BUY LEADS FACE LAWSUIT?: Smartmatch Insurance Agency Stuck In TCPA Class Action After Buying Leads from Major Vendors (NOT R.E.A.C.H. Members)

So after TrackDrive’s Rich Nolan was sentenced to two years in prison a lot of companies have started to wise up and join R.E.A.C.H.

Lots of folks in trouble around the industry right now– but R.E.A.C.H. members are all doing great, legal, and profitable things!

In another sad (avoidable?) TCPA tale involving non-R.E.A.C.H. members the folks at Smartmatch Insurance Agency are stuck in a TCPA class action after buying leads from two large vendors who do NOT meet the R.E.A.C.H. standards.

Sigh.

In Cocciolillo v. Smartmatch Insurance Agency, LLC, 2026 WL 498349 (W.D. Mo. Feb. 23, 2026) the court refused to dismiss the suit alleging calls had been made on behalf of Smartmatch by two well known lead vendors.

Per the ruling:

Upon review of the record and the parties’ arguments, the Court finds that Plaintiff has adequately pled actual authority. Plaintiff
alleges that pursuant to certain contracts, [lead providers] agreed to provide Defendant with consumer data or transfer leads
that met requirements set by Defendant. Plaintiff alleges that “Defendant retained the right, and exercised the right, to approve
creatives, scripts used by [lead providers’] telemarketers, and the forms used by [lead providers] to obtain leads to be sent to
Defendant.” (Doc. #47, ¶ 29.) Plaintiff alleges the “agreements between Defendant and [lead providers], required Defendant’s
approval of creative (which included websites), scripts and forms.” (Doc. #47, ¶ 30.)

Defendant allegedly “knew and approved of [lead providers] using vague and fictious names during the unsolicited phone
calls to avoid their illegal campaign being uncovered.” (Doc. #47, ¶ 43.) Defendant allegedly “knew and approved of [lead providers] spoofing telephone numbers to place calls to consumers so that the calls could not be easily traced or attributed to
any company.” (Doc. #47, ¶ 44.) Defendant allegedly “listened to the telephone call recordings placed by [lead providers] and
provided feedback to [lead providers].” (Doc. #47, ¶ 49.) Defendant allegedly “ha[d] the right to audit, and exercised its right
to audit, calls placed by [lead providers], pursuant to its agreements with [lead providers].” (Doc. #47, ¶ 50.

So let’s go through what happened here:

1. Contracts gave Smartmatch the ability to approve webforms used by the lead vendors;
2. Smartmatch knew lead vendors used vague and fake names;
3. Smartmatch knew lead providers would use spoofed numbers; and
4. Smartmatch listened to calls and could audit them for quality.

These facts were enough in the court’s view to hold it liable for the calls made by the lead vendors.

Can’t say it enough times– if you are buying leads you are buying risk. So you should be working with people you can trust– like R.E.A.C.H. members.

That’s it.

And if you want to meet a BUNCH of trustworthy people be sure to attend Law Conference of Champions in May! This is where the best, highest quality and compliance-oriented lead buyers and sellers gather to learn about the law– and each other’s products and services!

Quote Velocity’s Manny Zuccarelli will be there. Will you?

You cannot miss it. PRICES JUMP MARCH 1, 2026!! So get tickets now!

Chat soon.