Compliance vs. Complicity — Custom TCPA & DNC Compliance Programs | PropHog
PropHog · Custom Compliance Solutions

Build The Compliance Posture
Courts Look For.

Your agents market in your name every day. When one of them crosses the line on a call or text, the law doesn't ask what they did — it asks what your organization did to prevent it. We build the documented posture that answers that question: a full risk audit, a custom program, and an owner who shows up in person — for insurance teams of 100 agents or 100,000.

Full risk audit On-site executive engagement Fractional Compliance Officer Documented & defensible
// Compliance Posture Active
From Soft Target
To Hardened & Defensible
ComplicitReactive · no proof
CompliantProactive · documented
1 Risk audit identifies your weakest points
2 Corrective action closes the highest-risk gaps
3 Documented program proves you acted decisively
Posture is a defense — and we help you hold it.
// The One Distinction That Decides Everything
Compliancevs.Complicity
Know The Difference — Because A Court Will
✓ Compliance

A System Built To Prevent

Written prohibitions every agent signs. Mandatory training with timestamped records. Screening tools that are required and used. A vendor-vetting policy. An identifiable person who owns it. When a court asks "what did this company do to prevent this?", you answer with a functioning, documented program — and the violation becomes one agent's failure, not yours.

✕ Complicity

A System That Predictably Produced It

Authority to market in your name, with nothing in writing about how. No training, no tools, no vetting, no records — and commissions accepted from the campaign anyway. To a regulator, the absence of a written prohibition reads as implied permission, and silence reads as a choice. The violation becomes proof of a company-wide failure.

Two companies. The identical agent violation. One contains it to a single agent's mistake and moves on. The other lands in the same ledger as the carriers and agencies that have settled TCPA claims for millions — and a multi-year consent decree. The only variable is which side of this line they were standing on.

// What Inaction Costs

When A Company Fails To Oversee Its Calling, The Bill Is Public Record.

These aren't hypotheticals. They're real judgments and fines against companies that didn't oversee their outreach — or the people making calls on their behalf.

Liable for vendors' calls
$0M
Dish Network

A record do-not-call judgment — later resolved for $210M — holding Dish liable for tens of millions of illegal calls placed by its own third-party retailers and contractors.

Largest FCC fine ever
$0M
Rising Eagle

The largest fine in the FCC's history, for a health-insurance robocall operation that knowingly dialed roughly a billion calls — many to numbers on the Do Not Call registry.

TCPA class action
$0M
Capital One

One of the largest TCPA class-action settlements on record, resolving claims over autodialed calls placed to consumers' cell phones.

$500 – $1,500

per call or text — that's TCPA exposure in private lawsuits, and willful violations treble to the top of that range. When thousands of people make calls in your name, a single unscreened campaign can become an existential event.

Q1 2026 · record quarter
~0
TCPA cases filed — the highest-volume filing quarter on record.
Year over year
+0%
TCPA filings up roughly 19% year-to-date versus 2025.
Repeat plaintiffs · 2025
0
Serial plaintiffs drove the bulk of all TCPA filings.
Financial services
+0%
Jump in repeat-defendant FS companies — 64 in 2024 to 116 in 2025.
// Your Industry, Specifically

The Insurance Industry Already Has A TCPA Ledger.

This isn't a warning about some other sector. These are real settlements and fines paid by insurers, health plans, agencies, and the lead-gen marketplaces that feed them — the exact ecosystem your agents work in every day.

Health insurance marketplace
$0M
Assurance IQ

An online health-insurance marketplace, later shut down by Prudential, agreed to a settlement of up to $21.875M over alleged prerecorded-voice calls placed without proper consent.

Life insurance carrier
$0M
American Income Life

A traditional life insurer agreed to a $14M TCPA class-action settlement over alleged unwanted calls — proof that established carriers, not just robocallers, end up here.

National carrier
$0M
Allstate

One of several insurance brands reported to reach eight-figure TCPA settlements tied to alleged call violations — a national name pulled in by outreach it didn't tightly control.

Carrier · agents + marketer
$0M
State Farm

Reached a $7M robocall settlement reported to involve its agents and a third-party marketer — the clearest proof a brand gets pulled in for calls made through the people working under it.

