Federal Communications Commission regulations
The new Federal Communications Commission regulations on lead generation will lead to changes in the insurance lead market. As of January 27th 2025, organizations must get “one-to-one” consent before contacting consumers. In other words, people buying leads must get explicit, individual consent before contacting the lead. The goal of this rule is to eliminate the sale of mass market leads to multiple agents.
Previous to the new rule clarification, the TCPA did not address the use of lead generation. The new rule focuses on the lead buyer and puts the emphasis on their need to obtain one to one consent when buying leads. It also states that leads must be related to the services the consumer showed an interest in. In other words, when a consumer goes online to get an auto quote, a agent cannot contact them about Medicare plans, credit cards, mortgages, etc. This also means, lead companies cannot sell consumer information to multiple buyers. This is a common practice with shared online leads.
Click here for proposed rule FCC document
What type of leads will the new rules apply to?
The new Federal Communications Commission regulations “one-to-one” consent and “related services” rule will make many of the leads insurance agents purchase today non compliant next January. The main types of leads this will be applicable to are:
- Shared online leads: lead companies sell shared leads to multiple agents and do not meet the “one-to-one” consent rule
- Aged leads of any type: because lead companies resell aged leads to other agents, they are not compliant
- Live transfer phone leads: It will be difficult to maintain one to one consent with live transfer leads. The marketer on the phone talks to the prospect and then transfers them over to the agent which will no longer be allowed
- Any lead that originated from a different advertisement: Many insurance leads did not originate that way. The consumer may be interested in another product, but their information was sold as an insurance lead.
Which type of leads will be allowed after the new Federal Communications Commission regulations?
Most of the lead types insurance agents use today will still be allowed. If the lead creation source sends the consumer directly to the purchasing agent, they will be allowed. This would include direct mail, exclusive online leads, consumer direct inbound call leads and social media advertising such as Facebook or Google ads.
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What does this mean for insurance agents and agencies buying leads?
Does this mean lead vendors will stop selling shared leads to insurance agents? Unfortunately not. The enforcement of the new rule focuses on the those who purchase them. Those selling the leads will likely continue to offer them after January 27th of 2025. This may lead to a scenario with agents continuing to purchase leads that do not have “one-to-one” consumer consent. Agents that continue to purchase leads without one-to-one consumer consent will be exposing themselves to demand letters and litigation from consumers and law firms.
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