“The rule now requires one-to-one consent from the consumer to the business that will contact them.”

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In Episode 50 of This Week in Local, Localogy Senior Analyst Charles Laughlin talks to Evocalize CEO Matthew Marx about an important decision issued last week by the U.S. Federal Communications Commission that is likely to have reverberations throughout the local digital ecosystem. 

The FCC voted 4-1 to close the “lead generation loophole” by dramatically upping the ante on the level of consent required to use a consumer lead captured, for example, when a consumer searches for a mortgage or insurance policy online. 

Marx believes the ruling will disproportionately impact those industries that were heavily dependent on lead aggregators. 

“I think it’s inevitable to me that the mortgage industry, the real estate industry, will feel it. Also the insurance industry, to some extent the auto industry,” Marx said. “And to some extent the travel industry.”

While Marx does see short-term pain from the ruling, he also sees some silver linings. 

“I feel like consumers over time will begin to trust online lead submission more than they do today,” Marx said. “And that will benefit the ecosystem.”

Ep. 35 Asks if Automation is the Answer with Evocalize’s Matthew Marx

Time Stamps

• • Why did the FCC close the “lead generation loophole”? 1:20
  • What impact will the new regulation have on small businesses? 4:56
  • Which industries will be most impacted by this ruling? 7:51
  • Potenital silver linings to the ruling. 10:45

How Will Ending the “Lead-Generation Loophole” Impact SMBs?

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This Week in Local is Localogy’s weekly podcast featuring engaging conversations on topics important to the local digital ecosystem. The show’s hosts, Localogy’s veteran analysts Mike Boland and Charles Laughlin, have been covering the local digital ecosystem for decades.

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