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Resource Centre
Cheque out the following resources released by the FCC:
- FCC fact sheet
- FCC announcement outlining new rules
- FCC report and order and further notice of proposed rulemaking
The FCC will enforce regulatory changes to protect consumers from unwanted marketing communications and enhance the integrity of telecommunications. Central to these changes will be the new one-to-one consent rule, which will take effect on January 27, 2025. This blog will primarily focus on understanding this specific component of the broader FCC ruling and its implications for your business.
Prior to this rule change, FCC regulations permitted sharing a consumer’s consent to multiple entities listed on a single lead form. However, under the new consent rule, this practise will be prohibited. Businesses will be required to obtain prior express written consent from consumers for each seller individually, one at a time, to ensure consumers are protected from excessive unwanted marketing communications.
The rule will significantly impact businesses, particularly those involved in lead generation, marketing, and sales.
Background on FCC’s Efforts to Mitigate Robocalls
The FCC has long been at the forefront of efforts to combat robocalls. Initiatives like the STIR/SHAKEN protocols have been implemented to prevent caller ID spoofing, a common tactic used in fraudulent robocalls. These protocols authenticate caller ID information to ensure that the displayed number is accurate, helping consumers trust the calls they receive.
The FCC’s one-to-one consent rule is a new regulation that will modify the existing Telephone Consumer Protection Act (TCPA). This change will aim to provide greater transparency and control for consumers over who contacts them and for what purpose.
Key Facets of the FCC’s One-to-One Consent Rule
Preparing for the FCC’s new regulations will require a firm understanding of the one-to-one consent rule.
One-to-One Consent
Under the new rule, businesses can no longer bundle consent for multiple goods or service providers on a single lead form. Each seller must obtain separate, prior express written consent from the consumer. This means that lead generators and marketers must revise their consent forms and processes to comply with this requirement.
Impact on Lead Generators and Marketers
Lead-generation businesses will need to adapt to these changes by ensuring their consent forms are clear and specific. This will involve updating online forms, scripts, and other mechanisms used to obtain consumer consent. The shift to one-to-one consent may increase operational complexity and require more sophisticated data management practises.
Challenges & Considerations
The following are potential obstacles for businesses to consider when preparing for the impending changes to obtaining consumer consent for receiving marketing calls or texts.
Complexity of Autodialler Definitions
One of the ongoing challenges under the TCPA is the complex and continuously evolving definition of what constitutes an autodialler. An autodialler, or Automatic Telephone Dialling System (ATDS), is defined as, “equipment which has the capacity—(A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers.” Businesses must stay informed about the latest interpretations and ensure their dialling technologies comply with TCPA regulations.
Handling Manual Dialling
Although the one-to-one consent rule will specifically pertain to calls made using regulated technology, manual dialling is not entirely exempt from compliance concerns. Some businesses may pivot to using compliance and engagement solutions for consumer consent management to comply with FCC regulations and minimise risks associated with manual dialling practises.
State-Level Regulations
Businesses must also be aware of state-specific laws in addition to federal mandates. Some states have their own TCPA-like regulations that may impose additional requirements. For instance, certain states prohibit calls made without prior express written consent regardless of federal law allowances.
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How Will the Rule Change Affect Businesses?
Here are some potential implications for businesses stemming from the one-to-one consent mandate.
Obtaining & Documenting Consent
Businesses will need to implement robust processes for obtaining and documenting consumer consent. This will include ensuring that the consent record clearly demonstrates one-to-one consent was obtained. Documentation from a reputable consent management platform is likely to be sufficient, although this has not yet been confirmed by courts.
Listing Sellers on Consent Forms
Simply listing your company name on a consent form will not comply with the new FCC rule. The form must specify the ultimate provider of the good or service, known as the “seller.” Lead generators must accurately represent the relationship between the consumer and the seller to avoid legal issues.
Independent Agents & Consent
One unique aspect of the one-to-one consent rule is its focus on the “seller.” If a consumer consents to hear from a seller, such as an insurance carrier, independent agents authorised by that carrier do not need to be individually listed on the lead form. This will allow independent agents to continue operating without significant changes to their current practises.
Preparing for Compliance
To make strides toward complying with the new one-to-one consent rule, businesses may consider:
- Revising Consent Processes: Update all mechanisms used to obtain consumer consent to ensure individual, one-to-one consent is obtained for each seller.
- Ensuring Logical & Topical Relevance: Make sure that the lead generation process is both logically and topically related to the calls that will be made.
- Possessing Consent Records: Confirm that the caller has possession of the consumer consent record before initiating any calls.
Looking Toward 2025
The FCC’s new one-to-one consent rule will represent a significant shift in how businesses approach consumer consent. Being proactive will be the difference between businesses that will successfully navigate the FCC rule change and those that fail to prepare for the evolving regulatory landscape. By understanding and adhering to these new requirements, businesses can ensure compliance and build greater trust with their consumers.
Stay informed on updates to the FCC’s one-to-one consent rule change by checking out the Phonexa blog.
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