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Resource Centre
Cheque out the following resources released by the FCC:
The FCC is set to enforce its new one-to-one consent rule on January 27, 2025.
This regulation, which will prohibit the sharing of a consumer’s consent to multiple entities listed on a lead generation form, will represent a significant shift in how businesses must obtain and manage consumer consent for marketing communications.
The implications of this regulatory change will affect contact centres in particular, as they frequently rely on lead generation forms to gather information about potential customers. The collected data from these forms, including contact information and consent, is used by call centres to reach out to these leads and initiate sales conversations, scaling their outreach efforts in the process.
This blog will explore the potential impact of this FCC regulation on businesses that utilise contact centres. Understanding the intricate details of this rule will be essential for maintaining compliance and avoiding potential legal pitfalls.
Understanding the One-to-One Consent Rule
Adhering to compliance mandates that protect consumer rights is a regular practise for contact centre operators. In addition to the Telephone Consumer Protection Act (TCPA), successfully implemented regulations include STIR/SHAKEN protocols to authenticate caller ID information, verify the accuracy of the displayed phone number, and reduce illegal spoofed calls.
The one-to-one consent rule is a new addition to the existing regulations under the TCPA. Before this rule, businesses could bundle consumer consent for multiple entities on a single form, sharing a consumer’s consent among several companies.
Under the new regulation, businesses must now obtain prior express written consent for each seller from consumers individually, one at a time, to protect them from being inundated with unwanted marketing communications.
Obtaining one-to-one consent is only one component of the FCC’s new consent regulation. Additional aspects and requirements of the new rule include:
- Consumer Control: The rule will aim to improve consumer control by ensuring they are fully informed about and consent to each individual entity that will contact them. This seeks to reduce the volume of unwanted calls and increase transparency to consumers.
- Clear and Specific Consent Forms: Contact centre operators must update their online forms, scripts, and other mechanisms to clearly and specifically capture consent. This will include making sure the consent forms are easy to understand and that the consent process is straightforward.
- Documentation and Record-Keeping: Businesses must maintain thorough records of consumer consent. The FCC will require that the caller possess the consent record before initiating any calls. This will ensure a clear trail of the consumer’s consent, which is crucial for compliance and potential audits.
Impact on Contact Centres
The implementation of the one-to-one consent rule will have several implications for contact centres.
- Increased Operational Complexity: Complying with the one-to-one consent rule may increase operational complexity and costs for contact centres. Ensuring each consent record is properly tracked and stored may require internal processes for obtaining and documenting consumer consent to be updated, which can require significant time and resources.
- Consumer Experience: While the rule aims to protect consumers, it also means that contact centres must be more diligent in how they engage with potential leads. Clear communication and straightforward consent processes are essential to maintaining a positive consumer experience.
- Risk Management: The need to obtain prior express written consent from each consumer for each seller will increase the complexities of risk management. Contact centres must now focus on implementing comprehensive compliance strategies to mitigate legal and financial repercussions.
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Potential Challenges and Benefits of the One-to-One Consent Rule
The one-to-one consent rule will present several challenges for contact centres, including but not limited to the following:
- Potential Decrease in Lead Volume: The new consent requirements may result in a decrease in lead volume. Consumers might be less inclined to provide consent to multiple entities individually, leading to fewer opportunities for contact centres to engage with potential customers and thereby impacting sales and marketing efforts.
- Higher Compliance Costs: Adapting to the new rule can involve higher compliance costs. This may include the need for updated technology and training to ensure compliance. Additionally, maintaining detailed consent records will require robust data management systems, which can be costly to implement and maintain.
- Impact on Marketing Strategies: Marketing strategies will need to be rethought to align with the new consent requirements. Traditional methods of bundling consent for multiple entities will no longer be viable, necessitating a pivot toward more personalised and targeted marketing approaches. This transition may take time and adjustment.
- Uncertainty in Compliance: The rule’s requirement for consent to be “logically and topically related” to the transaction is somewhat vague, leading to uncertainty in compliance. Until further clarification is provided by the FCC or the courts, contact centres might struggle to determine the exact scope of what is permissible, increasing the risk of non-compliance.
Despite these challenges, the new consent rule will also offer significant opportunities for operational improvement.
- Setting the Groundwork for Long-Term Relationships: By being transparent with consumers about which specific entities will contact them, contact centres will ultimately build trust and establish more meaningful and welcomed interactions with their target audience.
- Enhanced Consumer Satisfaction: By requiring one-to-one consent for each contact, the rule reduces the likelihood of consumers receiving unwanted communications. This can lead to fewer complaints and improved consumer satisfaction as individuals will have more control over who may reach out to them.
- Improved Compliance: Adhering to the one-to-one consent rule can lead to improved compliance with the TCPA, reducing the likelihood of legal repercussions and fines, which can be significant under TCPA violations. Compliance also fosters a more ethical approach to marketing and customer outreach.
- Quality Over Quantity: The rule change will encourage call centres to focus on the quality of leads instead of quantity. By obtaining one-to-one consent, contact centres can ensure they are engaging with more interested and high-intent consumers. This will help contact centres achieve higher conversion rates and better customer relationships.
Contact centres must carefully weigh these pros and cons as they adapt to the new regulatory landscape.
Preparing for Compliance
As contact centres navigate new regulatory changes, the focus will inevitably veer toward meticulous consent management and ethical marketing practises. The future of contact centre operations will lie in balancing compliance with effective consumer engagement, ultimately leading to higher-quality interactions and improved customer satisfaction. Adapting to these changes will require a strategic approach to consumer consent, ensuring regulatory compliance and business success in a more regulated environment.
Stay tuned to the Phonexa blog for updates on the FCC’s one-to-one consent rule change.