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Lead Gen Firms Under Fire Over 'Win a Free iPod!' Promo Strategies


It's not that easy, folks

ValueClick isn't the only lead gen company in the doghouse.

Stock Analyst Jordan Rohan, who spoke at the recent OMMA Conference in New York, said at least one other lead generation service is settling with the FTC. Meanwhile, advertisers that use such services are being subpoenaed.

Lead gen companies are increasingly subject to investigation over their "promotional strategy practices," according to ClickZ. One example includes online campaigns that start out with "Win a free iPod!" in an effort to grab personally-identifiable information and encourage people to share the information of others.

New regulations in the works, like putting an end to incentive-based marketing, could render lead-gen companies obsolete.

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