FCC Ruling on Lead Generation Suddenly Postponed: What You Need to Know

Smartphone and gavel, representative of the FCC ruling on internet leads

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Your Guide for TCPA Compliance for Internet Leads

If you are involved in lead generation, you have probably heard about the Federal Communications Commission (FCC)’s 2023 “one-to-one consent” ruling under the Telephone Consumer Protection Act (TCPA).

The FCC’s amendments to the TCPA were set to change the landscape of lead generation drastically by outlining new requirements for one-to-one consent and logical and topical restrictions for telemarketing and advertising calls.

Originally, the amendments to the TCPA were set to go into effect on January 27th, 2025. However, as of January 24th, 2025, the 11th Circuit Court has vacated the FCC ruling, meaning that it will not go into effect as planned.

In this guide, you’ll learn what the FCC ruling entailed, details about its delay, and how to maintain compliance with current legal guidelines regarding consent under the TCPA.

 

The FCC ruling for lead generation

At the heart of the 2023 FCC ruling is what we call “one-to-one” consent. 

Under their 2023 amendments to the TCPA, prior express written consent must be obtained from consumers for one specific seller at a time.

These rules were intended to close the “lead generation loophole”, referring to how lead generators can sell contacts to a significant number of companies or partners after the customer filled out a single consent form.

This most often happens on comparison shopping websites, where consumers fill out one form to learn more about a product or service, and from there, are contacted by a large number of companies about their offers.

Sometimes, the offers have nothing to do with the information the consumer initially requested when filling out that one consent form.

This is why the ruling also specifies that the content of telemarketing must be logically and topically associated with the consumer’s original consent.

How the FCC ruling affects companies and lead generators

You cannot leverage technology to call or text a lead unless the person you are reaching out to has given explicit, express prior written consent to receive communications from your business specifically.

Additionally, a consumer can only give consent to receiving robocalls or robotexts directly or topically related to the website they gave their consent on. 

For example, if a consumer consents to receive information on a comparison website for car loans, they should not then be contacted about services like loan consolidation, which are not related to their initial interest.

Practically, this all means that under the ruling, lead generators (especially comparison shopping websites) would be prohibited from using one consumer consent form to share contact information amongst a long list of partner companies.

Why the FCC ruling was put into place

As third-party data strategies have become widespread, customer contact data is being commoditized, which is upsetting to both consumers and the FCC. 

The surge of unwanted texts and phone calls has become a growing concern for consumers. 

Unwanted communications, often due to the lead generation loophole, have become a source of annoyance for consumers.

The ruling was adopted to crack down on intrusive telemarketing, including robocalls and texts. It was intended to combat the sale of customer data to a myriad of partners, using a legal loophole of fine print policies that customers often do not read nor understand.

Current status of the FCC ruling

Days before the ruling was supposed to take effect, it was delayed for an undetermined period of time due to an Eleventh Circuit Court decision that the FCC exceeded its statutory authority under the TCPA.

As a result, the FCC’s 2023 order on one-to-one consent is nullified and no longer in effect.

Meanwhile, the previous requirements for prior express written consent under the TCPA remain in effect.

Legal reasons why the FCC ruling has been postponed

The ruling has been postponed because the Insurance Marketing Coalition (IMC) petitioned to challenge FCC’s ruling to the Eleventh Circuit Court.

The IMC based its challenge on the claim that the FCC exceeded the bounds of its authority under the TCPA. 

The Court ultimately agreed that the FCC was overstepping by imposing additional restrictions that conflict with the meaning of “prior express consent.”

Long story short: according to the Court, the FCC is allowed to implement the TCPA, but altering the TCPA is not part of implementation. 

Under the TCPA, telemarketing calls (including robocalls and texts) are permitted when the consumer has provided express written consent. 

The TCPA simply states that express consent is “clearly and unmistakably granted by actions or words, oral or written…” and given before the robocalls or texts are made. 

Likewise, under case law, as long as the consumer has given express consent, they are willing to receive telemarketing communications—regardless of their logical or topical relation.

Though the FCC can define and implement express written consent, the Court decided that the FCC cannot add requirements to the rule.

What this means for the FCC ruling moving forward

As of now, the court has vacated the ruling, which included the requirement for one-to-one consent and logical and topical restrictions for telemarketing and advertising calls. 

This means that the ruling is longer in effect. However, this doesn’t stop the FCC from being able to revise their provisions and submit to the Court for new approval.

The court remanded the ruling, allowing the FCC to revisit and revise these provisions, provided they address the court’s concerns and remain within their statutory authority. 

After revision by the FCC, the Court will revisit the issue and decide if the revisions will go into effect.

The FCC may initiate a new rulemaking process to modify and reintroduce similar restrictions, including public comment and a new effective date.

If the FCC complies with the court’s interpretation, we could see a revised version of these rules potentially as early as January 2026.

However, any revised ruling by the FCC will likely still face legal challenges, which could delay or block implementation.

