FCC ADOPTS NEW RULES TO CLOSE THE ‘LEAD GENERATOR’ ROBOCALL AND ROBOTEXTS LOOPHOLE

On December 13, 2023, the Federal Communications Commission (FCC) implemented a set of new rules designed to strengthen defenses against scam robotexts and address vulnerabilities that have allowed unscrupulous practices to exploit consumers. These rules mark a crucial step in the ongoing battle against unwanted and illegal calls and texts, with a particular focus on combating the surge in scam text messages that pose serious harm to consumers.

One of the key provisions empowers the FCC to “red flag” specific numbers, compelling mobile carriers to block texts originating from these flagged sources. This mechanism allows for a proactive approach in blocking potential scam messages. Furthermore, the rules extend the protections of the National Do-Not-Call Registry to text messaging, making it illegal for marketing texts to be sent to numbers listed on the registry.

The FCC’s effort to close the “lead generator” loophole is a significant component of these new rules. This practice, exploited by unscrupulous entities, involves inundating consumers with unwanted and illegal robocalls and robotexts. The new rules explicitly state that comparison shopping websites and lead generators must obtain individual consumer consent for each seller’s robotexts. This ensures a more transparent and controlled communication process, preventing a single consent from applying to multiple telemarketers.

Additionally, the FCC encourages an opt-in approach for email-to-text messages. By making this service opt-in, the effectiveness of a major source of unwanted and illegal text messages is limited, offering consumers more control over the messages they receive.

The Telephone Consumer Protection Act (TCPA) also underwent a significant amendment as part of these rule changes. The FCC now requires lead generators to obtain consumer consent for robocalls and robotexts from one seller at a time, discontinuing the previous practice of a single consent applying to multiple sellers. The rules also enable mobile carriers to block specific text messages, adding an extra layer of protection against potentially illegal texts.

The FCC’s proactive measures include a twelve-month implementation period to allow businesses to adjust their practices to comply with the new requirements. The FCC emphasizes the importance of clear and conspicuous disclosure in obtaining consent, ensuring that consumers are aware of the potential robotexts or robocalls and that their consent is optional and not a condition of purchase.

The FCC’s commitment to addressing the challenges posed by scam texts is further demonstrated through ongoing efforts such as proposing additional blocking requirements, exploring text message authentication standards, and encouraging providers to make email-to-text messages an opt-in service.

While these rules are aimed at enhancing consumer protection, they also have significant implications for businesses involved in advertising and telemarketing. Adapting to the new consent requirements, ensuring clear and conspicuous disclosures, and complying with the twelve-month implementation period are crucial steps for businesses to navigate these regulatory changes successfully. The FCC’s multifaceted strategy, including the robust actions of the Robocall Response Team, underscores its dedication to mitigating the impact of illegal robocalls and robotexts on consumers and fostering a more secure communication environment.

 

Leave A Comment?

This site uses Akismet to reduce spam. Learn how your comment data is processed.