Back in December 2023 we wrote this article to keep you informed about the matter.  This blog is now updated as of July 2024 following changes that have been made and what we have learnt from industry experts.

Last year, the FCC order sparked significant debate and apprehension, particularly regarding the mandate for a single consent mechanism for both lead sellers and buyers. While the order primarily focuses on SMS messages and robocalling, it is widely acknowledged that the proposed changes will fundamentally alter the landscape of lead generation, especially in terms of consumer consent.  This will impact the way Lead Sellers and Lead Buyers exchange personal data and will require technology companies like LeadByte to flex with their tech to accommodate the needs of both parties.

For years, many businesses within the industry have been stretching the limits regarding consent acquisition. Consequently, this has resulted in a surge of low-quality leads and eroded consumer trust in consent-based offers, primarily due to subpar experiences. These leads are frequently resold, leading to an excessive influx of calls and texts for consumers, ultimately resulting in diminished contact rates and decreased conversion rates for Lead Buyers.

In the UK, we went through the changes in consent with GDPR.  This required much change, impacting Lead Sellers, Buyers and technology companies (like LeadByte).  It all worked out OK.  We believe we have a better industry for it and we are confident that the USA market will adapt and see the positives from it. 

This article is written from the perspective of industry professionals navigating the FCC's recent consent changes. It is aimed at both lead sellers, entities that generate and sell lead data, and lead buyers, entities that acquire leads from sellers.

‍

Key Takeaways

‍

New Developments:

• As of January 2025, one-to-one consent is crucial, requiring consumers to provide expressed written consent for each Lead Buyer they wish to be contacted by.  

• The scope has expanded to include calls, texts, and AI-generated calls, which weren't considered 30 years ago.

• Consent must be associated with the specific reason agreed upon, with clear disclosures about potential robocalls or robotexts.

‍

Rules: 

• One-to-One Consent: - Consent must be obtained on a one-to-one basis, authorising only one identified lead buyer to communicate with the consumer.

• Blocking Measures -  Mobile carriers are required to block text messages from certain phone numbers to comply with the new rule.

• Closing Loopholes - The changes aim to close the lead generator loophole and prevent consumers from receiving communications beyond their consent.

‍

Challenges for Lead Generators 

• Companies must obtain explicit consumer consent for each Lead Buyer.  For Lead Sellers working with multiple Lead Buyers multiple consent will need to be collected.

• ROI may be impacted for Lead Sellers due to consumers given the control on which Lead Buyer their data can be passed onto

• Challenges for smaller companies, emphasising the need to build their brand and knowledge base in order to be a recognized name to avoid being blocked by consumers. 

‍

Solutions in Practice 

• Lead forms must provide clear consent, and lead gen providers should record and store consent accurately.  

• Both the buyer and seller of leads must have a record of consent, which can be certified and stored in CRM systems.  

• Where Lead Sellers are working with multiple Lead Buyers, the Lead Seller will need to pre-ping their “panel” of Buyers to know who wants the lead / qualifies and therefore display to the consumer.

• Business Adjustments - Reviewing marketing strategies to comply with expanded DNC protections.

• Updating consent practices to require "prior express written consent" for each seller.

‍

Advantages: 

• Improved lead quality as consumers can choose brands directly.

• Advantages for larger companies with resources to invest in SEO and media campaigns.

‍

Considerations:

• New obligations for sellers using text messaging and requirements for mobile carriers.

• Revised methods for acquiring consumer consent, affecting third-party website operations.

• Impact on lead generators, necessitating specific prior express consumer consent at the point of use on comparison websites.

• The one-to-one consent requirement mandates that consent be specific to the seller/marketers.

‍

Recommendations: 

• As a Lead Seller, ensure you retain proof of consent.  As a Lead Buyer be sure that you only work with Lead Sellers that can demonstrate their journey.  Invest in your own media buying too!

• Be sure that the technology you use for lead buying or selling aligns with new FCC parameters.  As a Buyer you will need technology that enables you to make a purchasing decision based on partial data.  As a Lead Seller, you will need to be able to qualify what Lead Buyers may want to acquire your customer based on non personal data.  

• Involve legal counsel to review lead disclosures and ensure they capture one-to-one consent.

• Focus on branded campaigns and invest in SEO and pay-per-call campaigns to drive organic traffic.

‍

In conclusion, the FCC's consent changes mark a pivotal transformation in the landscape of consumer communication. By placing the power of choice back into the hands of the individual, these regulations herald a new era of consumer empowerment and data stewardship. 

As we navigate this shift, businesses must not only realign their marketing and lead generation strategies but also embrace the spirit of transparency and respect for consumer preferences that underpin these changes.

This evolution in consent practices is not just about legal compliance; it's about building a foundation of trust and integrity that will define the future of consumer relations. The key takeaways from the FCC's ruling underscore the importance of individual authorization and its far-reaching impact on how we connect with consumers, ensuring that every interaction is grounded in clear, unequivocal consent.

‍