What is a CAN SPAM Act?

The CAN SPAM Act is enforced by the FTC or Federal Trade Commission. It is the US law that outlines the rules/regulations for commercial messages or emails. Passed in the year 2003, the Controlling the Assault of Non-Solicited Pornography and Marketing Act determines various rules to make communication exchanges clear and safe. It is, therefore, important for the application of guidelines that keep this communication ethical. For this, several rules are put into place, ranging from clear email subject lines to correct header information. However, keep in mind that these rules, as part of the 2003 Act, apply to commercial emails, messages, and website information/content. This implies that other types of mail, such as transactional, are exempt from it. In case of any breach, hefty charges and legal consequences can apply.

What is the CAN SPAM Act?

Passed in the year 2003, the CAN SPAM Act is a law that puts forth the first or initial US national standards to send commercial messages/emails. Better understood as the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN SPAM) Act, it involves the FTC or Federal Trade Commission in enforcing the necessary provisions. 

• This act was introduced by Conrad Ray Burns, the Former US Senator.

• The Former President of the US, in 2003, George W. Bush signed this bill into law.

• Afterward, this legislation was enacted on 1st January 2004.

Why is CAN SPAM Important?

The CAN SPAM law is important for the application of stringent guidelines or rules to keep emails ethical. Thus, it helps ensure a thoughtful exchange of communication using the online medium. This act further retains its importance for reasons beyond.

• The CAN SPAM Act provides recipients with the safety and control they need over commercial emails. 

• It directs businesses to comply with the necessary email communication standards. 

• This law assists enterprises in being transparent and disclosing senders' details as per commercial ads and email marketing forms. 

What are the Main CAN SPAM Rules?

One of the main rules under the CAN SPAM law is to create email subject lines that are clear. Each subject line should offer clarity regarding the main message in every mail. In addition to complying with this regulation, a business or enterprise should adhere to 5 others. 

• An important rule under the CAN SPAM Act is that the email should clarify that it is an ad. 

• It should contain the physical address of the business.

• The message should extend to a recipient the option to unsubscribe if he/she wants to.

• It should be accurate in terms of the information in the email's header.

• Ensure the correctness of the header details such as the email ID, name of the originating domain, and fields like “To”, “Reply-To”, “From”, etc.

What Type of Email is Covered by the CAN SPAM Act?

Typically, CAN-SPAM covers commercial emails. It determines the requirements and rules for these types of messages. Not only these but it also provides recipients with the right to limit sending emails. Moreover, this law of 2003 outlines severe penalties in case of any violations.

Covering Commercial Emails and Purposes

The CAN SPAM Act primarily applies to messages that are commercial in nature. Their main purpose should revolve around promoting a commercial offering, i.e. a service or product. Note that this act of 2003 additionally covers website information/content available for commercial purposes. 

• Hence, when an email comprises commercial information, it should comply with this law.

• This compliance can help limit the spread of misleading or false content.

Which Emails are Exempt under CAN SPAM?

Emails or messages, other than those that are commercial in nature, are exempt under the CAN SPAM Act. In other words, it does not apply to relationship content or transactional information. Such content involves finalized or ongoing agreements between sellers and buyers for the exchange of goods or services. Further, it can include financial updates to customers. 

Keep in mind that in case an email is neither relationship-based nor transactional, CAN-SPAM may still not apply. However, its type should also not be commercial.

What are the Penalties for Breaching the CAN SPAM Act?

Upon violating the CAN-SPAM law, enterprises or businesses may require paying up to $43,792 per message or email. This penalty can apply to one or more parties liable for such an email. Even when a third party is involved in marketing, a business will be responsible for its behavior.

Under this US law, accompanying its violation, companies or senders may have to pay civil fines or face criminal charges. Other than these, legal consequences can apply. In the long run, such a company may undergo reputational risks or damage.

• Bear in mind that, as part of the CAN SPAM Act, a private citizen has no standing/position to sue.

• However, state attorneys, the Federal Trade Commission (FTC), and ISPs or internet service providers can file suits on behalf of citizens.

How does CAN SPAM Identify Commercial Messages?

Through 5 parameters, CAN-SPAM identifies whether or not an email or message is commercial. For the same, this law narrowly considers every parameter or category. Businesses should essentially adhere to each of these and comply with the CAN SPAM Act in case their emails are commercial.

In accordance with this United States law, an email is not commercial when: 

• It confirms, completes, or facilitates commercial transactions agreed upon by recipients.

• The message alerts recipients about any changes in the features or terms of their subscriptions, memberships, loans, accounts, or commercial relations. Further, emails are not commercial when they inform receivers about changes in their positions/standing in relation to their ongoing terms with businesses. Also, these messages are relationship-based/transactional when they give information to recipients regarding account balance details either periodically or regularly.

• Its contents provide safety, recall, security, or warranty information regarding a service or product purchased by a consumer.

• The message contains information regarding employment terms or benefits.

• It provides a service or product in relation to a transaction agreed by a recipient.

In Completion

The CAN SPAM Act is a crucial law that enables businesses to ethically communicate through commercial emails. It works through the utilization of several strict rules that give clarity to recipients and maintain transparency. Undoubtedly, it is an important law of 2003 that identifies commercial messages or information and ensures compliance with the necessary communication standards.

Please check out our Call Tracking Software Teldrip. Teldrip features a white label call tracking platform, identified for its advanced functioning. It enables businesses to rebrand and customize the solution.