FTC’s MediaAlpha Case Sends Warning: Lead Generation Risks Go Beyond Healthcare

The MediaAlpha complaint filed this week by the FTC has some interesting takeaways and not only for those lead generators or lead buyers in the healthcare space. The FTC clarified some positions on various lead generation practices that many in the industry already suspected to be problematic. Similar to the Healthline complaint by the CCPA, there are definitely some lessons to be learned.

1. Disclosures need to be clear and conspicuous.

The FTC alleges that MediaAlpha relied on vague, buried fine print to claim consent, covering thousands of undisclosed partners, and sold leads to be robocalled even when numbers were on the National Do Not Call Registry. The FTC actually charged MediaAlpha with violations of the Telemarketing Sales Rule ("TSR"). However, upon reviewing the actual charges these claims lack sufficient detail in HOW MediaAlpha actually violated it. The charges are very cursory in nature.

While the claims in the complaint may be cursory, one thing that is clear is that the FTC is not a fan of fine print disclosures that are essentially "a block of light fine print". The takeaway here is consent language needs to be clear and conspicuous and written in such a way that the consumer knows who will be calling them.

2. Review the full lead path for transparency

The FTC alleges MediaAlpha's lead partners were generating leads through deceptive funnels, fake government affiliations, and misleading ad campaigns.

Without seeing the full path, a lead buyer could unknowingly purchase noncompliant leads. Lead buyers should require vendors to provide the complete lead generation chain--URLs, call recordings, consent language, timestamps--so they can verify where and how the consumer's information was collected. Additionally, any material changes to the lead path must be sent for review.

This case is a good reminder that when you are buying leads what you are actually buying is the lead generator's compliance processes.

3. Use consumer sentiment as a guide

The complaint alleges that consumers were vocal in their complaints. Many consumers said they never agreed to be contacted, expected instant quotes online, and were instead bombarded with calls. Comments can give real world feedback on the user experience such as this actual feedback MediaAlpha received: "“Your website is misleading, I was under the misconception that I would be provided with quotes online. I never would have imagined I would be bombarded with phone calls nonstop.”

By using consumer comments as a guide, a lead buyer or generator can see where they may be potential misalignment between the designed user experience and the actual user experience. Again, it goes back to "tell the consumer what you are going to do and then do it."

4. The use of fake "programs" or misrepresenting government affiliation will be a problem

The complaint made several allegations that MediaAlpha and its affiliates were misrepresenting their government affiliations. Additionally, the parties had created video ads where "actors have touted a non-existent 'Health Insurance Gives Back Program'". Similar ads features "a video of an actor pretending to be a consumer holding up a fake approval letter he supposedly received after contacting Defendants, which incorporates a fake insurance card and notice about fake 'cash benefits'".

These sorts of ads, touting fake "government programs" or fake checks, are rampant on social media sites. They are used by lead generators for insurance, mortgage, and even legal services. Lead buyers should be aware of how their leads are being generated and insure these sorts of "fake programs" ads are not being used.

Lead buyers should use this complaint to review their lead flows, their lead generator partners, and their customer experience.