TCPA and DNC Practical Compliance Guide for Businesses
Navigating the FCC's New Lead Generation Loophole Closure Rules
The team at Pitchit would like to give a special thank you to our legal partners, Rikka Law, who helped us research and prepare this guide on behalf of our customers, partners, investors and vendors in the ecosystem. Staying compliant is very challenging, and providing this information in such an organized manner would not have been possible without their dedication to our cause.
Preface
This guide (Guide) provides practical steps and compliance strategies for businesses to navigate the Federal Communications Commission’s (FCC) new rules to mitigate unlawful text messages and robocalls effectively. The FCC’s Second Report and Order, released on December 18, 2023 (Order) promulgates new rules (Rules) that will and have substantially changed the compliance requirements under the Telephone Consumer Protection Act (TCPA), in particular for those companies in the lead generation or qualification industry.
This Guide will focus specifically on the Lead Generator Rule (described below) which is expected to have a massive impact on the ability of companies to depend on traditional lead generation tactics. From obtaining proper consent to managing third-party leads and ensuring robust record-keeping, this Guide offers a blueprint for businesses to minimize risk and stay compliant with the FCC's Rules.
Note that this Guide is for informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of this information, businesses should consult with qualified legal counsel to address specific compliance requirements under the Order, TCPA regulations, and related laws. Legal obligations may vary based on jurisdiction, business practices, and evolving interpretations of the law. This Guide is provided as-is, where-is, with all faults.
Introduction
The FCC has taken significant steps to address the growing issue of unwanted and unlawful text messages. In its Order, the FCC strengthened the enforcement of consumer protections under the TCPA. While the Order was released in late 2023 and while some Rules are already in effect, other key compliance deadlines are fast approaching in early 2025. The rule closing the lead generator loophole (Lead Generator Rule) becomes effective on January 27, 2025, giving businesses and their attorneys limited time to prepare if they haven’t already. Companies must ensure they are ready to meet these updated requirements, implement compliance safeguards, and adjust their practices to avoid substantial legal and financial penalties. Violations of the TCPA can result in fines of up to $1,500 per unlawful call or text, and businesses may face class-action lawsuits that could lead to settlements or judgments in the millions of dollars. Additionally, noncompliance can result in reputational harm and increased scrutiny from regulators.
These regulatory updates reflect the FCC's ongoing effort to protect consumers from unwanted communications while holding businesses accountable for their outreach practices. Moreover, they signal the FCC's increasing focus on new challenges in telemarketing, such as artificial intelligence (AI) in robocalls and digital marketing. The FCC has also initiated discussions around a potential Notice of Proposed Rulemaking (NPRM) around the AI-generated calls and how to protect consumers from unwanted and illegal AI robocalls. Furthermore, in February 2024, the FCC issued a declaratory ruling that confirms that AI technologies that generate synthetic human voices constitute an “artificial or prerecorded voice” and are restricted by the TCPA.
Why should this matter to you? If your company is involved in making outbound calls or texts in any way, the TCPA should already be on your radar given its violation carries significant potential penalties and liability. Specifically, numerous federal government agencies (including the FCC) can enforce violations of the TCPA and it is often used by class action attorneys to force companies to agree to significant settlements. Therefore, companies must ensure they are ready to meet these updated requirements, implement compliance safeguards, and adjust their practices to mitigate risk of substantial legal and financial penalties.
Summary of the New Rules
The key provisions of the Order promulgating the new Rules include:
Mobile carriers are now obligated to block text messages originating from numbers flagged by the FCC as sources of illegal or fraudulent activity. Carriers must respond promptly to FCC notifications to prevent these messages from reaching consumers. This rule became effective March 26, 2024; however, the FCC has adopted a 12-month limited waiver to allow mobile wireless providers to access the Reassigned Numbers Database (RND) to verify if flagged numbers have been permanently disconnected, ensuring lawful messages are not blocked in error.
The FCC clarified that the DNC Registry protections apply to text messages. Businesses must screen all numbers against the National DNC Registry before sending marketing texts, just as they would for calls. This rule became effective March 26, 2024, and business are required to ensure compliance processes are in place already.
The FCC now requires lead generation websites to obtain specific, one-to-one consent for each seller wishing to contact a consumer. Businesses can no longer rely on ambiguous blanket consents that allow multiple sellers to inundate consumers with calls or texts. Consent must be explicit, detailed, and tied to a single seller. This rule becomes effective January 27, 2025, giving businesses a clear deadline to review, audit, and adjust their lead generation and consent processes to ensure full compliance.
