Do you use email marketing within your small biz? Probably! Email marketing is extremely popular among small businesses because it is a cost-effective way to reach a large number of customers. However, what many don’t realize is that email marketing is regulated by the Federal Trade Commission through the CAN-SPAM Act. This Act lays out what businesses can and can’t do when emailing people by requiring all commercial emails to contain certain information. The law 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.” So, you don’t need to send a bulk email for it to be considered a commercial email under the Act- any type of email providing information on a new product or service applies.
While the requirements are pretty easy to comply with (see more below), it is important to ensure your compliance because the penalty for violating the Act is steep- as each email in violation is subject to penalties of up to $51,744. To assist in your compliance, here’s a summary of the requirements:
Don’t use false or misleading header information. Your headers, such as “from” and “to”, and your email address, must accurately identify the business sending the email.
Don’t use deceptive subject lines. The subject line must accurately represent the content of the message.
Identify the message as an ad. you must clearly disclose that your message is an advertisement.
Provide your address. Your email must include your physical postal address.
Clear opt-out/unsubscribe instructions Your message must include clear instructions on how the recipient can opt out of getting marketing email from you in the future, even if the recipient has subscribed to your emails.
Time Limits. You must be able to process the opt-out request for at least 30 days after you send your message and you must honor a recipient’s opt-out request within 10 business days.
Remember, you are responsible! Even if you hire a third party to handle your email marketing, you are still responsible for ensuring compliance with this Act.
Once again, while these requirements are fairly simple, it is imperative that you follow them. Additionally, there are many additional requirements that may apply, such as if you send more than 5000 emails at a time, send commercial emails to residents of Iowa, Indiana, Tennessee, Montana, Oregon, Delaware, and Texas (this list is always expanding), or will process data of EU or Canadian residents- so it’s best to look into your specific situation by consulting an attorney to ensure compliance. Read more on how transactional attorneys can assist your small business here: How Can a Transactional Business Lawyer Help My Company?
DISCLAIMER: This blog post is meant for informational purposes only and does not constitute specific legal advice or create an attorney-client relationship. Readers should discuss their specific situation and considerations with an attorney.
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