission of any transitional period is predicated on the view that these practices were already contrary to law. Therefore, data controllers must immediately take the necessary measures and complete their compliance efforts.

In conclusion, the Guideline Decision constitutes a turning point for promoting data responsibility and institutionalizing an ethical culture of data processing. Recognizing that the future of the data economy rests on trust, compliance with this framework constitutes not only a legal obligation but also an essential condition for sustainable growth.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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