To combat fraudulent texts originating from email addresses, the FCC encourages mobile providers to make email-to-text services opt-in only. This approach adds a critical layer of protection for consumers against spam and scams.
To avoid wrongful blocking of lawful text messages, mobile providers may use the Reassigned Numbers Database (RND) to verify if a flagged number has been reassigned to a new subscriber. This ensures legitimate businesses are not penalized for contacting reassigned numbers.
What Is the One-to-One Consent Rule and What Does the Lead Generator Rule Require?
The Order closes what has been known as the “lead generation loophole”. The FCC stated that the Rules make it “unequivocally clear” that texters and callers must obtain a consumer’s prior written consent to robocall or robotext a consumer soliciting their business and that this consent must be secured for a single seller at a time. Previously, the lead generator loophole allowed comparison shopping websites and other lead generation sites to get consumer consent and apply it to multiple sellers which led to consumers being bombarded with unwanted calls and texts. As noted above, the Rules require specific, one-to-one consent although the Rules do not specify how many sellers a company can list in its consent. Effectively, what this means is that companies must update its disclosures to consumers and be much more granular about the specific sellers a consumer is consenting to allow contact them.
Further the Rules amend the definition of “prior express written consent” under the TCPA. To get prior express written consent as defined by the Rules, a company must:
- Get a consumer’s consent in writing;
- Get it signed (e-signatures permissible);
- Clearly and conspicuously authorize no more than one identified seller to deliver or cause to be delivered the advertisements or telemarketing messages using an automatic telephone dialing system or using an artificial or prerecorded voice;
- Ensure calls to the consumer are “logically and topically” associated with the interaction that prompted the consent;
- The consent must identify the telephone number to which the signatory authorizes the advertisements or telemarketing messages to be delivered;
- Not sell or transfer the consumer’s consent to a third party;
- Retain the burden of proof that it has obtained the legally required consent.
Note that the FCC states that the Rules are not intended to restrain comparison shopping or a business’ ability to rely on leads purchased from lead generators. The FCC provides an example that consumers can request that businesses contact them through means other than robocalling, robotexting or using prerecorded or artificial voice messages, in which case, the Rules wouldn’t apply.
Bottom line: The FCC states that in order to comply with the Lead Generator Rule, companies may offer a checkbox list that permits the consumers to choose each seller they wish to contact them to solicit business. Comparison shopping sites can allow the consumer to reach out to each seller directly and provide consent to each seller individually.
Prior Express Written Consent Terms
Under the TCPA, express written consent does not typically expire
Once a consumer or business opts in to receive calls/texts, businesses may contact them until they opt out or revoke their consent. However, state laws can differ, and a growing number of states have "mini TCPA" laws and/or consumer privacy laws that may be more restrictive than the federal TCPA.
To verify whether or not prior express written consent has been properly captured, review the following summary:
Before using any leads for outreach, businesses must confirm that prior express written consent was obtained in compliance with TCPA requirements. Key verification steps include:
- Proof of Consent: Require lead providers to document when, how, and where the consumer provided consent. However, as noted above, the Rules make it clear that the burden of proof remains with the company that makes the text or call and cannot be shifted onto the lead generator or comparison shopping website.
- Seller-Specific Consent: Ensure consent explicitly names your business as the entity authorized to contact the consumer. General or blanket consent for multiple companies is not permissible.
- Consent Language: Review the exact language used to gather consent to ensure it meets legal standards.
- Contractual Protections: Consider requiring the lead provider to contractually indemnify your company if it has not secured prior express written consent in accordance with the Rules.
Cross-selling, reselling or upselling opportunities
Opportunities that would involve contacting consumers or businesses who previously provided express written consent and have not yet revoked consent are allowed under the new Rules with a few stipulations.
In certain respects, it's where the FCC's December 2023 2nd R&O / 2nd FNPRM really comes into play.
Under the new Rules — in particular, the one-to-one consent rule — the FCC made clear that, effective, January 27, 2025, all calls/texts using regulated technology must comply with the new definition of "prior express written consent," effectively expiring all non-compliant consents on that date. In other words, you can still manually call or use human-assisted dialing to contact old leads after January 27, 2025. However, regulated technologies like prerecorded messages, AI voices, soundboards, automated systems, etc., will no longer be allowed, absent having first obtained consumer consent that meets the new "prior express written consent" standard.