$10.5M
Kaiser Foundation Health Plan Opt-out failure
Settled claims over alleged marketing texts that kept coming after consumers replied "STOP" — mishandled opt-outs are their own category of exposure.
$6.5M
Allstate Fax channel
Settled allegations over unsolicited fax ads for auto insurance — TCPA risk isn't only phone calls; fax, text, and prerecorded voice all count.
$5.5M
Pet Health Inc.
Reported to settle alleged TCPA violations — pet and policy-related insurance marketing sits squarely inside the same outreach-risk category.
$5M
Nationwide Insurance
Reported to reach a multi-million-dollar TCPA settlement over alleged violations — another major carrier added to the list.
~$120 /consumer
Allstate / Oh Insurance Agency Carrier → agency → dialer
A settlement over alleged telemarketing made on Allstate's behalf through an agency and a third-party dialer platform — the full liability chain in one case. The vendor doesn't absorb all the risk.
$1.4M
Nationwide Mutual Insurance Co.
Settled allegations of prerecorded robocalls tied to pet-insurance renewals placed without proper consent — even routine policy outreach can trigger exposure.
$990K
Health Insurance Associates
A smaller health-insurance operation settled alleged unsolicited telemarketing claims for nearly seven figures — you don't have to be a national brand to get hit.
$575K
Farmers Insurance Exchange State AG action
Fined by a state Attorney General over alleged telemarketing and No-Call violations — the risk isn't only private class actions; regulators bring their own penalties.

One Pattern Runs Through Every Case

The company that benefited from the marketing got pulled into the claim — even when the call or text came through an agent, a lead provider, a dialer, a CRM, or an outside marketing partner. Carriers, health plans, marketplaces, and agencies have all paid. The defense is the same every time: screen numbers before outreach, document consent, honor opt-outs immediately, vet your vendors, and keep records that prove you did.

Settlement and fine amounts as publicly reported; several companies denied wrongdoing and settled to resolve the claims. Figures are illustrative of industry exposure and do not predict any specific outcome.

// How Courts Decide

Three Doors To Your Liability.

Under the FCC's 2013 Declaratory Ruling, common-law agency principles apply to the TCPA. A company isn't automatically liable for a contractor's call — but it can be, through three theories of vicarious liability. The whole game is keeping all three doors closed.

01
Theory One

Actual Authority

What it requires
You explicitly authorized the conduct — or your systems and processes clearly enabled it.
When it opens
You provided the lead lists, dialer, CRM access, or scripts that were used in the violation.
Closed by an express written prohibition in a signed agreement and no company tools in the campaign.
02
Theory Two

Apparent Authority

What it requires
A consumer reasonably believed the contractor was acting for you — based on your actions.
When it opens
The contractor used your branding, domain, or logo, or was listed publicly in your agent directory.
Closed when no branding is provided and the contractor isn't held out publicly as your rep.
03
Theory Three

Ratification

What it requires
You knew — or should have known — and continued the relationship or accepted its benefits.
When it opens
You worked leads, accepted applications, or paid commissions from the illegal campaign. Passive benefit is enough.
Closed by immediate termination, written repudiation, and rejecting every dollar from the campaign.
// The Myth Of The Label

"Independent Contractor" Is Not A Shield.

The label in a contract is not dispositive. Courts look past it to the totality of the circumstances — and the essential ingredient is the extent of control you actually exercise over the contractor's work.

This cuts both ways. Real independence protects you. But if a contractor is deeply integrated — your shared systems, your reporting, your performance management — plaintiffs will argue the relationship was never truly arm's length, and the label collapses.

Leading Precedent

Jones v. Royal Admin. Servs., Inc. (9th Cir. 2017)

The court held a seller was not vicariously liable for TCPA-violating calls by a vendor's telemarketers — because they were true independent contractors. The vendor controlled who to call, when, and how. The seller didn't exercise enough control. The court applied the Restatement (Second) of Agency's 10-factor test, and it remains a leading precedent for the independent-contractor defense.

