BREAKING NEWS: FCC’s 1:1 Consent Rule Overturned
Court Invalidates FCC's 2023 1:1 Consent Mandate
In a landmark decision in Insurance Marketing Coalition Limited v. FCC, the United States Court of Appeals for the Eleventh Circuit has struck down key components of a 2023 Federal Communications Commission's (FCC) Order, including the controversial "one-to-one consent" rule governing robocalls and robotexts. The rule was poised to go into effect next week. The court found that the FCC overstepped its statutory authority by redefining "prior express consent" in a manner inconsistent with the language and intent of the Telephone Consumer Protection Act (TCPA).
Changes to the 2023 Order
The court's decision specifically invalidated the following restrictions imposed by the 2023 Order:
One-to-One Consent: This rule mandated that businesses could only obtain consent from consumers for telemarketing or advertising robocalls individually, prohibiting blanket consent for calls from multiple entities.
Logically-and-Topically-Related Restriction: This restriction limited the validity of robocall consent to instances where the call's content was directly related to the specific interaction that prompted the consent. This significantly narrowed the scope of permissible robocalls, even when consumers had explicitly agreed to receive them.
Impact on Businesses
This ruling is a significant win for businesses using robocalls and robotexts for telemarketing and advertising purposes. It provides greater flexibility in obtaining and using consumer consent, potentially creating new opportunities for marketing and communication.
Industry Response
David Carter, President & CEO of the Ecommerce Innovation Alliance, praised the court's decision, stating:
"The Eleventh Circuit's decision to vacate the FCC's 1:1 consent rule is welcome news for ecommerce companies who lawfully obtain consent to send marketing text messages. Since the TCPA was first adopted in 1991, consumers have been able to willingly consent to receive text messages from multiple entities at the same time. This is common practice, for example, when two or more brands join forces to provide consumers with the opportunity to enter a sweepstakes. We agree with the Eleventh Circuit's conclusion that the FCC exceeded its jurisdiction by reinterpreting 'prior express written consent' in a manner that would have unnecessarily hindered the ability of brands to collect consent."
Stay Informed
The legal landscape surrounding the TCPA is constantly evolving. It is crucial to stay informed about updates and analysis regarding this important decision and its potential implications for your business.