The FCC also incorporated into this "prior express written consent" standard the requirement that such calls and texts must be "logically and topically associated" with the interaction that prompted the consent, e.g., "related to the content of the website on which consent is obtained." This element reinforces that businesses must ensure that the scope of consent aligns with the consumer's reasonable expectations, avoiding any unrelated or overly broad marketing communications.
In other words, it is not logical or topically associated to sell pizza to a consumer who provided prior express written consent for internet services. You may, however, be able to make a case that home internet services are topically associated with home security and consumer phone services, especially for a homeowner who has recently changed addresses and would likely be in need of these topically-related services.
Programmable Messaging and A2P 10DLC Registration
The A2P (Application-to-Person) 10DLC (10 digit long code) registration process was created in 2021 to eradicate SMS-based spam and phishing attacks. Every business planning to programmatically send SMS to a USA-based phone number is required to deal with these regulations.
Opportunities that would involve contacting consumers or businesses who previously provided express written consent and have not yet revoked consent are allowed under the new Rules with a few stipulations.
The following steps outline how your business can comply with this regulation:
Your business must identify itself to the carrier networks by providing the following information:
- Legal business name
- Business type
- EIN / Tax ID
- Industry
- Website URL
- Region of operation
- Business address
- Contact information
Once you've identified your brand, then your business must provide samples of the message templates you'll be using in your campaign(s) and identify which type of messaging you'll be using in order to get the campaigns pre-approved.
Think of this as your "use case" and remember that each use case requires a different campaign to be registered.
Note: you can have multiple campaigns under one brand, and don't need to re-register your brand for each campaign.
If your business intends to use phone numbers that have local area codes (aka 10DLC) in your programmatic messaging, then you must comply with the A2P 10DLC registration regulations listed above.
If your business does not need phone numbers that have local area codes (aka 10DLC) in your programmatic messaging, then you do not need to complete as rigorous of a process as A2P 10DLC registration.
You do, however, need to complete a simpler process known as Toll-Free verification, which should improve your deliverability towards all major networks in the USA and Canada.
In order to receive Toll Free verification, you must supply this information:
- Legal business name
- Physical addresss
- Website URL
- Contact information
- Proof of prior express written consent
- Description of your campaign use case
- Sample messaging copy
Although the type of information you must provide for Toll Free verification is similar to the information you must provide for A2P 10DLC registration, the process of approvals for Toll Free verification is significantly shorter and has fewer fees.
Website Form Fill Compliance
Businesses collecting consumer information via website forms must ensure prior express written consent is obtained clearly and transparently. Missteps in this area can expose companies to legal liability and regulatory enforcement. The following steps outline best practices:
Use an unchecked checkbox with clear, specific language to ensure consumers actively consent to receiving calls or texts from specific businesses. Pre-checked checkboxes and generic language permitting “all marketing companies” to contact the consumer are not permitted.
View the Pitchit home page for an example of acceptable opt-in language.
- Clearly and conspicuously identify each business that the consumer is consenting to contact the consumer.
- Specify the method of communication (calls, texts, or both).
- State the purpose of the outreach (e.g., marketing or informational messages).
- Maintain timestamped records of when and how consent was obtained.
- Archive the exact language displayed to consumers at the time of consent.
- Implement a data storage system to quickly retrieve records in case of disputes.
Clearly provide instructions on how consumers can revoke consent. Ensure opt-out requests are honored promptly.
Inbound Call Compliance and Required Disclosures
Businesses receiving inbound calls must follow clear compliance procedures to ensure transparency and meet the FCC’s updated TCPA Rules. Missteps in this area can result in penalties and legal liability. The following steps outline key requirements and best practices for inbound call compliance:
At the beginning of every inbound call, agents must provide clear and concise information to ensure transparency and compliance:
- Agent and Business Identification: Clearly state the agent’s name and the company they represent.
- Purpose of the Call: Explain why the call is being conducted, such as for informational, marketing, or customer service purposes.
Before proceeding with any conversation that involves follow-up calls, marketing, or text messages, agents must confirm that prior express written consent has been obtained. If there is no documented consent, agents must refrain from further outreach for marketing purposes.
Steps for Verifying Consent:
- Confirm the consumer provided prior written authorization for calls or texts using an automatic telephone dialing system or using an artificial or prerecorded voice.
