I am starting a business and would like to know if it is legal to offer payment for information and leads?
What is the law/litigation in regards to this?
Answer
It depends on the business. For example, Pennsylvania attorneys cannot offer access to certain leads (i.e. we cannot pay someone to go to an accident scene and hand-out business cards). I understand that therapist are limited by similar rules. You may be bound by some federal rules of privacy, if you have access to health care or financial information.
In terms of your exposure to a lawsuit, assuming you are not violating rules of your profession, then selling leads does not expose you to any additional liability. I read an opinion from the Pennsylvania Superior Court, stating there is no such cause of action as 'negligent referral'. Read Bourke v. Kazaras, 746 A.2d 642 (Pa. Super. 2000).
You should hire an attorney to discuss the details of your business and your liability. I am happy to help. Good luck.
Sharmil McKee
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