CAP explains that lead generation (the use of marketing techniques to attract prospective consumers whose information is then passed to other companies offering products to similar types of consumers) is a common and legitimate way for companies to communicate with the right kind of customer, provided these ads comply with the CAP Code.

CAP warns advertisers that whoever sees a relevant ad needs to know who they are replying to, and whether that company is using the information provided to filter out potential customers on behalf of another advertiser. Sometimes that can be clear from the context, CAP says, but sometimes it will be necessary to include more explicit messages so consumers can be clear on what is going on and who they are dealing with. CAP reminds advertisers that the ASA regularly finds ads in breach of the Code where it was not clear that this was a lead generation ad, and lead generators and the companies they are working for can be considered jointly responsible where ads are not recognisable.

CAP advises advertisers that the clearer the message, the less likelihood there will be for misunderstanding. Under CAP Code rule 2.3, marketing communications “must not falsely claim or imply that the marketer is acting as a consumer or for purposes outside its trade, business, craft or profession”. In other words, lead generators must be up front and ensure that the ad does not give the impression that respondents are making direct contact with a company that provides the product or service in question that the lead generator is being asked to provide potential customers for.

CAP’s main advice is to stick to the principles of being upfront about you are doing and not claiming to be providing things that you are not or cannot provide. To read the advice note in full, click here.