FCC TCPA Update: The nuances of sweepstakes leads

The landscape of lead generation and performance marketing is poised for significant change in the next year due to the latest FCC ruling. In order to help companies prepare for these changes, ActiveProspect has launched a new FCC-centric webinar series dedicated to parsing through the details and nuances of the latest updates to the Telephone Consumer Protection Act (TCPA).

In the first webinar episode, “Decoding the latest FCC ruling,” our Director of Privacy, Security, and Compliance, Benjamin Farrar, and Launch Potato’s General Counsel Craig Ready focused on addressing several initial concerns that were raised following the announcement of the FCC’s proposed changes. The panelists covered a variety of topics including the evolution of the ping pick post model, a dissection of ‘logical and topical,’ and the future of lead-generating sweepstakes (sweeps) websites.

“The other area that this really impacts is sort of the traditional core model like sweepstakes,” Ready explained. “For example, Launch Potato has a site called PrizeGrab dot com, which is a traditional sort of sweepstakes. You sign up, you give some information, and you’re taken through a survey flow where you answer some questions. Then certain questions are essentially advertisements for you to either move on and sort of skip that question, or you can answer yes and then the company that’s advertising will reach out to you.”

User interactions are the core around which the updated FCC rules revolve. Consent, as interpreted under these changes, necessitates a 1-to-1 correspondence, meaning that the company initiating contact with the consumer must be explicitly stated on the lead form. However, the interpretation for all involved parties represented on a sweepstakes website remains a topic of debate.

“Can you only have sweepstakes-related companies advertise on your site? Can it be other kinds of companies that aren’t related to that? That’s, that’s sort of the question that we’re all having to grapple with,” Ready stated.

Businesses may find this sweepstakes uncertainty perturbing, complicated, or even incapacitating, but it highlights an opportunity for risk management and proactivity. As discussed in the webinar, some of the best practices shared to start tackling these nuances were the redesign of websites with diversified content, an increased focus on a consumer-first approach, and the creation of an environment of transparency to combat any unforeseen dilemma.

In preparation for these changes, Launch Potato has already shifted its approach on certain sites to be compliant with the latest update and even discovered a hidden benefit with this user-centric approach.

“We’ve sort of moved toward this 1-to-1 model in advance of the FCC rule,” Ready said. “And, you know, we’re seeing higher quality and intent in our leads.”

Businesses must focus on the intersection of user experience and compliance – a sweet spot where the quality of traffic, despite reduced volume, promises higher conversion rates. This tectonic shift in marketing and lead generation could usher in a new era of explicit consent and undisputed transparency, propelling the industry to newfound heights. While the terrain of TCPA changes may seem tough, Ready remains optimistic about the future of the industry.

“If I know anything about salespeople, account managers, and business leaders, they’re endlessly creative, and they will find ways to make their business model work in light of the rule.”

ActiveProspect is committed to being a valuable resource and a guiding light during these uncertain times. Episode 2 of our FCC-centric webinar series, “Navigating the new norm: The intersection of TCPA updates, privacy, and the lead-gen industry,” with Attorney Gary Kibel goes live on January 31st.  This is not a time to panic, but a time to prepare. In the near future, where consent is becoming the ultimate priority, ActiveProspect’s consent-based marketing platform is here to help safeguard your business.

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