FCC Upends the Lead Generation Industry

The Federal Communications Commission (“FCC”) has adopted an order that will restructure the way lead generators collect consumer consent to receive robocalls or robotexts from sellers. Many businesses, particularly small businesses, rely on lead generators to advertise their products and obtain customers. Lead generation websites promote various products and services and often enable consumers to compare offerings from numerous sellers. Consumers complete forms on these websites that provide consent to receive autodialed calls or texts or prerecorded or artificial voice calls for marketing contacts covered by the Telephone Consumer Protection Act (“TCPA”). The consent may then be “sold” or distributed to numerous sellers that may offer products unrelated to the website. The FCC has determined that obtaining consent in this manner is invalid and instead will require lead generators to obtain written consent one seller at a time. The new rule will go into effect 12 months after approval by the Office of Management and Budget.  The FCC will be provide notification of the effective date.

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