Lead Generation through Mobile Marketing: Legal and Regulatory Realities

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A recent enforcement action taken by the Federal Trade Commission (“FTC”) to shut down a marketer using text messages highlights the need to be mindful of the law and regulations that govern mobile marketing. On February, 23, 2011, the FTC asked a federal judge to shut down an operation that allegedly blasted consumers with millions of illegal spam text messages. Although the case is many respects a “run of the mill” spam case, what makes this case unique is the services promoted were not those of the sender. Rather, the messages were sent by a lead generator and offered loan modification assistance, debt relief, and other services. The FTC is asking the court to freeze the defendant’s assets with charges that he violated the FTC Act and the CAN-SPAM Act

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