On September 15, the Federal Trade Commission published a
staff paper providing its perspective on the lead generation
business. Although the FTC recognized some of the advantages
of lead generation, the paper was a clear warning to
"unscrupulous actors in the lead generation industry" of
potential consequences. The staff paper signals that the FTC
is focusing on the industry, and in particular on the quality of
disclosures to consumers and use of information collected by lead
generators from consumers.
Lead generation is the process of identifying and cultivating
individual consumers who are potentially interested in purchasing a
product or service. As consumers increasingly research
and shop for products online, lead generation has become more
sophisticated, rapid, and data-intensive, said the FTC. While
this can benefit interested consumers by connecting them with
merchants quickly and efficiently and can have positive benefits on
price and competition, the
