{"id":10081,"date":"2025-01-29T09:43:06","date_gmt":"2025-01-29T15:43:06","guid":{"rendered":"https:\/\/activeprospect.com\/blog\/\/"},"modified":"2026-01-08T13:26:53","modified_gmt":"2026-01-08T19:26:53","slug":"the-fccs-1-to-1-consent-rule-is-gone-why-the-lead-generation-industry-should-still-move-forward-with-1-to-1-consent","status":"publish","type":"post","link":"https:\/\/activeprospect.com\/blog\/the-fccs-1-to-1-consent-rule-is-gone-why-the-lead-generation-industry-should-still-move-forward-with-1-to-1-consent\/","title":{"rendered":"The FCC\u2019s 1-to-1 Consent Rule is Gone: Why the Lead Generation Industry Should Still Move Forward with 1-to-1 Consent."},"content":{"rendered":"\n
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The online lead generation industry collectively breathed a sigh of relief on Friday, January 24th, after the FCC\u2019s new 1-to-1 Consent Rule for the TCPA was vacated by a successful petition from the Insurance Marketing Coalition<\/a>. This dramatic turn of events came just one business day before the rule was scheduled to go into effect on Monday, January 27th.<\/p>\n\n\n\n

The industry spent the past year preparing for this change, which required a massive collective effort. It was the most significant change I have witnessed in this industry in over 20 years. It has been the primary topic of industry conversation for the last year. Businesses were forced to rebuild their operating models entirely, effectively reworking how their websites and systems functioned. The FCC\u2019s announcement of the new rule, made right before Thanksgiving 2023, sent shockwaves through the industry. It essentially rendered the standard practices of many comparison websites illegal.<\/p>\n\n\n\n

Take LendingTree, for example, one of the most well-known comparison sites and a pioneer in this industry. Their business model allows consumers to receive multiple quotes from lenders, helping them find the best option. You\u2019ve probably heard their slogan: \u201cWhen banks compete, you win!\u201d A consumer would fill out a form that referenced potential lenders, give prior express written consent, and their information would be shared with up to four lenders who would contact them. However, under the new rules, this model was no longer acceptable because the consumer lacked control over which specific lenders contacted them. The FCC\u2019s new TCPA rules required consumers to give consent individually to each \u201cseller\u201d (in this case, each lender). Imagine having to change a business model that\u2019s been in place for 20 years and doing it within just 12 months!<\/p>\n\n\n\n

The FCC\u2019s Good Intentions<\/h3>\n\n\n\n

Why did the FCC propose this change? Their intentions were valid – they want to reduce unsolicited calls and provide consumers with more control over how they give consent to be contacted. While the FCC specifically references going after \u201crobocalls\u201d, I don\u2019t think most consumers really care what technology is used to contact them. People just don\u2019t like unwanted calls. They describe the issue they are trying to address as the \u201clead generation loophole.\u201d The practice involves consumers giving consent on web forms that references a hyperlink to a marketing partner list, often containing thousands of companies. The FCC considers it inappropriate for consumers to give blanket consent to so many companies at once, as it often leads to abuse. The FTC even referred to such websites as \u201cconsent farms,\u201d sites that mislead consumers into giving consent to numerous companies simultaneously.<\/p>\n\n\n\n

The FCC\u2019s concerns were justified. Many websites have abused consumer trust. But would this rule have stopped the barrage of robocalls we all receive? Likely not, as most robocalls originate from overseas companies and scammers who disregard U.S. laws or from companies who are the victims of forms submitted by bots or fraudsters. Would it have improved the experience for consumers using comparison websites? Yes, by giving consumers more control over who contacts them. I fully support the spirit of the new 1-to-1 consent rule. As a consumer, don\u2019t you want more control over who gets your data and who calls you?<\/p>\n\n\n\n

The Problems with the New Rules<\/h3>\n\n\n\n

The issues with the new rules were twofold:<\/p>\n\n\n\n

    \n
  1. They were ambiguous and left much open to interpretation. I won\u2019t go into detail here as there are plenty of articles about the new rules highlighting questions and concerns.<\/li>\n\n\n\n
  2. The TCPA includes a private right of action provision, which fuels a cottage industry of TCPA plaintiffs\u2019 attorneys who make a living suing companies for even minor mistakes. With penalties reaching up to $1,500 per call or text, this creates massive legal risks for companies.<\/li>\n<\/ol>\n\n\n\n

    This combination of ambiguity and legal liability meant that the rules would inevitably be clarified in court, at great expense to responsible U.S.-based companies, while benefiting plaintiffs\u2019 attorneys seeking quick settlements. For perspective, my company, ActiveProspect, hosted over 20 webinars<\/a> last year with industry experts to discuss the implications of the new rules. All were well-attended, reflecting the industry\u2019s confusion and concern.<\/p>\n\n\n\n

    These rules introduced significant new legal risks for any companies who contact consumers on their mobile phones by phone or text. Meanwhile, overseas scammers who are the primary source of unsolicited robocalls would remain unaffected, as they operate outside U.S. jurisdiction. Since TCPA attorneys can\u2019t target these overseas entities, they instead focus on U.S. companies, many of which are unaware of the massive legal liability they face when contacting consumers on their mobile phones.<\/p>\n\n\n\n

