FCC Consent Changes in the USA - 6 Months On

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.