Lead Provider Due Diligence, Don’t Forget Consumer Protection

If you are going to outsource your online marketing to a lead provider–put consumer protection at the top of your due diligence checklist. Protecting consumers online is a FTC hot button and more than one lead provider and marketing agency has felt their sting. Did you know the lead generation practices of these lead providers can bring risk to your business?

If you are marketing online, consumer protection needs to be top of mind. Most marketers understand  and comply with appropriate best practices and regulations. It is just smart business and delivers a better customer experience. However, don’t forget to use the same level of due diligence in reviewing their Internet lead providers.

Here are important points of review to consider in vetting a new lead provider:

1. Do they use third party lead generation services or affiliates? If so, what is their compliance and due diligence process?

Most lead providers will purchase some quantity of traffic or leads from third-party sources. If it was your marketing department you would perform consumer protection due diligence against vendors–make sure your lead provider is doing the same with their vendors.

2. Ask to review an example of their standard affiliate, buyer, and vendor agreements (as applicable)?

This is the quickest way for you or your legal team to evaluate any legal exposure to your lead providers providers vendor practices. It is also a great way for you, as their lead generation partner, to strengthen the relationship through collaboration.

3. Do they have a compliance education program for their marketing department and/or third-party lead generation sources?

This is really a simple effort. Sending regular and brief consumer protection notices and tips out to their network is a prudent move. This deepens partnerships and strengthens the network’s overall compliance.

4. Do they have a quality control process? Does it evaluate the validity and integrity of generated leads and marketing sources?

This is a big differentiator. Some lead providers have a proprietary process for quality controlling leads. However, if they don’t have the technical capability or expertise there are great services available, like TargusInfo or eBureau.

5. Ask to review sample landing pages, ad creative, telemarketing scripts, and privacy policies used during the lead generation process?

Many lead providers or marketing agencies view these items as trade secrets. Assure them you do not need to see placement or the entire portfolio–just indicative samples. After all, you are outsourcing your marketing department to them–exert your rights of review.

Invariably you will be carrying some risk for their lead generation practices. So, unless they are going to contractually indemnify you against these risks–do some review of these items.

6. What is their policy for dealing with marketing sources that are found to be out of compliance with relevant consumer protection laws?

Of course, all of this is useless if they don’t enforce their policies. It is a fair question to ask a lead provider what they do in the case of consumer protection compliance failure.

Get Educated on Consumer Protection

If you have not already education yourself on consumer protection laws and regulations, it is time to do so. Learn not only what the laws are, but what consumers expect from their online inquiries. Here are some smart places to look for more information:

* FTC: Consumer Protection Information
* FTC: Online Marketing Guidelines
* IAB: Consumer Privacy Standards

Tagged as: Advertising and Marketing, Federal Trade Commission, Interactive Advertising Bureau, Lead Generation, marketing