You run a business, and you're looking for ways to make your marketing strategies effective, but you also want to avoid running afoul of the law. That's where the CAN-SPAM Act for your business comes in.
It's a federal law that governs commercial emails and sets standards for their content and sending. In addition, it gives recipients the right to have you stop emailing them.
This legislation aims to protect consumers from unwanted and misleading commercial messages.
Compliance with the CAN-SPAM Act is critical for businesses of all sizes. Non-compliance can result in significant fines and damage to your reputation.
By understanding its requirements and taking steps to comply, you can ensure your business stays within the law and that your email marketing efforts are as effective as possible.
So, what exactly is the CAN-SPAM Act for marketers? In simple terms, it's a set of rules that dictate how commercial emails should be sent.
Here’s the explanation:
Any email that promotes a commercial entity's goods, services, or websites is considered commercial and falls under the CAN-SPAM Act.
The Act's main goal is to:
The CAN-SPAM Act covers all commercial emails from the US and those sent to US residents.
The CAN-SPAM Act of 2003 has four main provisions:
The act requires that commercial emails include clear and conspicuous identification that the message is an advertisement and the sender's valid physical postal address.
Commercial emails must include a functioning opt-out mechanism that allows recipients to unsubscribe from future messages easily.
Commercial emails must not contain deceptive or misleading subject lines that misrepresent the content of the message.
The act provides for enforcement by the Federal Trade Commission (FTC). It provides for civil penalties for violations, including fines of up to $43,792 for each separate email sent in violation of the act.
The act also allows state attorneys general to bring an action on behalf of their residents.
In 2021, the FTC levied a massive $120 million fine against a single spam operation, which shows the consequences of non-compliance can be severe.
What Types of Emails Are Prohibited by the CAN-SPAM Act for Marketers?
The CAN-SPAM Act applies to any business that sends commercial emails, regardless of size or location.
The CAN-SPAM Act applies to your business if it sends emails promoting or advertising its goods, services, or websites.
However, specific eligibility criteria determine whether the CAN-SPAM Act covers a business.
For example, if your business sends messages, such as account updates or confirmations of purchase, it may be exempt from the provisions of the CAN-SPAM Act.
Again, the CAN-SPAM Act has certain exclusions.
For example, the act excludes emails from political organizations, charities, or religious organizations.
Additionally, transactional emails, also known as "relationship" emails, are not exempt from the CAN-SPAM Act. Transactional emails are defined as emails that are necessary to facilitate, complete, or confirm a transaction that the recipient previously agreed to.
These types of emails are still subject to the provisions of the CAN-SPAM Act, including the requirement for accurate header information, an opt-out mechanism, and compliance with opt-out requests.
However, transactional emails are given a lower priority than commercial emails and are subject to fewer content requirements.
Understanding the difference between transactional and commercial emails is essential to ensure compliance with the CAN-SPAM Act.
You should also know whether you are eligible or excluded from the CAN-SPAM Act to ensure your email marketing campaigns comply with the law.
As a marketer, ensuring CAN-SPAM compliance in your email campaigns is easy. Here's what you need to keep in mind:
Make sure the sender information in your "From," "To," and routing data accurately identifies you or your business as the sender.
As a business, you have certain obligations under the CAN-SPAM Act regarding commercial emails. These obligations are designed to protect consumers from deceptive and unwanted emails and ensure that you are transparent in your messaging.
The CAN-SPAM Act sets specific requirements for the content of commercial emails, such as accurate header information and subject lines and an opt-out mechanism that allows recipients to unsubscribe from future emails.
Additionally, commercial emails must identify the sender and include a physical postal address.
The CAN-SPAM Act's opt-out provisions are significant, as they allow recipients to opt out of receiving future emails from your business. Here’s what you should keep in mind:
By following best practices and avoiding common compliance pitfalls, you can ensure your emails comply with the law and that your reputation remains intact. Here’s your go-to checklist:
NOTE:
Under the CAN-SPAM Act, there are certain information requirements for commercial emails that must be met to ensure compliance.
However, there is also certain information that is not required to be included in commercial emails. Here are some examples of information that is not required for CAN-SPAM compliance:
It is important to note that these examples do not cover all of the requirements of the CAN-SPAM Act.
Therefore, you should consult the act and related guidelines to understand the information requirements for commercial emails.
Here are a few examples of CAN-SPAM-compliant commercial emails:
The consequences of violating the CAN-SPAM Act can be severe, with fines and penalties that can quickly add up. In addition to the financial consequences, non-compliance with the CAN-SPAM Act can also lead to legal action and damage to your business's reputation.
Under the CAN-SPAM Act, each email violation can result in fines of up to $43,792. For example, if you send 1,000 non-compliant emails, the total fine could be as much as $43,792,000.
In addition to fines, non-compliance with the CAN-SPAM Act can also result in legal action. Businesses that violate the act can be sued by the Federal Trade Commission (FTC) or by individual consumers.
Litigation can be costly and time-consuming, and it can also harm your business's reputation.
One effective way to stay compliant is to make CAN-SPAM Act email marketing a vital part of your promotional strategy. This includes regularly training employees on the requirements of the act and incorporating best practices into your email processes.
Another important step is to regularly review your email content and opt-out mechanisms to ensure that they are up to date and in compliance with the CAN-SPAM Act.
By staying informed and proactive about your compliance, you can ensure your business's commercial emails are transparent, trustworthy, and well-received by your customers.
By taking these steps and prioritizing CAN-SPAM compliance, our team at Revnew can help build a strong reputation for your firm and maintain its long-term success.