FTC Crackdown Hits Lead Sellers With $145M in Settlements
The Federal Trade Commission has made it clear:
“A priority at the FTC is coherently and systematically addressing unlawful lead generation. Businesses should know the FTC will take action when lead generators break the law, engage in unlawful deception, and harm the American people.”
That is the central message from the agency’s August 7, 2025 blog regarding the recent $45 million settlement with MediaAlpha, a major online lead generation company accused of misleading consumers shopping for health insurance.
According to the FTC, MediaAlpha used deceptive advertising to lure consumers into sharing their personal information. The agency alleges that MediaAlpha’s ads on social media, paid search, and other platforms faked a government affiliation and promised online quotes for low-cost, comprehensive health insurance. In reality, the FTC says, the company knew its telemarketing partners rarely offered the coverage described and instead sold products that provided far fewer benefits.
The FTC’s complaint alleges that MediaAlpha’s conduct violated the FTC Act, the Telemarketing Sales Rule, and the Rule on Impersonation of Government and Businesses. By collecting and selling consumers’ contact information under false pretenses, MediaAlpha allegedly exposed consumers to millions of illegal calls and other unlawful sales tactics.
To resolve the allegations, MediaAlpha agreed to settle for $45 million. The company is also permanently prohibited from misrepresenting that its offerings are affiliated with government-approved programs or that its products have benefits it has not verified.
This settlement was part of a larger announcement the same day in which the FTC unveiled two significant enforcement actions totaling $145 million against MediaAlpha and Assurance IQ, LLC. Assurance IQ agreed to pay $100 million to settle allegations that it misrepresented the features and benefits of health insurance plans and billed consumers without express informed consent. Together, the cases reflect the FTC’s increasing focus on deceptive lead generation practices, particularly in the health insurance space, and demonstrate the agency’s willingness to target both the sellers of coverage and the lead brokers that feed them potential customers.
Businesses involved in lead generation can take away several lessons:
Be truthful about your identity, affiliations, and product claims. Misleading consumers about who you are, how their information will be used, or the benefits of your product is illegal.
Vet your partners. If you know, or deliberately avoid knowing, that your partners are violating the Telemarketing Sales Rule, you may be liable for facilitating their misconduct.
Avoid “willful blindness.” The FTC will not excuse a company that ignores obvious red flags about how its leads are being used.
Understand the rules. The FTC Act, the Telemarketing Sales Rule, and the Rule on Impersonation of Government and Businesses all apply to lead generation. Noncompliance can lead to large penalties and restitution orders.
These settlements send a clear signal that the FTC is prioritizing deceptive lead generation as an enforcement target. Health insurance marketing, in particular, is under the microscope. Businesses that collect, sell, or use consumer leads should review their advertising, consent, and partner oversight practices now, before they become the subject of the next enforcement headline.