Two leading lead generators misled millions seeking comprehensive health insurance, says FTC
Companies falsely promised ACA-compliant coverage, bombarded consumers with robocalls
Settlements include strong consumer protections and restitution for harmed individuals
Two of the nation’s top lead generation firms—Assurance IQ, LLC and MediaAlpha, Inc.—have agreed to pay a combined $145 million to settle Federal Trade Commission charges that they deceived millions of Americans looking for legitimate health insurance coverage. In two separate complaints announced Thursday, the FTC alleged both companies exploited consumer trust with misleading marketing tactics, fake government affiliations, and relentless telemarketing campaigns.
“Coherently and systematically addressing unlawful lead generation is a priority for the FTC,” said Christopher Mufarrige, Director of the Bureau of Consumer Protection. “That’s especially so in connection to health insurance, one of the most expensive and important products consumers buy to protect themselves and their families.”
Assurance IQ: $100 million penalty
Seattle-based Assurance IQ, run by Michael Rowell and Michael Paulus, used aggressive telemarketing campaigns to sell short-term medical and limited-benefit health plans bundled with supplemental products like discount vision or telemedicine services. According to the FTC, Assurance falsely claimed that the plans provided comprehensive coverage—including for preexisting conditions—and gave access to provider networks that would reduce costs.
Worse still, many consumers were charged without consent, a violation of the Telemarketing Sales Rule (TSR), the FTC said. Assurance also misrepresented plan costs and benefits, often implying the products were compliant with the Affordable Care Act.
Under the proposed court order filed in U.S. District Court in Seattle, Assurance is required to:
Pay $100 million, which will go toward refunds for consumers
Cease making deceptive claims about health plan coverage, costs, and government compliance
Secure informed consent before charging any consumer
Provide evidence-based claims and clear disclosures in all future health plan marketing
MediaAlpha: $45 million penalty
Los Angeles-based MediaAlpha, Inc., which includes its QuoteLab subsidiary, ran a sprawling operation that collected and sold over 119 million consumer leads in 2024 alone. The FTC’s complaint details how MediaAlpha used misleading websites—such as ObamacarePlans.com and GovernmentHealthInsurance.com—and hired actors and even a doctor to promote a fabricated “Health Insurance Give Back Program.”
In reality, consumers were often lured into sharing personal information under false pretenses and then bombarded with robocalls and telemarketing, sometimes in violation of the National Do Not Call Registry. Many of the calls promoted plans that lacked the affordability and coverage initially promised.
The FTC’s order against MediaAlpha includes:
A $45 million settlement to fund consumer redress
A ban on deceptive advertising and false government affiliation
Mandatory disclosures on all future health-related sites that they are not government-backed
A requirement to forfeit deceptive domains and secure informed consent before collecting or selling personal data
A crackdown on deceptive lead generation
Both actions underscore the FTC’s growing focus on lead generation firms and their outsized influence in shaping consumer choices—especially in critical sectors like health insurance. Mufarrige noted that ensuring truthful information about coverage options is “not just about fairness, but about protecting consumers’ health and finances.”
The FTC voted unanimously to approve both settlements, which aim to serve as a deterrent to deceptive practices across the marketing industry.