How to Ensure TCPA Compliant Lead Generation in 2024?

You could be paying $500 to $1500 per TCPA violation.

Real estate behemoth, Keller Williams, paid as much as $40 million just last year.

And Final Expense Direct (FED)—despite partnering with a so-called TCPA-compliant lead generation agency—ended up paying a $100,000 fine!

Why?

Because the agency they trusted didn’t properly adhere to TCPA regulations. The flaws and loopholes in their operations cost FED money, time, and reputation.

Ultimately, FED sued this lead gen agency, won the case, and the lead generation agency is the one who was completely utterly destroyed.

The lesson is clear: trusting the wrong partner can lead to devastating consequences.

↳ What could have that lead gen agency done better? 

↳ Is there a way for lead gen agencies to secure themselves completely from TCPA complaints?

↳ How can a business tell if a lead gen agency will deliver leads that accurately comply to TCPA guidelines?

Those are some questions we’ll be answering in this post.

Whether you’re selling leads or purchasing them, you will learn everything that you need to know about TCPA compliant leads & TCPA lead generation. 

What is TCPA?

The Telephone Consumer Protection Act (TCPA) is a United States federal law enacted in 1991 to protect consumers from unwanted telemarketing calls, faxes, and texts. 

It is enforced by a regulatory body called Federal Communications Commission (FCC).

The TCPA restricts the use of:

• Automatic dialing systems
• Artificial or prerecorded voice messages
• SMS text messages
• Fax machines

Safeguarding end users from annoying calls. 

The Act ensures consumer protection by specifying technical requirements for fax machines, autodialers, and voice messaging systems—especially regarding the use of lead identification details and contact information.

Under the TCPA, businesses must obtain explicit consumer consent before making robocalls or sending texts to their phones. 

It also requires businesses to:

• Contact Hours: Businesses can only contact consumers during specific hours (i.e., 8 am to 9 pm).
• Do Not Call Lists: Respect both National and State Do Not Call lists.
• No Contact List: Maintain an internal no-contact list.
• Clear Identification: Provide clear identification and contact information in all communications.

TCPA guidelines allow consumers to file lawsuits and collect damages for receiving unsolicited telemarketing calls, faxes, or texts. 

In 2023 alone, approximately 1454 TCPA lawsuits were filed.

TCPA violations can be costly for businesses. Statutory penalties can range from $500 to $1,500 per unauthorized call or message.

As of 2024, the TCPA has been further refined and updated to meet the complexities of modern day communication — we’ll explore that in deeper detail in just a bit.

But before that, you need to know why the TCPA is a big deal…

And how does one TCPA violation could potentially ruin your entire business…

Beware of Class Action Litigation

A single TCPA violation could lead to millions in fines, as mentioned above.

Let’s look at some more cases of how heavy these fines could be:

1. Dish Network faced a $280 million settlement in 2017 for TCPA violations.
2. Papa John’s paid $16.5 million in 2013 due to unsolicited text messages. This led to diminished consumer trust and brand credibility.
3. Bank of America’s faced a $32 million settlement for robocall violations. Apart from substantial financial losses, this led to negative publicity.

For small and mid-sized businesses, you might wonder, “Who is going to keep track if I have TCPA-compliant leads or not?” or “Why would someone file a lawsuit over one annoying call?”

Well….

There are legal firms waiting to profit from your mistakes.

And yes, they make millions.

Yep.

When a frustrated customer contacts them, they help this person take legal steps against your business. 

Once you’re proven wrong, they win hefty amounts—essentially the penalty you pay. 

A large chunk of this penalty goes to the legal firm, and the rest to the complaining consumer.

That said, the legal firms make their stance strong with “class action”

A class action is when a legal firm boosts its case by reaching out to individuals who received the same non-TCPA-compliant messages. 

They might even advertise their services to these individuals, inviting them to join the fight against your company.

This move could make their case stronger, increase their chances of winning, and might increase the total penalty you’d have to pay.

But you don’t need to worry!

Because you’re here 🙂

We promised to show you how to protect yourself from TCPA complaints completely. Up next, we’ll get into the nitty-gritty of just that.

Which lead generation practices are affected by TCPA?

To safeguard yourself completely as a lead agency, it is important to understand what lead generation practices are affected by TCPA guidelines.

Here are the forms of lead generation that most directly affected by TCPA guidelines 2024:

1. Telemarketing Calls

• Automated Calling Systems: Any system that can dial numbers without human intervention.
• Pre-recorded Messages: Calls that deliver a recorded message instead of a live person speaking.
• Live Telemarketing: Direct calls made by human operators that may or may not follow a scripted dialogue.

