Advertising Law Tool Kit - Tenth Edition | 2022

Venable / 35 • Understand vertical-specific laws. Debt relief services, mortgage assistance relief services, mortgage companies, small-dollar lending, auto service warranties, insurance, health and beauty, education, and other industries are subject to numerous, industry-specific laws and regulations. Marketers in these verticals should understand the applicable law, as should anyone selling leads to those marketers. • Know your leads. Know whom you are buying leads from and whom you are selling them to. Understand how the leads originated and were solicited. Developing qualification programs and standard operating procedures can help mitigate legal risks. • Comply with DNC. Calling a number on the Do Not Call Registry is forbidden unless an established business relationship exists. Whether such a relationship exists may require specific actions by the lead generator. • Be careful with upsells, cross-sells, and advance consent. These areas are favorite targets of regulators and class action plaintiffs. Know the federal and state laws and regulations governing these practices and stay up to date as they evolve. • Establish contractual protections. Make certain written agreements are very clear regarding ownership, exclusivity, payment, terms, and liabilities in the event of a legal dispute or a government investigation/enforcement action. They also should clearly state the nature of the leads and whether they meet the specific requirements for which they are purchased (prior express written consent to text, for example). • Protect and safeguard private information. Understand the promises about personal information made to consumers throughout the lead generation process and abide by those promises. • Watch endorsements and testimonials. Endorsers and marketers may be held liable for statements made by endorsers. Advise endorsers of their disclosure obligations. Monitor endorsements to ensure compliance with FTC guidance and take corrective action if needed.