GDPR and Lead Generation Companies: Challenges and Solutions

Updated, May 2025

What are lead generation companies?

Companies that use various marketing and advertising techniques to identify and capture individuals or businesses who express interest in a particular product or service and generate potential customer leads for businesses are called “lead generation companies.”

These companies then provide their clients with leads, often in the form of contact information or other relevant data, allowing the client to launch focused marketing or sales activities.

Key Takeaways

• Lead generation companies collect diverse personal data, including contact info, demographics, behavioural data, social media profiles, survey responses, and tracking technologies, all of which must be managed in compliance with GDPR.

• Under the GDPR, both lead generation companies and their clients may act as Data Controllers or Data Processors, each with specific responsibilities to ensure lawful processing, transparency, and respect for the rights of data subjects.

• Compliance involves establishing clear processing agreements, conducting regular audits, implementing strong security measures, performing risk assessments, and maintaining procedures to respond to data subject requests.

• Adhering to GDPR not only ensures legal compliance but also builds trust with leads and clients, promoting accountability and safeguarding individual privacy in the competitive lead generation market.

Lead generation companies employ a range of strategies to attract potential leads. This may include:

• Online advertising
• Search engine optimisation (SEO)
• Content marketing
• Social media marketing
• Email marketing
• Webinars and events
• Lead magnets and opt-in forms
• Partnerships and affiliates

To implement those strategies, they create landing pages, forms, or interactive tools to capture visitor information and qualify leads based on specific criteria provided by their clients.

It is worth mentioning that according to a market research report on the “B2B Lead Generation Services Market,” the market size share for lead generation services is projected to reach USD 33.37 billion by 2027.

This represents a significant market scale, and companies aiming to enhance their performance and market share in this industry must ensure compliance with GDPR and other relevant regulations.

What kind of personal data do lead generation companies collect, use and process?

Lead generation companies may collect, use, and process various types of personal data depending on their specific strategies, including:

Individual’s Contact Information

Names, emails, phones, and addresses. This enables companies to connect with potential leads and engage with them.

Demographic Data

Age, gender, location, occupation, or industry. This information enables companies to understand their target audience better and tailor their marketing efforts accordingly.

Behavioural Data

Information on user behaviour, including website visits, page views, clicks, and interactions with online content. Behavioural data helps companies assess the preferences and interests of potential leads and personalise their marketing strategies.

Data from Social Media Profiles

Public information is available on various platforms, including LinkedIn, Facebook, Twitter, and Instagram. This data can provide insights into a lead’s professional background, interests, or social connections.

Survey Responses Data

Information from conducted surveys or collected responses to specific questions can be gathered to gather additional data about potential leads. This can include preferences, opinions, or feedback on specific products or services.

Cookies and Tracking Technologies

Cookies, pixels, or other tracking technologies to collect data about website visitors’ browsing behaviour, preferences, or device information. This data helps in optimising marketing campaigns and improving user experience.

On what legal basis do lead generation companies collect personal data?

The most common legal basis for collecting such data is:

Consent

Consent should be explicit and informed, freely given, specific, and individuals should have the option to withdraw it at any time. This consent is provided by individuals while filling out a form, subscribing to a newsletter, or participating in a promotion.

Legitimate Interests

Companies may rely on their legitimate interests as a legal basis for processing personal data. This means that they have a genuine and justifiable reason to collect and use the data, and the processing does not override the individual’s fundamental rights and freedoms, as assessed. Legitimate interests may include marketing purposes, customer relationship management, or business development.

Contractual Necessity

In the case of a contractual relationship between the lead generation company and the individual, collecting personal data may be necessary to fulfil the terms of the contract.

Legal Obligations

Lead generation companies may also be legally obligated to collect and process personal data to comply with applicable laws or regulations, for example, to verify the identity of customers, prevent fraud, or fulfil reporting obligations.

Roles of Lead Gen Service Providers and Their Clients

Under GDPR, Lead Generation companies can be in the role of Data Controller or Data Processor.

Roles of Lead Generation Companies

Lead Generation companies can be in the role of Data Controller or Data Processor.

• Data Controller: In most cases, lead generation companies determine the purposes and means of processing personal data and are responsible for GDPR compliance. They must provide transparency, rights, and privacy protections to individuals.

• Data Processor: In some cases, if the company processes personal data strictly on behalf of the data controller (the company buying the leads), it acts as a data processor. They must follow instructions from the data controller and implement appropriate security measures.

Roles of Companies Buying Lead Generation Services

These companies can also serve as a Data Controller or a Data Processor.

• Data Controller: Typically determines purposes and means of processing data and ensures GDPR compliance, including having a legal basis, informing individuals, respecting rights, and implementing security.

• Data Processor: If outsourcing data processing to another organisation, this role applies. The company must ensure the processor complies with GDPR and has a Data Processing Agreement (DPA).

Joint Controllers Agreement (JCA)

Where applicable, a JCA outlines responsibilities and roles, and ensures GDPR compliance between the parties when they share control over data processing.

What GDPR measures should lead gen companies and their clients take?

Understand Roles and Responsibilities

Both companies must clearly understand their GDPR roles as outlined in their service agreement.

Establish Suitable Processing Agreements

Implement Data Processing Agreements or Joint Controller Agreements to ensure compliance and safeguard individuals’ rights.

Conduct Regular Audits

Ensure lawful and fair processing, confirm data processors only process data as authorised, and verify security measures are in place to protect data.

Assess and Mitigate Risks

When processing activities pose a high risk to individual rights, conduct Data Protection Impact Assessments (DPIA).

Ensure Proper Handling of Data Subject Requests

Data controllers must confirm that data processors have Subject Access Request (SAR) procedures and assist with responding to individual rights requests (access, rectification, erasure, etc.).

Conclusion

Lead generation companies play a crucial role in identifying and capturing potential customer leads for businesses using various marketing strategies. These companies collect and process a wide range of personal data types.

Under GDPR, both lead generation companies and their clients have responsibilities as data controllers or processors. Compliance requires understanding roles, establishing agreements, conducting audits, ensuring lawful processing, implementing security measures, assessing risks, and managing data subject requests.

By adhering to GDPR, companies promote transparency, accountability, and protect individuals’ privacy, building trust with audiences and maintaining a competitive advantage in the industry.

How can we help you?

GDPRLocal offers guidance, resources, and expertise tailored to specific regulatory requirements. We assist with:

• Drafting and reviewing Data Processing and Joint Controllers Agreements
• Providing Technical and Organisational Security Measures checklists
• Conducting audits and assessing risks
• Developing policies, procedures, and employee training

Visit our website, sign up on our portal, schedule a meeting, or explore our services for GDPR compliance support.

Frequently Asked Questions (FAQs)

1. What personal data do lead generation companies typically collect?
Lead generation companies collect various types of personal data, such as contact information, demographic details, behavioural data from website interactions, social media profile information, survey responses, and data gathered through cookies and tracking technologies.

2. What roles do lead generation companies and their clients play under GDPR?
Lead generation companies and their clients can act as either Data Controllers or Data Processors. Data Controllers determine how and why personal data is processed, while Data Processors handle data on behalf of the controllers. Both have specific GDPR compliance responsibilities.

3. How can lead generation companies ensure GDPR compliance?
They should clearly define roles in processing agreements, conduct regular compliance audits, ensure that data processing is lawful and transparent, implement security measures, perform risk assessments, and maintain procedures to handle data subject requests, such as access or erasure.