In the coming weeks the FCC is set to finalize a new ruling on TCPA, that will greatly affect lead generation companies, lead buyers and consumers nationwide. This includes insurance agents and agencies who rely on purchased leads to connect with prospective consumers. The ruling set to be finalized on Dec 13, 2023, will change the way that the TCPA defines express consent. The rule change will drastically change the way business and individuals access lead information, and the way lead generation companies operate. With so much to dig into, we’ll back taking a look at the main details of the situation, some key takeaways, and a solution that’s already in place.
What Will the Ruling Actually Do?
The new ruling will redefine express written consent as an agreement “that authorizes no more than one identified seller,” when regulated technology is being used. The way they define a seller is as a company that provides goods or services to consumers. This is important to take note of, since the definition is meant to exclude lead sellers.
The ruling also states that calls have to be “logically and topically associated with the interaction that prompted the consent.” This part of the legislation can be interpreted in a variety of ways so there will likely be some litigation in coming weeks surrounding it.
How Will it Affect Lead Generation?
The ruling is expected to have a major impact on both businesses in the lead generation space, and lead buyers in a variety of ways. When the ruling is enacted, a variety of common lead generation methods will in turn be made illegal. This includes:
- Ping Post Leads
- Co-Reg Leads
- Aged Leads
- Sweepstake Site Leads
- Multi-Vertical Leads
For publishers, lead aggregators, and affiliate marketing companies, the ruling means they will now have to gain a consumer’s consent for a single company at a time. This will also greatly impact call centers who oftentimes rely on massive amounts of purchased consumer data. Simply put, the change is going to force many companies to restructure the way they do business and will potentially cause some to exit the industry entirely.
How will it Affect Lead Buyers?
Short Term: The way lead buyers advertise, reach out to consumers and nurture leads will have to change in many ways. For example, there will be no more robo dialing allowed. Additionally, lead aggregators are going to start disappearing. This will force lead buyers to look elsewhere for qualified leads.
Long Term: The good news is that in the long-run contact rates will go up for lead buyers. While it will take some time for this to actually happen, eventually, lead buyers will reap the benefits of more consumers who actually expect their calls, and in turn pick up the phone.
What’s the Solution?
The solution for lead buyers is to work with a partner who is generating their own leads instead of lead aggregators. At Benepath, the technology we have set in place allows us to gain consent prior to a data form being filled out. This means when a consumer fills out our form, at the start of the process they will see the single agent that they are being paired with, who will be contacting them. We’ve worked for over 15 years to establish ourselves as a trusted lead generation company, specializing in insurance. The way we’ve been able to separate ourselves in such a competitive industry is due to this unique process and our commitment to leads that are sold 100% exclusively.
With this ruling on the horizon, you may be concerned and wondering how you’ll be able to purchase leads moving forward. A lot of companies are at risk of shutting down, but luckily, even with the FCC’s rule changes, our exclusive lead generation system at Benepath ensures consent between one agent and one consumer, before the form is even completed. This means you’ll still be able to work with us for all of your insurance lead needs, while also remaining compliant with the future regulations. The unique process that we’ve developed can work to your advantage during this time of uncertainty. To speak to one of our agents about what our insurance lead generation service can do for you, just fill out a form, or call 888-684-3121.
Who is the FCC and What is TCPA?
Established in the Communications Act of 1934, the Federal Communications Commission (FCC) was made to regulate interstate communication in the United States. Forms of communication include wire, radio, cable, television and satellite. They’re goal upon creation was to provide Americans with a stable and robust communications infrastructure.
The Telephone Consumer Protection Act (TCPA) is a federal law created in 1991. Its purpose is to regulate telemarketing calls, auto-dialing systems, pre-recorded voice, and robocalls. What’s important to understand is that according to the TCPA, calls made to cellular phones are illegal with express written consent. This is important because the new way that “express written consent” will be defined is why we’re in this unfortunate situation to begin with.
When Will the Ruling Be in Effect?
As mentioned, the ruling will very likely be finalized by the FCC on December 13, 2023. Once that happens it will need to be reviewed and published in the federal registrar around January or February 2024. Then, six months from the publication date, it will become effective. When it’s all said and done, we’re likely looking at somewhere between July and October of 2024.
