The internet never forgets. Neither do regulators. At LeadsMarket, we’d rather see publishers keep their profits than lose them to lawsuits or fines.
Compliance isn’t the responsibility of just one person or department — it’s shared by everyone in the organization, from interns to executives. Here’s why:
Case Study 1: Misleading Marketing and a $104 Million Penalty
A major lead generation firm was fined by the FTC for making deceptive “loan matching” claims while indiscriminately selling consumer data. The core issue? Promising the “best rates” while using a bid-based lead distribution system. The result was a major enforcement action, a massive fine, and the business effectively being shutdown (both the company and its owner filed for bankruptcy protection).
Takeaway: Significant misrepresentation — intentional or not — can have serious legal and financial consequences.
Case Study 2: Inadequate Disclosure Practices
Another company faced legal action after obtaining user consent for credit checks through hard-to-read disclaimers. Disclosures buried in fine print (e.g., extremely small font sizes) were deemed insufficient.
Takeaway: Consent should be clear and conspicuous, which means it’s hard (if not impossible) for the consumer to miss. So-called “dark patterns”, which include hidden language, buried fine print, light colors on a light background, etc.) do not meet legal standards.
Best Practices for All Publishers
- Always obtain the consumer’s explicit and informed consent for credit-related activities.
- Do not make any claims that can be proven false, such as “95% approval” or “no credit check.” Ensure all marketing statements are backed by evidence.
- Keep privacy policies up to date and easily accessible to consumers.
Compliance isn’t only about avoiding penalties — it’s about protecting your business, your consumers, and your reputation.
Note: Publishers that work with networks need to understand how their network partners operate. Don’t just copy other websites because (1) that could be copyright infringement, and (2) other websites could be wrong, or not applicable to your situation. If you don’t know whether a network offers “comparisons”, for example, then ask!
Want a compliance checklist or guidance? Contact us.
LeadsMarket helps publishers scale responsibly — with compliance at the core.
