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.