Is your lead provider in regulatory danger?
In this industry, it’s vital to consider the history of your leads provider, and whether or not they are subject to regulatory enforcement actions, like an enforcement action or consent order. You might think that your service provider’s issues don’t affect you, but that’s not always the case. The truth is that consent orders often have an ongoing reporting requirement that can drag you into unwanted regulatory crosshairs.
Enforcement actions often require the defendant to disclose the terms of the order to employees, agents and even to other business relationships. Take a look at the FTC’s proposed order against Google and YouTube for violating COPPA:
For five (5) years after entry of this Order, each Defendant must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who have supervisory responsibilities relating to the subject matter of Sections I and II of this Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting.
And here’s even more dramatic language from the FTC’s injunction against an EDU lead generator:
[The Defendant must], as a condition of doing business with any Lead Aggregator: (a) provide each such Lead Aggregator a copy of this Order within 7 days of entry of this Order; and (b) either (i) obtain from each such Lead Aggregator a signed and dated statement acknowledging receipt of this Order and expressly agreeing to comply with this Order within 30 days of entry of this Order or (ii) cease purchasing Covered Information from such Lead Aggregator until such time as the Lead Aggregator has provided a signed and dated statement acknowledging receipt of this Order and expressly agreeing to comply with this Order
When a company has been issued an enforcement action from the FTC, CFPB, California Department of Business Oversight, or other government regulator, it may require them to disclose a wide range of information, including which companies the provider works with.
If your company is included in one of these reports, it can put you on the radar for regulators and potentially cause unnecessary headaches for your business. Be careful when working with vendors, suppliers or others who are under strict compliance and reporting obligations from federal or state regulators. You can still do business with a company that has been sanctioned by a regulator, but you should go into that relationship with eyes wide open. As we approach the final and busiest quarter of the year, it’s of vital importance to maintain high standards of compliance to avoid these types of situations.
One of the pillars of LeadsMarket’s business is our industry-leading compliance team. We pride ourselves on being able to serve our partners–both publishers and lenders–with a compliant lead generation processes that deliver results and doesn’t violate federal or state regulations.
At LeadsMarket, we often say that our success is dependent upon the success of our partners. We operate in a compliant manner because it benefits everyone we work with as much as it benefits ourselves. You and your company can rest easy when you work with us.