On October 29, 2026, Federal Trade Commission staff sent warning letters to 25 companies that market healthcare plans or generate sales leads for them. The agency expects to send additional letters on a rolling basis.[i] The letters do not allege any wrongdoing. However, they notify each recipient that four categories of claims are likely to violate laws enforced by the FTC. Any company that advertises Affordable Care Act Marketplace coverage, limited indemnity plans, or medical discount programs, or sells leads for these products, should audit its advertising during the current open enrollment season.
What the FTC Announced
The FTC is sending letters to companies that market or advertise Affordable Care Act Marketplace health insurance and other healthcare products, including limited indemnity plans and medical discount programs. Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, situated the initiative within the context of rising healthcare costs: “Today’s letters remind companies that open enrollment is not an invitation to misrepresent what their plans actually cover.”[ii]
Four Claims the FTC Flagged
Based on information collected by FTC staff and the agency’s enforcement experience, the following types of claims may violate the law:[iii]
- Misrepresenting the benefits or limitations of a healthcare plan, including any insurance benefits.
- Misrepresenting a healthcare plan as major or comprehensive medical health insurance, or as its equivalent, when it is not.
- Misrepresenting the costs associated with a healthcare plan.
- Falsely claiming that consumers who enroll will receive free offers, cash rewards, rebates, or other incentives.
What the Letters Say
The letter[iv] cites Section 5(a) of the FTC Act, which prohibits deceptive or unfair acts or practices in commerce.[v] It also extends beyond advertising copy. The letter addresses unsolicited telemarketing calls, including robocalls and calls to numbers listed on the National Do Not Call Registry, which the Telemarketing Sales Rule restricts.[vi] The letter addresses the impersonation of government agencies, including the Department of Health and Human Services, and insurance carriers, as well as false claims of affiliation or endorsement.
The letter establishes no deadline and does not request a written response. It asks each recipient to conduct a comprehensive review of its marketing practices, including paid advertisements, websites, social media, and third-party affiliates and sales agents. It also outlines the potential consequences: a federal court injunction halting business operations, civil penalties of up to $53,088 per violation, and possible consumer refunds. The letter further notes that each unlawful call, advertisement, or misrepresentation may constitute a separate violation.[vii]
Prior Cases Cited by the FTC
The letters refer to earlier FTC actions involving marketers and lead generators in this market: Top Healthcare Options Insurance Agency (2026), Innovative Partners (2026), Assurance IQ and MediaAlpha (2025), Simple Health Plans (2024), Benefytt Technologies (2022), Partners in Healthcare (2015), and Consumer Health Benefits (2010). Lead generators are included in the letter alongside plan sellers. A reasonable interpretation is that the FTC looks beyond the carrier to the businesses that shape consumers’ initial impressions of a plan, and that companies purchasing leads should anticipate similar scrutiny of their upstream sources.
Looking Ahead
The letters do not impose penalties in and of themselves; rather, they provide recipients with something enforcement actions rarely offer: notice and time. Companies that use the open-enrollment period to correct their advertising will enter 2027 with a defensible record and stronger customer relationships. Consumers who understand what a plan covers before enrolling are also less likely to dispute charges later. The FTC has stated that it will continue monitoring this market, so the prudent course is to complete the audit before the next round of letters is issued.[viii]
If your company markets healthcare plans, generates leads for them, or buys those leads, the compliance team at Troutman Amin welcomes the chance to review your advertising, scripts, and affiliate agreements against the issues the FTC raised. Please reach out to us to discuss how we may assist.
Disclaimer: This article provides general informational and educational content only and does not constitute formal legal advice. The information contained herein may not reflect the most current legal developments, verdicts, or settlements. Reading this article, transmitting information through related platforms, or contacting the author does not create an attorney-client relationship. Readers should not act or refrain from acting based on any information in this article without seeking professional legal counsel tailored to their specific jurisdiction, facts, and circumstances. The author expressly disclaims all liability with respect to act.
[i]Federal Trade Commission. “FTC Staff Warn Marketers of Healthcare Plans and Lead Generators Not to Deceive Consumers about the Terms of the Advertised Plans.” Federal Trade Commission, 29 Oct. 2026 (press release), https://www.ftc.gov/news-events/news/press-releases/2026/10/ftc-staff-warn-marketers-healthcare-plans-lead-generators-not-deceive-consumers-about-terms. Accessed October 29, 2026.
[ii]Federal Trade Commission, “FTC Staff Warn Marketers.”
[iii]Federal Trade Commission, “FTC Staff Warn Marketers.”
[iv]Federal Trade Commission. “Deceptive or Unfair Acts or Practices Relating to the Marketing, Advertising, and Lead Generation of Healthcare-Related Products, Including Healthcare Plans.” Warning letter template. Federal Trade Commission, https://www.ftc.gov/system/files/ftc_gov/pdf/healthcare-warning-letter-template.pdf. Accessed October 29, 2026.
[v]Federal Trade Commission Act § 5(a), 15 U.S.C. § 45(a). Legal Information Institute, Cornell Law School, https://www.law.cornell.edu/uscode/text/15/45. Accessed October 29, 2026.
[vi]Telemarketing Sales Rule, 16 C.F.R. § 310.4(b)(1). Electronic Code of Federal Regulations, https://www.ecfr.gov/current/title-16/part-310. Accessed October 29, 2026.
[vii]Federal Trade Commission, “Deceptive or Unfair Acts or Practices.”
[viii]Federal Trade Commission, “FTC Staff Warn Marketers.”
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