// What courts actually ask
  • Do you control the manner and means of the contractor's work?
  • Do you provide the tools, systems, scripts, or lead lists?
  • Do you have the right to direct when, how, and whom they contact?
  • Is the contractor integrated into your business operation?
  • How do you compensate them — salary, commission, per-lead?
  • Did the consumer reasonably believe they were dealing with your company?
// The Line, In Plain Terms

The Stranger vs. The Contractor.

The clearest way to see where liability begins. Picture a major national brand, and someone texting consumers in its name.

Scenario A · No Relationship

The Stranger

A person with no relationship to the brand starts texting consumers saying "I work with them." The brand did nothing to create any appearance of authority. No actual authority, no apparent authority, no ratification — the texter is a fraud actor committing trademark infringement, not the brand's agent.

No relationship = no liability path.
Scenario B · Real Relationship

The Contractor

A distribution contractor texts consumers in the brand's name, against their agreement. Now courts examine the totality of the relationship: were they on the distributor list? Did the brand provide materials? Did the brand benefit from sales? A real relationship opens all three vicarious-liability doors at once.

Real relationship = every door is open.

Your agents are never strangers. Every contractor in your distribution network has a real relationship with your company — which means all three liability theories are structurally available to a plaintiff the moment one of them sends a rogue text. A documented compliance program is the mechanism that keeps you in the protected zone instead of the liability zone.

// The Ledger

Exposed, Or Protected.

Across every research source and case, the same factors separate a company that absorbs the liability from one that sheds it. This is the line, item by item.

⚠ At Risk When…
✓ Protected When…
No written prohibition — or an unsigned, generic agreement
A specific written prohibition in a signed IC agreement
Contractor used company-provided leads, CRM, or scripts
Contractor used entirely their own tools and systems
Company branding, logo, or domain used in the solicitation
No company branding used, provided, or implied
Prior complaints or warnings — and the company didn't act
No prior knowledge; swift action the moment one surfaced
Commissions or leads from the campaign were worked or paid
Zero business accepted; tainted leads identified and rejected
Policies exist only on paper — no enforcement records
Documented training, audits, and a real enforcement history
Delayed response, no written notice, no termination
Immediate written termination and cure notice on discovery
Contractor listed publicly as a company representative
Contractor never held out publicly as an authorized rep
// Same Facts, Opposite Outcomes

One Violation. Two Companies. A Multimillion-Dollar Gap.

The agent's conduct is identical in both scenarios. What changes is everything the company did — or failed to do — before it happened.

// The Triggering Event — identical in both

A licensed independent agent purchases a third-party list of 2,400 numbers and sends automated SMS solicitations using the company's name. The vendor's opt-in consent applied to the vendor only — no qualified written consent existed for these contacts. Within 60 days, 12 demand letters arrive and three plaintiff firms make contact.

344 numbers on the DNC registry 18 known serial litigants 0 qualified written consents
Scenario A · Fully Compliant

The Documented Company

  • Signed agreement with an express prohibition defeats actual authority
  • Immediate termination, zero business accepted defeats ratification
  • Timestamped training & scan records show one agent failed — not the company
  • Class certification denied — the program is the deciding factor
  • Indemnification clause shifts the cost to the agent who acted
Where the liability lands
The Agent
Class action avoided · indemnification puts the cost on the agent who acted, not the company
Scenario B · Non-Compliant

The Danger Zone

  • No written prohibition — courts read silence as implied permission
  • Branding & public listing establish apparent authority
  • Commissions accepted from the campaign confirm ratification
  • Nationwide class certified — discovery surfaces other agents
  • No indemnification — the company absorbs 100%
Potential exposure · no recovery possible
$1M – $20M+
In line with real insurance-sector TCPA settlements — which have run from under $1M into the tens of millions — plus class action, CID, and reputational fallout

Same agent. Same 2,400 texts. The compliant company answers the court's one question — "what did you do to prevent this?" — with a documented program. The other answers it with silence. That silence is the difference between one agent's problem and a company-ending one.

Factor
Scenario A · Compliant
Scenario B · Non-Compliant
Apparent authority
Contested but manageable
Established — branding + no restrictions
Class action risk
None — certification denied
High — nationwide class certified
Serial-litigant exposure
Limited — screening would have caught the 18
Full — no screening tool was provided
Indemnification recovery
Yes — agent liable under signed agreement
None — no agreement in place
Regulatory action
Minimal — compliance record presented
CID issued — enforcement action likely
Company survival risk
None
High — existential financial threat
// When It Happens

Termination Alone Won't Save You.

