A Federal Trade Commission (FTC) settlement with a lead buyer highlights the
potential pitfalls with using lists from lead generators without
considering how the lists were compiled or the requirements under
the Telemarketing Sales Rule (TSR). For lead generators, the
settlement also provides a useful reminder of common hazards to
avoid when developing leads.
The FTC, with the assistance of the U.S. Department of Justice,
has settled a complaint against a home security company alleging
that it illegally called millions of consumers on the FTC's
National Do Not Call (DNC) Registry to pitch home security
systems.
According to the FTC, the lead generators that supplied the
marketing list represented to the lead buyer that the lead
generators had obtained consumers' prior express consent to
receive telemarketing calls about a home security system, but in
reality, they had not. Instead, the FTC's complaint
alleged that the leads were obtained by illegal means
