In a landmark decision, the Eleventh Circuit Court of Appeals has vacated provisions of the FCC's recent TCPA mandate. These provisions, which mandated "one-to-one" consent and restricted call topics through “logically and topically” requirements, were deemed to exceed the scope of the Telephone Consumer Protection Act. This ruling effectively reverts TCPA compliance requirements to the pre-January 27, 2025 standards.
In this blog, we’ll unpack this landmark decision, share our perspective at PX, and discuss its potential impact on the industry.
Timeline of key events:
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December 2023: The Federal Communications Commission (FCC) introduced new rules aimed at closing the "lead generator loophole" under the Telephone Consumer Protection Act (TCPA). These rules mandated consumers' consent before outreach and were set to take effect on January 27, 2025.
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January 2025: First came the news that R.E.A.C.H. successfully filed a petition due to the new administration to pause the implementation on January 27th. The outcome was that the mandate was postponed to be implemented for 12 months – which surprised many because the best possible outcome was to be through 60 days.
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Shortly thereafter, the courts decided on the challenge from The Internet Marketing Coalition (IMC) on the FCC’s rules in the Eleventh Circuit Court of Appeals. The court ruled in favor of the IMC, declaring that the FCC had overstepped its authority with the provisions requiring “one-to-one” consent and imposing “logical and topical” restrictions on call topics. The Eleventh Circuit’s ruling not only vacated these requirements but also barred the FCC from enforcing similar rules in the future, effectively nullifying the mandate.
Key Points:
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The vacated rules required:
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Separate consent for each company before outreach.
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Call topics to be logically related to the interaction that prompted consent (e.g., car loan inquiries couldn’t lead to unrelated topics like loan consolidation).
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The IMC argued these restrictions exceeded the TCPA's original scope, as the act doesn’t define “prior express consent.”
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The Court ruled:
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The FCC overstepped its authority by imposing stricter “prior express consent” rules.
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Consent, based on common law, can be broad and voluntary, covering multiple entities or unrelated topics if it is clear and unmistakable.
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Both the “one-to-one consent” and “logically related” restrictions were deemed inconsistent with the TCPA’s statutory framework.
What’s Changed?
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One-to-one consent is no longer required for most industries.
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However, Medicare must still comply with one-to-one consent rules, as required by the Centers for Medicare & Medicaid Services (CMS).
What’s our take?
As a customer acquisition platform, we welcome this decision and remain steadfast in our commitment to innovation. Our focus is on reducing inefficiencies and, above all, delivering improved consumer experiences. We firmly believe that consumers should never be treated as commodities. They deserve greater control over their journeys, with their privacy safeguarded at every step. We still believe 1-to-1 consent lead flows can help achieve this, along with higher conversion rates and yields for lead buyers and sellers.
At PX, we value compliance, regulations, and the responsible use of data. These values build trust and foster transparency for all stakeholders.
While one-to-one consent is no longer legally required for most calls, PX remains committed to supporting innovative solutions, including our Brand Explicit Consent offering as an option, which facilitates a higher level of consumer consent and better experiences between consumer and brand.
Since October 2024, PX clients utilizing Brand Explicit Consent have seen very promising results, including lifts in conversion rates from lead to sale of up to 95% and increases in lead generator yields of up to 40% when the consumer is provided with the option to select the brand.
How do we see this?
We are optimistic about the ruling and how our product, Brand Explicit Consent (BEC), enables innovation and value creation:
Our BEC solution offers a scalable framework for delivering better consumer experiences, maximizing conversion rates, and enhancing publisher profitability.
Looking ahead:
The regulatory landscape is evolving, with the FCC, FTC, and state attorneys general continuing to prioritize consumer protection and responsible data practices. Companies that focus on transparency, secure clear consent, and adhere to ethical standards will be better positioned to build trust and ensure compliance.
While these regulations introduced challenges, they also unlocked opportunities for industry growth:
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Enhanced lead quality: Higher lead prices, although arising from reduced volumes, reflect better quality. This allows agents and call centers to focus on high-value opportunities, improving productivity and efficiency.
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Improved conversion rates: Quality leads result in higher conversions, reducing reliance on speed-to-dial and enabling more meaningful consumer interactions.
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Stronger distributor performance: Streamlining inefficiencies from shared leads frees up resources for deeper consumer engagement, strengthening overall economics.
Embracing this change as an opportunity to innovate and elevate standards can enhance the consumer experience and create a more sustainable industry.
We’d love to hear your perspective—how do you see this shaping the future?