The Federal Communications Commission (FCC) has recently implemented new rules regarding telemarketing lead generation, set to go into effect on January 27, 2025. These rules aim to close the “lead generator loophole” and ensure that consumers provide prior express written consent before receiving telemarketing calls and texts. It is essential for companies to understand and comply with these regulations to avoid potential penalties.
Under the current FCC rules, prior express written consent is required from consumers before receiving advertising or telemarketing calls and texts using automated systems or prerecorded messages. The consent must clearly disclose the authorization for telemarketing messages and cannot be a condition of purchasing any goods or services. Different forms of consent, including electronic, are acceptable under the E-Sign Act.
The new rules will require one-to-one consent between each seller and consumer, prohibiting lead sharing among corporate affiliates. Each seller must obtain consent individually, even if multiple sellers are promoted on a website or by a telemarketer. Additionally, all calls and texts must be logically and topically related to the consent provided by the consumer, based on their expectations.
It is crucial for sellers to ensure compliance with the new FCC rules, as they will be ultimately responsible for obtaining consent and maintaining proper records. Any leads collected under the old rules should not be contacted after the new rules come into effect to avoid potential risks. Sellers should also scrutinize vendors engaging in telemarketing activities to guarantee they are following the new rules and keeping accurate consent records.
A court challenge to the new rule, Insurance Marketing Coalition, Limited v. FCC, is currently pending, with oral arguments scheduled for December 18, 2024. Sellers should stay informed about the outcome of this case and any potential implications for the new regulations.
In conclusion, the new FCC rules aim to protect consumers and regulate telemarketing lead generation practices more effectively. Sellers must familiarize themselves with the requirements, ensure compliance, and monitor vendors to avoid any violations. By following the guidelines set forth by the FCC, companies can maintain a positive reputation and avoid legal issues related to telemarketing activities.
