On December 13th, the FCC is expected to vote on a proposed rule that would dramatically change the lead generation industry. The rule aims to close what the FCC sees as the “lead generation loophole” – obtaining consumer consent for multiple companies without specifying each one.
The panel discussion provided insight into the proposed rule. The biggest impacts would be on aggregators, who would no longer be able to share consents across multiple sellers. Small businesses that rely on aggregators to reach consumers would also struggle without alternative marketing channels. Large brands that partner with aggregators could face acquisition challenges as well. Consumers may have fewer options presented to them.
The rule requires direct, one-to-one consent between the consumer and the company providing the product or service. Aggregators obtaining blanket consent would not comply. Logical and topical relation between the consumer’s intent and subsequent offers will be scrutinized. Warm transfers and joint advertising may not meet the standard.
Industry members should use the next six months to carefully review processes and flows with legal counsel. Consent forms will need reworking to clearly identify the seller. Data currently on shared consents may still be marketed to via email to obtain direct consent. Litigation and regulatory enforcement are expected to increase, so compliance will be critical in the changing landscape.