2. SMS and Text Messaging

• Automated Text Messages: Texts sent to mobile devices using an autodialer.
• Bulk SMS Campaigns: Large-scale text messaging campaigns targeting a list of mobile phone users.

3. Robocalls

• Political Campaign Calls: Automated calls made on behalf of political candidates or parties.
• Charity Fundraising Calls: Automated calls made to solicit donations for non-profit organizations.

4. Ringless Voicemail

• Direct-to-Voicemail Drops: Messages sent directly to a recipient’s voicemail without causing the phone to ring.

How TCPA affects lead generation from 2024?

Back in 1991, TCPA primarily prohibited two things without your prospect’s consent:

1. Unsolicited telemarketing calls with prerecorded messages to residential phone lines.
2. Automatic or prerecorded non-emergency calls to mobile numbers.

In 2003, FCC expanded TCPA’s restrictions to text messages. Businesses must not send unwanted marketing messages to prospects without prior consent.

In 2024, TCPA requirements have been further refined. Here are the key provisions and their impact:

1. End of the Multi-Partner Consent Practice

Previously, it was common for lead generators to obtain a single consent from a consumer that would apply to multiple marketing partners. 

This practice allowed numerous companies to contact the consumer without separate consent. 

Now, the FCC has closed this loophole. 

Prior Express Written Consent (PEWC) must be obtained from consumers on a one-to-one basis — meaning businesses should directly get this consent from a user via website or any other marketing channel. 

It could be in the form of a digitally signed form, a confirmation email, or an online agreement checkbox.

2. Requirements for Consent

Concerning ‘consent of the consumer’, we see the following changes:

• 1:1 Consent: Consent must now be obtained separately for each marketing partner. General consent for an unspecified number of third parties is no longer valid. Consumers must also have the option to opt-out at any point.
• Clear & Noticeable Disclosure: The request for consent must be clearly visible, not hidden in fine print or behind hyperlinks. It should be displayed via a pop-up, landing page, email, or similar method.
• Content Relevance: Marketing messages sent to an opted-in consumer should be relevant to their initial interest, ensuring they only get useful content.

LeadsHook is a lead generation software that can help you gain clear and direct consent from the consumer in a super smooth way (using Jornaya or TrustedForm) — hop onto the next section to see how it really works!

Another challenge for those selling leads to multiple clients on an auction basis is securing 1-to-1 consent.

Specifically, you need to list all the marketing partners who might buy the lead or identify the exact buyer from your list of potential buyers.

Unfortunately, many lead distribution platforms don’t offer this functionality as of late 2024.

So, we developed a FREE solution to ensure TCPA-compliant 1-to-1 consent forms for multiple clients.

3. Implications for Businesses

The new changes impact businesses in the following ways:

• Proof of Consent: The caller or sender (usually lead gen agencies) must be able to prove they have valid consent. So, businesses need to confirm direct approval from consumers for each message. This, in turn, makes consent verification much easier as compared to when consent was obtained from third-parties.
• Adjustment Period: The new rules will take effect 12 months after publication in the Federal Register (likely in late 2024 or early 2025), giving businesses time to adjust their lead generation practices. This includes stopping the use of single consents for multiple marketers and possibly redesigning consent mechanisms.
• Future Compliance and Oversight: The FCC also indicates ongoing efforts to refine and clarify TCPA requirements, suggesting that businesses should stay alert to further regulatory updates that could impact how consent must be managed and verified.

Don’t stress too much if your lead generation practices aren’t fully compliant with the new TCPA guidelines just yet. These updates won’t take effect for another 12 months.

But where exactly do you start in making your lead generation activities more TCPA friendly? Let’s look into that…

How to generate TCPA compliant leads?

Now, let us show you how you can generate TCPA compliant leads –the ones that do not risk business owners or lead generators at ANY stage of the marketing or sales cycle…

The process can be broken down into three key steps:

1. Technical Setup 

The journey begins by choosing a reputable lead compliance partner. While several options exist, including CompliancePoint, ActiveDemand, Optizmo…

But for unparalleled trust and reliability, we recommend partnering with the industry’s gold standard:

• Jornaya 
• ActiveProspect

These industry leaders have been trusted by businesses for years due to their proven track records of excellence.

Once you’ve chosen your lead compliance partner, create an account on that respective platform.

Next, ensure you have a LeadsHook account. 

If you’re already a part of the LeadsHook community, you can proceed to the steps below. 

