Ask a Florida Small Business Lawyer: What Is the CAN-SPAM Rule?

Ask a Florida Small Business Lawyer: What Is the CAN-SPAM Rule?

Ask a Florida Small Business Lawyer: What Is the CAN-SPAM Rule?

In 1965, academics at the Massachusetts Institute of Technology (MIT) used simple email-like communication. By 2019, about 3.9 billion people used email as a form of communication. In fact, many companies conduct business and market themselves through email. It’s very likely that you check your inbox and sent folders every day. That’s why it is so important to understand the CAN-SPAM Act. If you are unsure how this Act affects you, continue reading to get a Florida small business lawyer’s take on this critical situation.

What is the CAN-SPAM Act?

CAN-SPAM stands for Controlling the Assault of Non-Solicited Pornography and Marketing. Enacted in 2003, Congress intended this law to set standards for spam emails.

The CAN-SPAM Act explicitly requires senders to:

  • Accurately identify the sender and routing information.
  • Not use deceptive subject lines.
  • Identify advertisement emails.
  • Include your company’s physical postal address.
  • Explain how to opt out of future emails.
  • Promptly honor opt-out requests.
  • Monitor anyone sending email on your behalf.

Part of the difficulty in complying with the CAN-SPAM Act is knowing which of your emails the Act covers. That’s because the Act’s rules and regulations do not cover all email communications.

What kind of emails are covered by the Act?

The CAN-SPAM Act requires you to recognize what type of email you are sending. For example, the Act considers three different types of email:

  • Commercial content. This type of email “advertises or promotes a commercial product or service.” Example: Company A sends an email to its subscribers describing a new widget they just added to their product line.
  • Transactional or relationship content. This category includes emails that discuss a transaction that’s in progress. Example:  Company A emails Client Smith about his current order of 1,000 widgets.
  • Other content. Essentially, this is a ‘miscellaneous’ email that’s neither commercial content nor transaction or relationship content. Example: Company A sends an email wishing its customers Happy Holidays. The email does not attempt to sell anything or discuss ongoing widget transactions.

Difficulties arise when content is mixed. For example, Company A wishes its customers Merry Christmas and touts its new holiday widgets as potential Christmas presents. This type of mixed content should generally follow the most restrictions under the CAN-SPAM Act to be safe.

Penalties under the Act are harsh. Each separate violation is subject to penalties of up to $43,792. Also, keep in mind that more than one entity can be held responsible for violations. If you use a third party to send your emails, it’s critical to review their work periodically to make sure it complies.

For information about business-related compliance issues, talk to a Florida small business lawyer.

Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.

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