Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 38

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 38
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 could slow or our customer base could decline.

There can be no assurance that
any increased marketing and advertising spend to maintain and increase the number of visitors directed to our website will be effective.
Any reduction in the number or credit quality of prospective borrowers directed to our platform through internet search engines, Google,
and other search engines, social networking sites or any new strategies we employ could materially and adversely affect our business,
financial condition, results of operations, and prospects.

Regulatory changes may also require
search engines, social media platforms and other online sources to adjust their outreach techniques and algorithms, which may negatively
impact the effectiveness of these platforms. For instance, in 2019, the U.S. Department of Justice, entered into a settlement agreement
with Meta that required Meta to replace the software used in Facebook for housing ads, as a result of claims that the software allowed
advertisers to discriminate based on protected characteristics such as race, national origin, religion, sex, family status and disability.
As a result, platforms using similar software found it necessary to replace their advertising systems. Additionally, in the event the
CFPB takes a more stringent and aggressive interpretation of laws governing Beeline’s interaction with lead aggregators, including
RESPA, it could result in a material reduction in the availability of leads from such sources, increased costs, and increased regulatory
risk.

25

New TCPA regulations in 2025
will impact our compliance costs and subject us to new regulatory and legal risks for noncompliance

Effective January 2025, the FCC’s
new rule under the TCPA requires explicit, one-to-one consent for any form of communication involving messaging or calling between a business
and consumer. In April 2025, the FCC is imposing new text and call opt-out rules, requiring companies who utilize robocalls and robotexts
to broaden the standard terms consumers can use to revoke consent and treat natural language revocation requests beyond the standard opt-out
terms as valid opt-out requests. Further, all reasonable opt-out requests must now be complied with within a reasonable time frame, which
is generally considered as 10 business days. Both new rules may require us to modify our consent and opt-out processes and policies relating
to outreach to consumers for marketing, sales, and customer service. The failure to comply with the new TCPA rules could result in fines
between $500 to $1,500 per violation. If we fail to comply with the rules, it may be subject to legal and regulatory fines, which