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MediaAlpha’s Business Practices Targeted In FTC Probe
Lead generation firm facing potential penalties for how it markets and uses customer data.
March 8, 2023
Six days before filing its annual report Media Alpha Inc. (MAX), a customer acquisition platform serving the insurance industry, learned its business practices are under regulatory scrutiny. The company received a civil investigative demand (CID) on February 21, 2023 from the Federal Trade Commission (FTC) regarding compliance with the FTC Act and the Telemarketing Sales Rule, as they relate to:
“...the advertising, marketing, promotion, offering for sale, or sale of healthcare-related products, the collection, sale, transfer or provision to third parties of consumer data, telemarketing practices, and/or consumer privacy or data security.”
MediaAlph’s sales fell 28% and the number of paid leads generated declined 8% in 2022.
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