Significant Changes Coming to the Telemarketing Industry due to the FCC's One-to-One Express Written Consent Rule

The FCC's one-to-one express written consent rule, taking effect in January 2025, introduces stricter requirements for telemarketers to ensure that consumers explicitly agree to receive calls or texts. The rule aims to enhance consumer protection by reducing unwanted calls and ensuring transparency in telemarketing communications. It represents a major shift toward stricter compliance in the industry.

The rule will significantly impact telemarketers by enforcing stricter consent requirements for contacting consumers. This article reviews the following industry impacts due to the ruling: Key Changes for the Telemarketing Industry, Operational Adjustments Telemarketers, Telemarketing Industry Challenges, Regulatory Compliance Risks for Telemarketers, Opportunities for the Telemarketing Industry, and Long-Term Implications for Telemarketing.

Key Changes for the Telemarketing Industry due to the 1-to-1 Ruling

Enhanced Focus on Compliance due to the 1-to-1 Ruling

Telemarketers must obtain specific, documented consent for every consumer they contact. Consent must clearly outline that the consumer agrees to receive telemarketing calls or texts, including the use of autodialers or prerecorded messages. Record-keeping requirements will likely increase, as companies must retain proof of consent for auditing and compliance purposes.

Improved Transparency due to the 1-to-1 Ruling

The rule will require clearer disclosures about the nature of calls and the consent process. Consumers must understand the types of communications they are consenting to receive, including what organizations will be calling them and whether third parties are involved.

Shift Toward Quality Over Quantity

Telemarketers may need to focus on smaller, highly-targeted lead lists of individuals who have explicitly consented, reducing reliance on broad-based cold calling. Lead aggregation practices will be under greater scrutiny to ensure leads have the required consent.

Increased Consumer Trust due to the 1-to-1 Ruling

Stricter consent requirements could improve consumer trust in telemarketing, as individuals are less likely to receive unwanted or deceptive calls. Legitimate telemarketers that comply with the rules can differentiate themselves from bad actors in the industry.

1-to-1 Ruling will Reduce the Number of Spam and Robocalls

Adding to other measures already taken by regulatory bodies, the rule is expected to further reduce the number spam and robocalls by making it harder for telemarketers to bypass consumer consent requirements. It is anticipated that regulatory and law enforcement agency actions, including potential penalties, may create a higher barrier to entry for unethical and/or non-compliant telemarketers.

Operational Adjustments Telemarketers due to the 1-to-1 Ruling

1-to-1 Ruling will Drive Technological Investments

The industry ecosystem must implement or upgrade systems for tracking consent, such as customer relationship management (CRM) tools with compliance features. The industry must also incorporate consent verification processes to ensure leads meet the FCC’s requirements.

Changes to Lead Generation Practices due to the 1-to-1 Ruling

Companies must verify that lead sources provide proper documentation of consumer consent. They may need to establish direct channels to obtain consent rather than relying on third-party lead generators.

Increased Legal and Compliance Costs due to the 1-to-1 Ruling

Businesses may face higher costs for legal advice and compliance audits to ensure adherence to the new rules. Non-compliance could result in lawsuits or significant fines under the Telephone Consumer Protection Act (TCPA).

1-to-1 Ruling will facilitate the Need for Training and Education

Telemarketing teams must be trained on the new rules to avoid accidental violations.Sales scripts and operational workflows will need updates to reflect the stricter consent requirements.

Telemarketing Industry Challenges due to the 1-to-1 Ruling

Lead Availability will be Reduced due to the 1-to-1 Ruling

The ruling will likely lead to a significant decrease in the availability of compliant leads, as not all sources may meet the new standards. This will also likely lead to higher costs for acquiring leads that meet the one-to-one consent rule. However, remaining (compliant) leads will be of higher quality, leading to the opportunity for improved call answer rates.

1-to-1 Ruling will Generally Lead to Smaller Call Volumes

Companies will likely reduce call volumes to avoid contacting individuals without proper consent. This could impact productivity and revenue for businesses relying on high-volume telemarketing. However, it will also reduce the cost for telemarketing as the number of wasted calls will be reduced.

Regulatory Compliance Risks for Telemarketers due to the 1-to-1 Ruling

The FCC and private litigants may aggressively enforce the new rules, leading to heightened legal risks for non-compliance. Telemarketers may be required to prove that they have verified consent prior to making calls. The ruling indicates that consent must be provable prior to making contact with consumers.

Opportunities for the Telemarketing Industry due to the 1-to-1 Ruling

Market Differentiation due to the 1-to-1 Ruling

Compliant companies can position themselves as ethical and trustworthy, gaining a competitive edge. Opportunities may arise to educate consumers about their consent rights, fostering better relationships.

Innovation in Marketing due to the 1-to-1 Ruling

Companies may turn to alternative marketing methods such as email, social media, or permission-based text messaging. Investment in AI-driven lead qualification systems will likely accelerate, which could improve targeting and reduce overall lifecycle costs.

Long-Term Implications for Telemarketing due to the 1-to-1 Ruling

There are many implications of the 1-to-1 ruling, but here are perhaps two of the biggest areas to consider:

• Reputation Boost for Telemarketing: By reducing unwanted calls, the industry could regain some credibility with consumers. The sigma of the telemarketing profession will be lifted as consent becomes table stakes.
• Increased Value for Telemarketing: The industry will continue to evolve from a high-volume transaction-oriented business to a lower volume, but higher value, engagement model.
• Enhanced Consumer Protection: The rule aligns with broader regulatory trends prioritizing consumer privacy and choice. Consent and preference management will play heavily into this trend.

In summary, the FCC’s new one-to-one express written consent rule will require a shift toward more transparent, targeted, and compliant practices in the telemarketing industry. Companies that adapt effectively will be better positioned to succeed in the evolving regulatory environment.