Marketers and lead generators have new guidance in the form of enforcement orders on what the Federal Trade Commission (FTC) appears to consider required practice when obtaining consumer consent prior to the sale, transfer, or disclosure of consumer information that will be used in marketing.

The upshot is that the FTC provided several affirmative requirements it would want to see relating to the sale, transfer, or disclosure of consumer information by lead generators, including when obtaining consumer consent prior to transfer to a third-party marketer. But the FTC has also taken direct aim at the use of hyperlinks used to make disclosures of the identities or names of persons to whom the information will be sold and other information, prior to the consumer providing consent, a step taken by many lead generators to avoid violating the FTC Act and the Telemarketing Sales Rule (TSR).

The FTC and other federal and state law enforcement partners recently announced “Operation Stop Scam Calls.” A focus of the announcement was several enforcement actions against marketers and lead generators, including actions where the FTC alleged the defendants acted as “consent farms,” which, in the FTC’s opinion, improperly obtained consumers’ consent by using deceptive ads and “dark patterns” to trick consumers into providing their personal information and consenting to receive prerecorded calls and other marketing solicitations.

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Photo of Jonathan L. Pompan Jonathan L. Pompan

Jonathan Pompan is co-chair of the firm’s Consumer Financial Services Practice Group and Consumer Financial Protection Bureau (CFPB) Task Force. Jonathan’s practice focuses on providing comprehensive legal advice and regulatory advocacy to a broad spectrum of clients, such as nonbank financial products and…

Jonathan Pompan is co-chair of the firm’s Consumer Financial Services Practice Group and Consumer Financial Protection Bureau (CFPB) Task Force. Jonathan’s practice focuses on providing comprehensive legal advice and regulatory advocacy to a broad spectrum of clients, such as nonbank financial products and services providers, advertisers and marketers, and trade and professional associations, before the CFPB, the Federal Trade Commission (FTC), state attorneys general, and regulatory agencies. At a time when government consumer protection agencies are stepping up their scrutiny, Jonathan develops strong and lasting relationships with clients by understanding their business objectives, helping them recognize opportunities and avoid legal pitfalls.

Photo of Leonard L. Gordon Leonard L. Gordon

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Photo of Ellen T. Berge Ellen T. Berge

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Photo of Shahin O. Rothermel Shahin O. Rothermel

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Shahin Rothermel is an experienced counselor and defender who helps advertisers, retailers, merchants, and marketers advance their business goals while reducing legal and regulatory risks. Shahin provides clients with up-to-date, practical insights into the constantly evolving advertising, marketing, and e-commerce regulations, which allows her clients to make informed decisions. She has achieved successful resolutions, dismissals, and full walkaways in court, saving clients millions of dollars. She takes a pragmatic approach as a counselor, considering the implications of her advice for her clients’ marketing campaigns and their bottom lines.