The TCPA carries a four-year statute of limitations — violations live on long after an agent is gone. Ending exposure takes a documented protocol, executed fast. We build it before you need it.

1

Terminate In Writing

Immediately. A documented timeline; delay is read as acceptance.

2

Issue A Cure Notice

Document the violation and the contract clause it broke. Defeats ratification.

3

Reject All Business

Identify and refuse every lead, application, and commission from the campaign.

4

Preserve Records

The agreement, prohibition clause, communications, and logs — your defense exhibits.

5

Notify Counsel

Especially on a demand letter — response windows and tolling are time-sensitive.

6

Audit The Rest

Documented audits of remaining contractors rebut a systemic-ratification theory.

// The Worst Letter You Can Get

It Doesn't Come From A Plaintiff. It Comes From The Government.

A Civil Investigative Demand is the federal government's version of a subpoena — and it arrives before any lawsuit is filed.

A CID compels your company to produce documents, data, written responses, and sworn testimony — under penalty of perjury. You don't need to be sued; you only need to be on the agency's radar. And unlike litigation, there's no discovery period and no judge to protect you. You build the record the regulator uses against you — which means your compliance program decides whether that production is a strong defense or a self-indictment.

1

Complaint volume trips the analytics

FTC and FCC complaint databases auto-flag entities above threshold. Thousands of agents without guardrails can cross that line with no single plaintiff intending anything.

2

Plaintiff attorneys notify regulators

TCPA firms routinely cross-refer the companies they're already litigating — regulatory pressure amplifies their settlement leverage.

3

The class complaint is public

A federal class action is filed and immediately searchable. Agency staff attorneys monitor these filings and open parallel investigations.

4

Serial litigants file directly

They don't just sue — they file pre-documented, professionally formatted regulatory complaints that carry real weight with agencies.

5

The investigation opens — the CID issues

The Enforcement Bureau issues the demand to your registered agent. Often the first notice is the CID itself, with a non-negotiable deadline.

"After a reasonable search, we were unable to locate any responsive records."

In a regulatory proceeding, that sentence is not a clean answer — it's a confession. The absence of a record is a record: the record of a company that chose not to act. You either have the training logs, scan results, and vetting policies, or you don't.

✓ With a documented program
$55K – $150K

Total CID-related cost — and the investigation closes without action. The compliance record is presented and the matter ends quietly.

✕ Without one
$300K – $1.1M+

Before penalties — then FCC forfeitures up to $10,000 per violation with no aggregate cap, FTC penalties per violation per day, and a likely escalation to formal proceedings.

And The Worst Outcome Is A 20-Year Sentence

  • Independent third-party compliance monitoring — at your expense — for 10 to 20 years
  • Mandatory annual compliance reports submitted directly to the FTC
  • Personal liability that can name individual officers, not just the company
  • Automatic contempt liability for any future violation — bypassing normal litigation entirely
// A Menu Built Around Your Size

Two Ways To Work With Us — Scaled To You.

Start with the tool, or go all the way to a custom, owner-led compliance program. On the call, we'll recommend the right fit for your organization.

Starts Free · The Tool

Litigation Defender Access

Included · scalable
250 free credits with every PropHog account

Scan before you dial — one number, or your whole organization's lead flow.

  • Single-record scanningCheck any number on the spot.
  • Bulk scanningScreen thousands of records in one pass.
  • Organization-wideVolume access for your entire team.
  • Three checks, every scanKnown TCPA litigants, the federal DNC registry, and line type.
See Litigation Defender
Credits scale with your volume
Flagship · Done-With-You Program

Custom Compliance Program

$10,000 – $100,000
Fully custom — priced to the size and complexity of your organization

A complete, owner-led program built for organizations from 10 agents to 100,000. We don't hand you a PDF — we build the posture and put it in place.