- Secure express prior written consent as defined above.
- If the consumer did not consent, politely conclude the call and do not collect or use their information for making robocalls or robotexts.
Agents must inform consumers of their right to opt out of future calls or text communications. Opt-out requests must be honored immediately and documented in your internal systems.
Steps for Opt-Out Compliance:
- Clearly offer the opt-out option during the call.
- Log the request promptly and ensure suppression across all outreach systems.
Accurate record-keeping is essential for demonstrating compliance with TCPA rules. Businesses should maintain the following records for each call:
- Date and Time of the Call: Document when the interaction occurred.
- Consent Verification: Record confirmation that consent was obtained.
- Opt-Out Requests: Track and suppress numbers where consumers opted out.
- Agent Notes: Include any relevant call outcomes or clarifications.
These records must be updated regularly and stored securely to ensure compliance and serve as evidence in the event of disputes.
Buying Leads from Third-Party Affiliates
Businesses purchasing leads from third-party affiliates must take extra care to ensure compliance with the Telephone Consumer Protection Act (TCPA) and the FCC’s updated rules. The responsibility for compliance ultimately lies with the business making the calls or texts, not the lead provider. Failure to validate consent obtained by affiliates can result in substantial penalties.
The following steps outline best practices:
Before using any leads for outreach, businesses must confirm that prior express written consent was obtained in compliance with TCPA requirements. Key verification steps include:
- Proof of Consent: Require lead providers to document when, how, and where the consumer provided consent. However, as noted above, the Rules make it clear that the burden of proof remains with the company that makes the text or call and cannot be shifted onto the lead generator or comparison shopping website.
- Seller-Specific Consent: Ensure consent explicitly names your business as the entity authorized to contact the consumer. General or blanket consent for multiple companies is not permissible.
- Consent Language: Review the exact language used to gather consent to ensure it meets legal standards.
- Contractual Protections: Consider requiring the lead provider to contractually indemnify your company if it has not secured prior express written consent in accordance with the Rules.
Regular audits of lead generation practices are essential to ensure third-party affiliates follow TCPA rules and FCC guidelines:
- Evaluate Collection Methods: Confirm leads were collected transparently with clear disclosures.
- Check for Ambiguity: Ensure consent was obtained through affirmative action (e.g., unchecked checkboxes) and not implied through inactivity or simply using the service or browsing the website.
- Audit Frequency: Conduct routine audits to ensure ongoing compliance, especially as affiliates update their forms or processes.
Businesses must establish clear, enforceable agreements with lead providers to protect against TCPA violations. Key provisions to include:
- Compliance with TCPA Rules: Require agents, contractors, and other representatives that are acting on your company’s behalf to adhere to all TCPA and FCC requirements when collecting leads.
- Proof of Consent: Mandate that providers supply detailed records of consumer consent.
- Right to Audit: Include provisions allowing your business to audit lead generation funnels and consent records.
- Indemnification Clauses: Protect your business by requiring affiliates to indemnify you for any TCPA violations resulting from their practices.
Be cautious when evaluating leads from third-party affiliates. Red flags include:
- Vague or Blanket Consents: Leads where the consumer consented to contact from “partners” or a broad list of companies.
- Missing Documentation: Providers unwilling to share consent records or specific proof of compliance.
- Lead Volume Over Quality: Unusually high volumes of leads with minimal verification of consent.
Businesses must retain records of leads obtained from affiliates, including:
- Timestamped Consent: When and how the consumer provided prior express written consent.
- Consent Language: The specific language and disclosures shown to the consumer.
- Lead Provider Identification: Details about the lead provider and their processes for obtaining consent.
Compliance for Social Media Lead Ads and Direct Messages (DMs)
Social media lead ads, such as those on platforms like Facebook, Instagram, or LinkedIn, provide a powerful method for capturing consumer information. Similarly, social media direct messages (DMs) offer businesses a way to connect personally with consumers on platforms like Facebook Messenger, Instagram DMs, LinkedIn InMail, and others. There may be other laws and regulations that apply to how businesses can interact with consumers directly through social media lead ads and DMs; however, the Rules only apply to companies that are using information collected from DMs to make calls using an automatic dialer or with an artificial or prerecorded voice. If your company is using consumer information collected from DMs in such manner, then it must comply with the prior express written consent and other requirements described above.
Although communicating via DM or comment threads on social media is not directly covered under TCPA, each platform does have their own Terms of Use, which you must follow to avoid your account from being suspended.