However, if you’re still considering your options for lead generation software, we invite you to check out how LeadsHook has changed the game for many reputable lead generation agencies:

View All LeadsHook Reviews 

Our 14-day trial is completely free and includes access to all premium features. Trying it out is risk-free and could unlock significant growth opportunities for your business!

Once you have both accounts, follow these step-by-step guides to initiate lead tracking:

• How to set up Jornaya LeadId inside LeadsHook?
• How to set up TrustedForm by ActiveProspect?

Integrating these tools (i.e., your lead gen software & lead compliance solution) ensures that every lead collected through your landing page or lead magnet is TCPA compliant.

Here’s how:

Integration Process

The integration of lead generation software (like LeadsHook) with lead compliance solutions (like Jornaya or ActiveProspect) ensures that every lead you collect is TCPA compliant. Let’s break it down:

LeadsHook Setup:

1. Double Opt-In Forms: Use double opt-in forms to confirm user consent via email. This step ensures that users explicitly agree to be contacted.
2. Clear Explanations: Provide clear and concise explanations of terms and policies to the user.
3. Detailed Records: Maintain detailed records of consent acquisition, including timestamps and methods.

Lead Compliance Software (Jornaya or ActiveProspect):

1. Regular Scrubbing: Regularly scrub lead lists against the Do Not Call (DNC) registry.
2. Manage Opt-Outs: Effectively manage opt-out requests to ensure compliance.
3. Certificate of Authenticity: Provide a certificate of authenticity for TCPA-compliant leads, usually valid for up to five years.

This certificate is a crucial component.

Lead generators can present this to business owners when selling leads and business owners can also use this to prove they acquired leads with TCPA permission — when facing any legal issue.

Plus, this software swiftly removes specific leads upon request and may also run re-opt-in campaigns for ongoing TCPA compliance.

💡 What is Contact State Custom URL?

A Contact State Custom URL assigns specific web links to various customer contact stages in contact center software, unlike Jornaya and TrustedForm, which focus on lead validation. 

This feature guides customers through the contact process, enhancing TCPA compliance by directing them to relevant resources. 

For example, imagine a customer calls a contact center to inquire about a product. The agent can guide the customer through various stages, such as providing information or obtaining consent — by directing them to different custom URLs as needed.

If you integrate this system with LeadsHook, you can ensure comprehensive lead generation as well as TCPA compliance. 

Here’s a step-by-step guide to adding Contact State Custom URLs in LeadsHook.

2. Legal Setup

Lead generators need to invest in two types of legal setups:

1. TCPA Consent Disclosure 
2. Business Contracts 

TCPA Consent Disclosure

A TCPA Consent Disclosure informs individuals about their rights under TCPA and the terms under which they agree to receive marketing messages. 

This document might be part of your privacy policy and should be shared when you first communicate with your customers.

Drafting TCPA Consent Disclosure:

• Clearly explain the purpose of consent and how their information will be used.
• Ensure the language is simple and easy to understand.
• Include details on how users can opt-out of receiving messages.
• Highlight the legal rights of the consumers under TCPA.

It’s advisable to seek the help of legal counsel to draft this document accurately.

Business Contracts

Business contracts are agreements with business owners who will buy leads from you. These contracts should outline the terms and conditions of your lead generation services, focusing on TCPA compliance.

Here are some clauses (relevant to TCPA lead generation) that you should be mentioning in your legal contract with the business owner to whom you’ll sell leads:

1. Lead Quality and Delivery: Specify the criteria for lead quality and the methods for delivering leads to the business owner.
2. Confidentiality and Data Protection: Include clauses that you will maintain the confidentiality of the business owner’s data and adhere to TCPA and other relevant data protection regulations.
3. Compensation Structure: Outline how much you will charge for a lead and what the pricing model would be. When providing price breakdown per lead, you might want to mention TCPA compliance costs.
4. Warranty and Liability: Clearly outline both parties’ responsibilities and limitations to shield the lead generator from potential legal liabilities. But remember, you cannot exempt yourself from TCPA concerns arising from any lead data or shift the liability to the business owner. That’s what Python Leads (LLC) tried to do with FED. The court ruled this as a fraudulent activity and allowed pursuing a case against individual owners of Python Leads. 
5. Governing Law and Jurisdiction: Clearly specify the applicable laws and jurisdiction concerning TCPA compliance, ensuring legal disputes related to TCPA are resolved appropriately.

