On January 24, the FCC issued an order postponing the effective date of its one-to-one consent rule. The rule, which would have required companies to obtain individual consent for each marketing partner before sharing customer data, was originally slated to go into effect on January 27, 2025. However, the FCC’s order has put the rule on hold until at least January 26, 2026, unless a court ruling dictates an earlier implementation date.

The delay stems from a legal challenge filed in the Eleventh Circuit Court of Appeals. (previously discussed here). The lawsuit argues that the FCC exceeded its statutory authority by requiring individual consent, and that this interpretation conflicts with established understandings of “prior express consent.” The challenge also alleges that the FCC did not adequately consider the economic impact of the rule. Additionally, plaintiffs argued that the rule would “significantly increase the cost of compliance” and “disrupt the insurance marketplace.”

The FCC’s one-to-one consent rule is intended to protect consumers from unwanted telemarketing calls. However, industry critics assert that the rule is unnecessary and would place undue burden on businesses. The Eleventh Circuit Court of Appeals is expected to rule on this challenge in the coming months.

Putting It Into Practice: This delay, as well as the upcoming Eleventh Circuit decision, could significantly impact how financial institutions that rely on telemarketing and data sharing for marketing purposes obtain and manage customer consent. We will continue to monitor this and other one-to-one consent rule litigation for further developments.

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