The following steps outline best practices:
Direct message to recipients who direct message your business page:
- Only one direct message at a time can be sent to the recipient who DMs your business page
- All direct message replies must be sent within the 24-hour messaging window, at which time the opportunity to reply will expire
- Only when a recipient responds further to the direct message from your business page can you continue the conversation within a new 24-hour messaging window, at which time the opportunity to reply further will expire
Direct message to recipients who comment publicly on ads or posts from your business page:
- Only one direct message at a time can be sent to the recipient who commented
- The initial direct message must be sent within 7 days from when the post or comment was created
- Only when a recipient responds to the direct message can you continue the conversation within the 24-hour messaging window, at which time the opportunity to reply further will expire
Public comments to recipients who comment publicly on ads or posts from your business page:
- Only one comment at a time can be sent to the recipient who commented
- The initial comment reply must be sent within 7 days from when the post or comment was created
- Only when a recipient responds further to the comment from your business page can you continue the conversation within a new 24-hour messaging window, at which time the opportunity to reply further will expire
Business-initiated messaging on Whatsapp has several terms of use that you need to follow to be eligible to use this channel:
- Pre-approval of copy: All Whatsapp messaging that is used to start a new conversation with a recipient requires a Template SID, which can only be obtained by first sending your proposed language to Whatsapp for review
- Do not engage in fraud or spam: This includes repeated, unwanted contact, with WhatsApp users. Tips to keep your eligiblity when engaging in high volume Whatsapp messaging:
- Maintain explicit opt-in mechanisms
- Provide clear disclosures
- Record and retain consent
- Make clear the opt-out mechanisms
- Log all opt-out requests promptly and ensure immediate suppression from future contact
Lead ads are equivalent to form fills. Even though the lead was captured on a social media site, you must still follow TCPA form fill regulations in order to be compliant when contacting this consumer or business, which means prior express written consent must be captured.
Read the section of "Website Form Fill Compliance" for more details, but here is a quick summary:
- Explicit Opt-In Mechanisms: Use an unchecked checkbox with clear, specific language to ensure consumers actively consent to receiving calls or texts from specific businesses. Pre-checked checkboxes and generic language permitting “all marketing companies” to contact the consumer are not permitted.
- Opt Out Mechanisms: Clearly provide instructions on how consumers can revoke consent. Ensure opt-out requests are honored promptly
- Record and Retain Consent: Archive the exact language and store timestamped proof of prior express written consent
- Clear Disclosures: Identify each business that the consumer is consenting to contact the consumer, specify the method of communication, and state the purpose of the outreach
Compliance for Email
Email, such as those on platforms like Gmail and Outlook are some of the least regulated channels for communication, but they do have certain regulations (such as the FTC's CAN-SPAM Act) and terms of use that still need to be followed in order to keep your account in good compliance.
The following steps outline best practices:
- Email sent to Gmail users must adhere to all applicable laws and regulations governing email communications: for example, the CAN-SPAM Act.
- Keep reported spam rates below 0.3%: When you sign up for a Gmail account, you agree not to use the account to send spam, distribute viruses, or otherwise abuse the service. This includes repeated, unwanted contact. Tips to keep your eligibility when engaging in high volume Gmail messaging:
- Maintain explicit opt-in mechanisms
- Provide clear disclosures
- Record and retain consent
- Make clear the opt-out mechanisms
- Log all opt-out requests promptly and ensure immediate suppression from future contact
- Email sent to Outlook users must adhere to all applicable laws and regulations governing email communications: for example, the CAN-SPAM Act.
- Adhere to the Microsoft Anti-Spam Policy: view their policy for further details. This includes repeated, unwanted contact. Tips to keep your eligibility when engaging in high volume Gmail messaging:
- Maintain explicit opt-in mechanisms
- Provide clear disclosures
- Record and retain consent
- Make clear the opt-out mechanisms
- Log all opt-out requests promptly and ensure immediate suppression from future contact
To combat fraudulent texts originating from email addresses, the FCC closed this loophole by encouraging mobile providers to make email-to-text services opt-in only with clear opt-in mechanisms. This approach adds a critical layer of protection for consumers against spam and scams.
Do Not Call List Requirements
Commonly referred to as the National Do-Not-Call (DNC) Registry
The Order significantly impacts businesses relying on text messaging by clarifying that text messages are subject to the same National Do-Not-Call (DNC) Registry protections as phone calls. This clarification is critical because businesses must now ensure that their texting practices align with DNC rules to avoid regulatory penalties and consumer complaints.