You also want to be very clear on where the leads are coming from. For these, do include clauses relevant to the following in your contract: 

1.  Specify Allowed Lead Sources: The contract should clearly state which lead generation channels and sources are permitted, such as online advertising, email marketing, content marketing, etc. This helps avoid disputes over the legitimacy of leads.
2.  Prohibit Certain Lead Sources: Conversely, the contract should prohibit the use of certain lead sources that are considered unethical or illegal, such as purchased email lists, scraping websites, or misleading advertising. This protects both parties.
3.  Require Transparency: The lead generation provider should be required to disclose the specific sources of leads, including the websites, campaigns, and channels used. This transparency allows the client to audit lead quality and origin.
4.  Allow Lead Auditing: The contract should give the client the right to audit lead sources and quality, either directly or through a third party. This ensures the lead provider is adhering to the agreed terms.

Incorporating these lead source requirements into your lead generation agreement ensures clarity on acceptable practices, compliance obligations, and quality standards. This builds trust and mitigates risk in the partnership.

You can explore other clauses to include in a lead generation contract here. 

How can business owners ensure 100% TCPA compliance?

To validate a lead gen agency’s claim of 100% TCPA compliance, buyers of leads need to have internal verification processes set up. 

Here are a few examples of what you can do:

• Request certificates or reports from compliance verification services like Jornaya or TrustedForm to confirm lead authenticity.
• Establish protocols for reviewing lead sources, consent mechanisms, and DNC compliance. 
• Conduct regular audits and reviews to validate adherence to TCPA standards before partnering with a lead gen agency..

3. Remove Non-TCPA Compliant Leads 

Once your technical and legal setups are in place, the next step is to weed out non-compliant leads to safeguard your business. 

Apart from partnering with lead validation services like Jornaya and TrustedForm, here are some lead validation processes you can implement:

1. Regularly scrub your contact lists against the National Do Not Call Registry.
   Use automated tools to cross-reference contact lists with the DNC Registry. This ensures that you eliminate numbers of individuals who have opted out of telemarketing calls.
2. Scrutinize the methods used to obtain consent from leads. Make sure they meet TCPA standards by examining opt-in procedures and consent forms. For example, analyze the clarity of language used in opt-in forms and assess whether explicit consent was obtained before contacting leads.
3. Conduct thorough audits of lead sources to verify compliance. Investigate the practices of lead generation partners to ensure they align with TCPA guidelines. For example, review documentation provided by lead gen agencies to confirm 100% adherence to compliance standards.
4. Continuously monitor and review lead generation activities. Regularly assess lead quality and compliance to identify and address any potential issues promptly. Utilize analytics tools to track lead sources and conversion rates, identifying trends and patterns that may indicate non-compliance.

I know right…

Simplify Compliance – Generate 100% Secure Leads

Keeping up with the ever-changing TCPA landscape can be a constant headache. 

Manually tracking updates, ensuring compliance across different states, and managing opt-outs takes a significant chunk of time. 

And this is why you need to be smart with your tech stack as a lead generator.

Choose software that combines all TCPA-related functionalities under one roof. Generating thousands of leads? Imagine the wasted time switching between apps, compromising attention to detail, or needing a huge dedicated team just for TCPA – cutting down the money you take home.

LeadsHook, a top-ranking lead generation software, simplifies your life. 

Our secure platform automates TCPA lead generation, freeing you to focus on what truly matters: generating high-quality leads.

Start growing, risk-free. Sign up for your FREE 14-day trial of LeadsHook today and experience the power of effortless, TCPA-friendly lead generation!

FAQs

What are the regulatory requirements for TCPA?

The TCPA protects consumers from unwanted calls and texts. To follow these rules, businesses need:

• Permission: Get a customer’s clear “yes” before contacting them.
• Do Not Call Lists: Respect customer requests to not be contacted.
• Timing: Call within specific hours.
• Clear Info: Be upfront about who you are and why you’re calling.
• Records: Keep track of permissions and opt-outs.

How do the TCPA 2024 updates impact lead generation methods such as telesales, cold calling, mailers, and Facebook leads?

The recent changes focus on robocalls and robotexts. You’ll need prior consent before using these automated methods for lead generation. However, traditional mailers and Facebook lead generation, which don’t rely on robocalls or robo texts, shouldn’t be directly impacted by these updates.

What is a major feature of TCPA compliant dialing?

You need to display your actual business name and phone number when calling. This lets recipients easily identify you and contact you back if needed.

Does TCPA apply to emails?

No, the TCPA focuses on phone calls, texts, and voicemails. Emails are covered by the CAN-SPAM Act.