  • Discovery & risk auditA full review of your systems and procedures — we fix the highest-risk gaps first.
  • On-site executive engagementThe owner of PropHog flies to your corporate headquarters.
  • Meets with your legal teamDirectly with counsel and leadership.
  • Comprehensive risk planA board-ready plan to mitigate and reduce your exposure.
  • Full implementationEducation, certification, and ongoing training.
  • Fractional Compliance OfficerOptional — a real part-time role inside your company.
Scope My Program
Ongoing support & FCO role quoted case by case
// Build Your Package

What A Custom Program Can Include.

It begins with a full discovery audit — then we assemble the right components for your organization.

Phase 1 · Every program starts here

Discovery & Risk Audit

Before we build anything, we run a comprehensive review of your current systems and procedures — how leads are sourced, scrubbed, assigned, and dialed across your organization. We surface the shortfalls and highest-risk gaps and address those first, so the program is built on what your business actually needs, not a template.

01

On-Site Executive Engagement

The owner of PropHog flies directly to your corporate headquarters to lead the engagement in person — not a vendor, the principal.

02

Legal-Team Presentation

A comprehensive, board-ready plan presented to your legal team and leadership to mitigate and reduce TCPA and DNC exposure.

03

Agent Education

Get every agent to actually understand where the risk comes from and exactly how to comply in day-to-day outreach.

04

Certification Programs

Internal certifications — run the way carriers handle AML — that put on the record that your agents were trained.

05

Ongoing Training

Recurring sessions that keep compliance live and current — not a one-time memo that ages out the day it's sent.

06

Fractional Compliance Officer

A real part-time Compliance Officer role inside your company, so your posture reflects the highest regard for compliance.

// The Architecture Of A Defense

The Five Pillars We Build.

A written rule on its own is the starting line, not the finish. Courts distinguish enforced programs from paper-only policies — so we build all five, and we build the documentation that proves they were real.

Pillar 01

Contracts

Express TCPA/DNC prohibition in every IC agreement, signed acknowledgment, indemnification clause, and E&O requirement.

Pillar 02

Training

Mandatory onboarding and refreshers with timestamped completion records and signed certifications.

Pillar 03

Litigation Defender

A required scan of every outside-vendor lead before contact — regardless of the vendor's own compliance claims — with records retained.

Pillar 04

Monitoring

Random audits, a complaint-intake system, strike-based discipline, and a documented enforcement history.

Pillar 05

Systems Separation

Clear documentation of which tools are company-provided and which aren't — so enablement can't be assumed.

CH
Chris Harbaugh
Owner · PropHog LLC
"The difference between a company that pays millions and one that doesn't often comes down to one thing: posture — backed by decisive action."
  • Flies to your headquarters in person — the principal, not a vendor
  • Sits with your legal team, presents the plan, and puts it in motion
  • Can hold a real part-time Compliance Officer role inside your company
// The Differentiator

Posture Is A Defense. We Help You Hold It.

The difference between a company that pays millions and one that doesn't often comes down to posture: did you take compliance seriously, document it, and act decisively? An aggressive compliance posture — backed by real action — is exactly what regulators and courts look for.

That's why the owner of PropHog will personally fly to your headquarters, sit with your legal team, present the plan, and put it into motion. And when the engagement calls for it, he can hold a real, part-time Compliance Officer role inside your company — signaling, on the record, that your organization holds compliance in the highest regard.

A six-figure compliance program is a rounding error next to a nine-figure judgment — or the cost of not being able to prove you ever tried.
🛡️
// Fractional Compliance Officer

Put A Name On The Org Chart That Regulators Recognize.

When an agency asks "who at your company was responsible for this?", a documented compliance officer answers with a functioning program. A company without one answers with silence. Embed a PropHog compliance lead on a fractional basis — to own your policies and oversight and be the documented person accountable when regulators or courts ask. It's the single most important structural defense against a CID.

Discuss The Role
// Schedule Your Call

Get On The Right Side Of The Line.

We'll assess your exposure, recommend the right level — from scanning to a full custom program — and give you a clear plan. No pressure, no scripted pitch.

Compliance is the cheapest insurance you'll ever buy — a six-figure program is a rounding error next to a nine-figure judgment.

The agent services company — recruiting, branding, training, and TCPA/DNC compliance for insurance agents and agencies who want to grow and stay protected.

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