December 13, 2024 - A new federal rule tightening regulations on lead generation, as well as robocalls and robotexts is set to go into effect January 27, 2025.
The Federal Communications Commission’s (FCC) new rule — originally adopted in December 2023 — aims to protect consumers from scam communications by closing loopholes in the lead generation industry and strengthening text messaging regulations.
According to the FCC, these changes address vulnerabilities in robotext defenses, making it harder for businesses to rely on blanket consent for contacting consumers.
Violations of this rule could lead to severe legal consequences, as well as fines and penalties.
Who is the FCC?
Originally established in 1934, the FCC is an independent U.S. government agency tasked with regulating communications via TV, radio, wire, satellite, cable, and more recently, the internet and social media.
In addition, its responsibilities include protecting consumers, ensuring fair competition and promoting innovation in communications.
The president appoints the FCC commissioners, including the Chair, with Senate approval. Commissioners serve staggered five-year terms.
With a new administration set to enter the White House in 2025, it is possible FCC leadership could shift policy priorities, including this rule. However, a new Chair may not be appointed immediately, as commissioners serve staggered terms. Any process to modify or get rid of this rule certainly wouldn’t happen overnight.
What This Rule Impacts
The FCC’s rule has several important provisions that impact businesses relying on telemarketing and text campaigns:
Blocking Scam Texts
Mobile carriers must now block texts from “red-flagged” numbers, identified as sources of scam or illegal communications.
Do-Not-Call Protections for Texts
The rule extends Do-Not-Call list protections to text messaging, making it illegal to send texts to numbers on the registry.
Closing the Lead Generator Loophole
Lead generators must now obtain explicit, seller-specific consent from consumers. A blanket consent for multiple sellers no longer suffices.
Email-to-Text Opt-In
Carriers are now encouraged to require consumers to opt into email-to-text messaging services, reducing spam.
How This New Rule Impacts Your Business
This rule significantly impacts businesses using lead generation and paid search strategies. Here’s what you should expect and prioritize:
Potential Higher Lead Costs
Stricter consent requirements may lower the pool of available leads, making bidding on compliant keywords more competitive and expensive.
Ensure Compliance
Businesses relying on bulk telemarketing or texting campaigns need to ensure their practices align with these new regulations to avoid legal and financial repercussions.
Choose Quality Over Quantity
The rule encourages businesses toward more transparent and personalized marketing practices, which in turn may foster higher levels of trust.
The Right Approach to Lead Generation
Adapting to the new FCC rules requires careful attention to compliance and a commitment to ethical marketing practices. Start by thoroughly vetting your lead providers to ensure they follow the updated guidelines, protecting your business from potential legal and financial risks.
At the same time, diversify your efforts by leveraging other marketing verticals, such as:
- Engaging social media content
- Maintaining accurate and consistent business listings
- Encouraging authentic customer reviews
These strategies not only strengthen your reputation but also help balance the impact of stricter regulations.
Why Melon Local is the Right Partner
Partnering with a trusted digital marketing agency — like Melon Local — can help you drive the results you need while keeping you compliant with the latest regulations.
Our business model remains unaffected by these changes because we’re rooted in transparency and results in everything we do.
Ready to grow? Learn more about our fresh approach to digital marketing by scheduling a custom-tailored demo today!