Though the FCC ruling did not go into effect as planned, the delay gives lead generators some room to breathe as well as prepare for any possible revisions.

Maintaining FCC and TCPA compliance

In preparation for any further rulings by the FCC, it’s critical that companies maintain compliance with existing compliance laws.

While the Eleventh Circuit Court vacated the FCC’s ruling, the legal guidelines of the TCPA remain in place. 

Under federal law, the TCPA regulates telemarketing calls and text messages. It prohibits the use of technology in telemarketing without the consumer’s prior express written consent.

TCPA compliance

The Telephone Consumer Protection Act (TCPA) revised in 2012:

  • Requires prior express written consent for all autodialed or prerecorded telemarketing calls to wireless numbers and residential lines.
  • Requires businesses to obtain written consent before sending text messages and clearly disclose that the recipient will receive future text messages.
  • Requires that companies provide a clear way to opt-out in their initial message and subsequently every 30 days.

Here are some of the basics of TCPA compliance:

  • Use compliant opt-in forms
  • Collect prior express written consent before calling or texting consumers
  • Provide clear and functional opt-outs
  • Protect consumer data
 

Note that this is not legal advice. For companies and lead generators, it’s imperative to stay fully educated about compliance not only with the TCPA and FCC, but with all other legal guidelines.

Compliance is an ongoing effort that requires diligence and attention.

State-specific TCPA compliance

In the United States, individual states can have their own telemarketing and consent laws. 

Companies should be fully aware of individual state TCPA laws in any states that they operate in, and remain compliant with those state-specific laws and regulations.

If you need more information about state-specific compliance, check out our state-by-state guide here.

Lawsuits over the FCC ruling

For companies, it’s crucial as ever to maintain compliant consent forms that align with the 2012 TCPA.

Though the FCC’s one-to-one consent ruling is not in effect at this time, plaintiff attorneys are actively filing lawsuits. The main targets of these lawsuits are companies that lack compliant consent form disclosures.

To avoid legal trouble, ensure consent forms meet TCPA requirements.

Delivering value and compliance

Though the FCC ruling did not go into effect as planned, the reasons behind the proposed ruling remain: consumers do not want to receive communications that do not deliver value.

Many consumers are tired of receiving robotic calls and texts that are not helpful or even irrelevant to them. This is one aspect of the customer experience that desperately needs improvement.

However, for many companies, it can be a constant struggle to create communications that are compliant, sound natural, and deliver value with every interaction.

At Verse, we focus on compliant, human-sounding communications that add value and remove frustration from the customer experience—helping you convert more customers.

We also understand the complexities of compliance and expertly assist our clients with compliance. 

Level up your customer experience with Verse—learn more.

Key takeaways: FCC ruling, its delays, and TCPA compliance

The FCC ruling and TCPA compliance: key takeaways

Actionable steps for businesses

  • To remain compliant, businesses should:
    • Use clear, TCPA-compliant consent forms.
    • Collect express written consent before contacting leads.
    • Provide straightforward opt-out mechanisms.
    • Protect consumer data and maintain diligent compliance practices.
  • Stay updated and educated: Legal developments around telemarketing regulations are ongoing. Staying updated and consulting legal experts as needed will help mitigate risks and ensure compliance.
 

FAQ: Understanding the FCC ruling, updates, and TCPA compliance

What is the FCC’s one-to-one consent ruling?

The FCC’s 2023 ruling required businesses to obtain prior express written consent from consumers for a specific seller before making telemarketing calls or sending texts. It also required telemarketing communications to be logically and topically related to the consumer’s original consent.

Why was the ruling introduced?

The ruling aimed to address consumer frustration with intrusive telemarketing practices and close the “lead generation loophole.” This loophole allowed lead generators to sell consumer data to multiple companies based on a single consent form, leading to unwanted and irrelevant calls or texts.

Is the FCC ruling currently in effect?

No. Days before the ruling was set to take effect on January 27, 2025, the Eleventh Circuit Court vacated it. The court determined that the FCC overstepped its authority under the TCPA by imposing additional restrictions.

How does the vacated ruling impact lead generators?

For now, lead generators are not bound by the one-to-one consent and topical restrictions outlined in the vacated FCC ruling. However, they must still comply with existing TCPA regulations, including obtaining clear and written consent for telemarketing.

Will the FCC reintroduce the ruling?

The court remanded the ruling to the FCC, allowing it to revise and potentially reintroduce similar provisions within the bounds of its statutory authority. Any new revisions could face additional legal challenges, potentially delaying implementation.

What steps should businesses take for TCPA compliance?

Businesses should:

  • Use clear and TCPA-compliant consent forms.
  • Obtain express written consent before contacting leads.
  • Provide consumers with easy opt-out mechanisms.
  • Stay informed about both federal and state-specific telemarketing regulations.

What risks do businesses face if they are not compliant?

Non-compliance can result in lawsuits, significant fines, and damage to reputation. Businesses should prioritize compliance with TCPA regulations and closely monitor any updates to telemarketing laws.

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