The Federal Communications Commission adopted rules for the Telephone Consumer Protection Act that aim to protect consumers against robocalls and robotexts from lead generation and comparison shopping websites and give consumers the ability to choose which businesses can contact them.
Some argue that legitimate businesses would be hurt because their ability to use texts and automated calls will be curtailed.
The FCC also made it illegal for businesses to send marketing texts to consumers on the Do-Not-Call list.
The FCC also approved rules to close the so-called lead generator loophole by giving consumers a way to clearly express consent when choosing which businesses have permission to contact them on behalf of a specific service.
Under the new rules, lead generators and comparison shopping websites can only share consumer contact information after the consumer has selected the business and its specific service from the list of businesses provided.
After the consumer submits their selections, then only those specific businesses can contact the consumer on behalf of the services listed in the submission form.
Some of those who back the new FCC approach say that in response to the new rules, businesses will redirect their outreach away from automated calls and texts, instead conducting marketing with email, messaging apps and social media platforms.
Businesses could circumvent these rules that would lead to significant threat of litigation by simply changing channels and using apps like WhatsApp and Facebook Messenger, Castro said.
Bad actors who want to exploit consumer information could use these tactics as well.
Critics say scammers will likely disregard the FCC's new rules.
The rules will instead have a greater negative effect on well-meaning businesses.
Tilton also said she predicts that small businesses still using auto dialers that can't pay for an in-house lead generation or marketing team will be most affected.
In the health insurance market, many independent agents rely on leads that they can buy to build their book of business.
Now we have to make sure that what we offer consumers is relevant to the consumer and valuable to the consumer.
According to Castro, the FCC's new rule requiring businesses using lead generators to first get express permission from consumers via an opt-in submission that lists individual businesses and their offerings, will block many businesses from connecting with customers using standard lead generation techniques.
He said agrees with the FCC's goal to give consumers more control over what businesses have access to their information when interacting with lead generation and comparison shopping websites.
This Cyber News was published on www.techtarget.com. Publication date: Tue, 16 Jan 2024 19:13:04 +0000