    The Industry\u2019s Response: Adaptation and Innovation<\/h3>\n\n\n\n

    Faced with these risks, the industry adapted quickly. Many companies, including ActiveProspect, contributed ideas on how to comply with the new rules. In December 2023, we published content explaining how the traditional \u201cPing Post\u201d lead distribution model would need to be replaced by a new methodology called \u201cPing Pick Post<\/a>.\u201d This approach added a step allowing consumers to select the specific company they wanted to contact them. While the terminology varied, this model was widely adopted across the industry.<\/p>\n\n\n\n

    I continue to be amazed by the online lead generation industry\u2019s ability to adapt and innovate under pressure. However, concerns lingered about the broader effects of the new rules. Would lead volumes drop? Would lead prices rise? Would smaller advertisers be able to compete when presented next to nationally recognized brands? While the rules never officially went into effect, anecdotal evidence suggests that lead volumes did decline, lead prices increased and lead-to-customer conversion rates improved. Most importantly, at least in some cases, customer acquisition costs decreased. This suggests the new model could benefit everyone: consumers receive fewer unwanted calls, publishers earn higher prices per lead, and advertisers achieve lower acquisition costs.<\/p>\n\n\n\n

    Was the industry fully prepared for Monday, January 27th? Not entirely. While most major lead vendors updated their models to comply, the majority of lead buyers had not implemented tools to verify whether they had the proper consent required under the new rules. From this perspective, it was fortunate the rules didn\u2019t go into effect as scheduled, as many companies would likely have faced costly lawsuits for non-compliance.<\/p>\n\n\n\n

    The Best Possible Outcome?<\/h3>\n\n\n\n

    Upon reflection, I believe this outcome was likely the best-case scenario. The industry was forced to make consumer-friendly changes to comply with the new rules but ultimately avoided the additional legal risks these regulations would have introduced.<\/p>\n\n\n\n

    Regulations are sometimes necessary to push industries to adopt consumer-friendly practices and maintain a level playing field. Companies are often pressured to prioritize profitability over what\u2019s best for consumers. I\u2019ve had countless conversations with lead generation companies suggesting more compliant, consumer-friendly changes that can\u2019t be enacted because the changes might reduce conversion rates or make them less competitive in the marketplace.<\/p>\n\n\n\n

    Well-written regulations can drive positive change and create an even playing field, but only if they are simple, clear, and easy to follow. Wouldn\u2019t that be nice?<\/p>\n\n\n\n

    The question now is whether the industry will build on this progress or revert to old practices? The reality is that all of the factors that pushed the FCC to enact this rule are still present today. The FCC still wants to close the lead generator loophole, the FTC still wants to shut down consent farms and state AGs are still actively pursuing firms that mislead consumers. Regardless of the regulations, we have to address these issues. I hope we move forward with the 1-to-1 consent model as a best practice. Ultimately it will be up to the lead buyers to push for it and pay more for it. By adopting consumer-friendly approaches, we can improve the customer experience, enhance engagement, and avoid being regulatory targets.<\/p>\n\n\n\n

    Call to Action<\/h3>\n\n\n\n

    I believe in the principle of \u201cdoing well by doing good.\u201d In this context it means prioritizing the consumer\u2019s experience and needs. If we treat consumers well, we all benefit. Conversely, if we abuse consumer trust, we harm the industry as a whole. I\u2019m reminded of this every time I hear someone say, \u201cI\u2019m never filling out a lead gen form again!\u201d after a poor experience. The 1-to-1 consent model is simply a better model for consumers.<\/p>\n\n\n\n

    Let\u2019s not waste the industry\u2019s collective efforts over the past year. Instead, let\u2019s strive for best practices that ensure a positive experience for consumers while fostering a sustainable and compliant future for the lead generation industry. We need to move on from \u201cgenerating leads\u201d to a true consent-based model where marketers only call\/text consumers who have requested it. A model where consumers happily answer your call\/text because they are expecting it. Lead buyers, please push for 1-to-1 consent for your leads and pay the higher price for higher quality. It will benefit you, consumers, and the industry as a whole.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The online lead generation industry collectively breathed a sigh of relief on Friday, January 24th, after the FCC\u2019s new 1-to-1 Consent Rule for the TCPA was vacated by a successful petition from the Insurance Marketing…<\/p>\n","protected":false},"author":5,"featured_media":9114,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[111],"tags":[31,25,28],"ap-post-type":[],"ap-post-industry":[],"ap-post-product":[],"ap-post-topic":[315,317,313],"class_list":["post-10081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","tag-compliance","tag-fcc","tag-tcpa"],"acf":[],"_links":{"self":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts\/10081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/comments?post=10081"}],"version-history":[{"count":0,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/posts\/10081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/media\/9114"}],"wp:attachment":[{"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/media?parent=10081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/categories?post=10081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/tags?post=10081"},{"taxonomy":"ap-post-type","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-type?post=10081"},{"taxonomy":"ap-post-industry","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-industry?post=10081"},{"taxonomy":"ap-post-product","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-product?post=10081"},{"taxonomy":"ap-post-topic","embeddable":true,"href":"https:\/\/activeprospect.com\/wp-json\/wp\/v2\/ap-post-topic?post=10081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}