The updated rules emphasize that businesses must screen text lists, obtain proper consent, and honor opt-out requests efficiently. As the compliance deadline has already passed, businesses that have yet to implement compliant measures face heightened urgency to act.
Compliance Note: TCPA does not preempt state laws that impose more restrictive requirements or prohibitions, so state marketing laws may have additional requirements for numbers on the National DNC Registry and/or state-specific DNC lists.
The following steps outline best practices:
The Rules state that businesses must apply the same DNC compliance processes to text messages as they do for phone calls:
- Access the DNC Registry: Screen all text recipients against the National DNC Registry to identify numbers that have opted out of marketing communications.
- Regular Updates: Update text message lists against the Registry at least every 31 days.
- Automate Processes: Implement automated tools to screen and flag DNC-listed numbers in real-time, ensuring no accidental outreach.
Under the updated rules, businesses must:
- Provide Immediate Opt-Out Options: Every text message must include clear and actionable opt-out instructions.
- Honor Opt-Outs Promptly: Opt-out requests must be processed immediately and reflected across all outreach systems.
- Maintain Internal Opt-Out Lists: Track and suppress numbers that have opted out of communications to ensure no further texts are sent.
Businesses must have the consumer’s prior express invitation or permission before texting consumers if the recipient is listed on the National DNC Registry.
- Explicit Language: Consent must clearly state the consumer is agreeing to receive text messages from your business.
- Specificity: Consent must identify the business by name and outline the purpose of the messages (e.g., marketing, updates).
- Documentation: Retain proof of consent, including timestamps and the exact language shown to the consumer.
To demonstrate compliance with the updated DNC rules for text messaging, businesses must maintain:
- Text Screening Records: Proof that text lists were screened against the National DNC Registry.
- Opt-Out Logs: Records of opt-out requests, including the date, time, and suppression actions taken.
- Consent Documentation: Detailed proof of prior express written consent, including timestamps, language, and collection method.
If a consumer or business opts in to receiving contact from your business, but is already on the DNC Registry, then your business is allowed to contact the recipient.
This assumes that the consumer or business has given "prior express invitation or permission" and not yet revoked consent, because the new Rules didn't alter the regulatory default to a consumer's consent overriding being on the DNC list.
Key Differences Between Contacting Consumers and Enterprises
Unfortunately, there is no simple exemption from the TCPA’s requirements when making outbound calls or texts to businesses. Courts and federal agencies have played a large role in interpreting the ambit of the TCPA and how it applies to calls to businesses. For example, business landlines are generally not protected under the National Do-Not-Call (DNC) Registry, but business cell phones that are used for both personal and business purposes may be covered. In sum, while the TCPA’s core purpose is to protect individual consumers rather than businesses, it does not mean that the TCPA does not protect businesses from receiving unwanted robocalls or robotexts.
With respect to the Rules, the FCC is clear that the Lead Generator Rule applies to business phones. The FCC states that the “requirements got prior express written consent for telemarking calls covered by the TCPA will also protect business phones from the floods of unwanted prerecorded telemarketing calls.” Therefore, while this may not be true for all the TCPA’s requirements, at least with respect to the Lead Generator Rule, we recommend that companies treat business and consumer phone numbers in the same regard.
Conclusion
The FCC’s Lead Generator Rule introduces critical updates that businesses must incorporate into their lead generation strategies if it is contacting consumers to solicit business via calls or text messages. The Rules reinforce the importance of obtaining prior express written consent, adhering to National DNC Registry requirements, and implementing clear opt-out mechanisms.
Compliance is not only about avoiding fines and penalties — it also strengthens brand reputation and builds customer loyalty by fostering trust and maintaining positive relationships with consumers and enterprise clients. While the FCC recognizes that compliance with the Rules generally, including the Lead Generator Rule, may increase costs for some businesses and may have a large impact on small businesses, the FCC states that the benefits of the Rules outweigh the costs, although time will tell what the true operational and financial impact on companies will be.
The costs of compliance will likely not outweigh the potential liability that a company may suffer if it violates the new Rules. Therefore, organizations that have not yet taken steps to ensure full compliance must act immediately to review and update their processes, as key effective dates have already passed. Proactive compliance ensures businesses remain protected and adaptable as regulations continue to evolve.