Email marketing is one of the most widely utilized forms of customer engagement. Its low-cost coupled with high-reach makes email blasts an attractive option for business both small and large. However, many businesses and marketers are unaware of the regulations surrounding commercial electronic mail, or the up to $1600 per violation that comes from disregarding rules.
During the internet’s early years, consumers found themselves pelted with hundreds, if not thousands, of unsolicited emails. Some of these emails were innocuous promotional messages, but many contained misleading information or pornographic materials. As a response to these messages and as a way to protect internet users, the “Controlling the Assault of Non-Solicited Pornography And Marketing Act of 2003” was signed into law in December of 2003. The goal of the act was to limit the number of frivolous, dangerous, or inappropriate messages consumers received.
The CAN-SPAM Act only applies to commercial mail, which is construed broadly. The act defines commercial email as “any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service (including content on an Internet website operated for a commercial purpose).” This includes everything from email blasts to coupons to promotional newsletters. Less obvious forms of CAN-SPAM commercial mail include promotion codes coupled with the prompt to “forward” or “invite friends.”
To comply with CAN-SPAM, businesses should keep the following in mind:
Violations can result in steep fines for any party involved. Both the company whose product is promoted in the message AND the company that actually sends the message may be held legally responsible, meaning public relations and marketing companies must keep these rules in mind at all times.
For more information on how your business can comply, see the FTC’s CAN-SPAM Compliance Guide or contact one of our attorneys.
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