January 8, 2025
FCC’s One-to-One Consent Rule Explained
Over the last few years, the Federal Communications Commission (FCC) has taken several steps to decrease the number of unwanted calls and texts consumers receive. Those measures have already had a significant impact. Just recently, the Federal Trade Commission (FTC) reported that unwanted telemarketing calls were down more than 50% since 2021.
The FCC’s one-to-one consent rule should limit unwanted calls even more by changing how businesses gather and contact leads. Organizations will need to prepare for the new regulations before they go into effect on January 27, 2025.
What Is the One-to-One Consent Rule?
The one-to-one consent rule closes a loophole that lets companies use leads purchased from other organizations. By the end of January, each company will need direct consent before contacting consumers via robocalls or robotexts.
When authorities investigated the source of unwanted calls and texts, they found that many people reporting the complaints had never consented to automated communications. They had, however, given their contact information to “consent farms” that collect and sell consumer data to third-party groups. Those groups would then contact people even though they didn’t have direct consent. The one-to-one consent rule should close this loophole by requiring all businesses to get direct consent from each person before using automated technologies to contact them.
Learn more: FCC Implements Robotext Regulations and Closes Lead Generation Loophole
Consumer Protection Commitment
The FCC’s one-to-one consent rule bolsters the commission’s commitment to consumer protection. It also emphasizes the importance of building positive relationships. Years of spam and scam calls have damaged consumer confidence. In 2020, a survey from the Pew Research Center showed that about 80% of Americans don’t answer calls from unknown numbers.
Increased consumer protection could help reverse that trend, making it easier for businesses to connect with people in ethical ways that benefit all parties.
What Are the New Requirements?
The one-to-one rule expands compliance standards established by the National Do Not Call (DNC) Registry and the Telephone Consumer Protection Act (TCPA). After January 27, 2025, businesses must:
- Get explicit, written consent from each consumer before using automated technology to contact them
- Disclose how they plan to contact consumers (such as via robotexts or robocalls) in a way that the average person would understand
- Only send consumers logical, topical information (for instance, an ecommerce company might send texts about an upcoming sale, but it could not use its leads to promote unrelated services like debt consolidation)
- Avoid texting numbers in the DNC
- Maintain thorough records for at least five years from the date of consent so regulators can review adherence
Importantly, each consumer’s consent only applies to the company they give it to. If a person gives consent to Company A, Company B cannot use that consent to contact leads. This is at the heart of closing the “consent farm” and “lead generation” loopholes.
Exceptions to the One-to-One Consent Rule
The FCC allows some reasonable exceptions for the one-to-one consent rule. They primarily apply to situations when advertisers need to communicate with consumers to keep them safe. For example, a store selling a product that gets recalled might need to contact buyers to warn them about the product’s dangers. In this case, the company could use automated technology to contact consumers without getting explicit, written consent from them.
Best Practices for Consent Compliance
Some businesses will need to rethink how they acquire leads as they adjust to the one-to-one consent rule.
If your business purchases lead lists from third-party providers, stop doing so immediately. According to the new rule, you don’t have consent to contact the people on those lists.
Instead, pivot to a lead-generation strategy that includes:
- Communicating your intent clearly
- Giving customers a clear way to unsubscribe if they want to
- Documenting all consent agreements
While conforming to the one-to-one consent rule could disrupt businesses at first, it could also lead to better performance. By using organic lead lists, many companies can expect to see higher answer rates and conversions. Brand reputation could also improve since consumers know they consented to getting calls and texts. In the long run, these changes will create rewarding relationships that benefit ethical companies.
Why the “Lead Generation Loophole” Is Closing
Closing the “lead generation loophole” makes advertisers responsible for following ethical standards that protect consumers. Some companies already follow similar guidelines because they understand the importance of maintaining positive relationships with consumers. Others purchase lead lists and bombard the public with unwanted calls and texts.
The situation has gotten better in recent years, but it’s still an ongoing annoyance that threatens all businesses, regardless of how they treat potential customers. By closing the loophole, the FCC makes it much harder for unscrupulous organizations to benefit at the expense of others. It’s a boon to consumers and other companies.
Lead Generation Moving Forward
Moving forward, auditing leads and adopting better standards to ensure compliance will become increasingly important.
Ideally, companies have already scrutinized their practices and updated their lead-generation strategies. Those that haven’t will need to make changes quickly to meet the January 27 deadline. Changes could involve adopting a reliable e-signature solution, culling old leads from current lists, and revamping how they collect leads through websites, emails, in-person events, and other means.
