The CAN-SPAM Act Explained: A Guide for Business Owners

Learn how the CAN-SPAM Act protects your business from fines and keeps emails compliant.
by Christian Nwachukwu
October 5, 2024
Learn how to comply with the CAN-SPAM Act and avoid costly penalties for your business.

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Email marketing is a great way to connect with customers in today’s digital world, but businesses need to follow the rules set by the CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003). This helps you avoid big fines and keeps your customers’ trust intact.

Key Requirements of the CAN-SPAM Act

The CAN-SPAM Act sets the rules for commercial email and gives recipients the right to have you stop emailing them. Here’s what you need to know:

1. Include Mandatory Information in All Commercial Emails

Every commercial email must clearly provide:

  • Your Valid Physical Postal Address: This can be your current street address, a post office box you’ve registered with the U.S. Postal Service, or a private mailbox registered with a commercial mail receiving agency.

Example: At the bottom of your promotional email, include your business address:

“ABC Company, 123 Main Street, Anytown, USA 12345”

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2. Avoid False or Misleading Header Information and Subject Lines

  • Accurate “From,” “To,” and Routing Information: The email’s header information must accurately identify the person or business who initiated the message.
  • Truthful Subject Lines: The subject line should reflect the content of the message.

Example: If you’re offering a 20% discount on products, your subject line could be:

“Save 20% on Our New Product Line!”

Avoid subject lines like: “Your Account Update Inside!” (if the email is actually a promotional offer)

3. Provide a Clear and Easy Way to Opt Out of Future Emails

You must:

  • Explain How Recipients Can Opt Out: The message should include a clear explanation of how the recipient can opt out of getting email from you in the future.
  • Honor Opt-Out Requests Promptly: You must process opt-out requests within 10 business days.

Example: Include an unsubscribe link: “To stop receiving these emails, click here to unsubscribe.”

4. Use Warning Labels for Emails Containing Sexually Oriented Material

If your email contains sexually explicit content, you must:

  • Include a Clear Warning in the Subject Line: Use terms like “SEXUALLY EXPLICIT” to inform recipients about the nature of the content.

Example: Subject Line: “SEXUALLY EXPLICIT: New Adult Content Available”

Penalties for Non-Compliance

Failing to comply with the CAN-SPAM Act can result in severe consequences:

  • Monetary Fines: Up to $16,000 per violating email.
  • Legal Actions: The Federal Trade Commission (FTC) can seek injunctions to stop your business activities.

Example: Sending 1,000 non-compliant emails could potentially result in fines up to $16 million.

Best Practices for Compliance

  • Audit Your Email Practices: Regularly review your email marketing campaigns to ensure they meet all legal requirements.
  • Keep Records: Maintain records of consent and opt-out requests.
  • Train Your Team: Ensure everyone involved in your email marketing understands the CAN-SPAM Act provisions.

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Final Thoughts 

Compliance with the CAN-SPAM Act isn’t just a legal obligation—it’s good business practice. Take the time to ensure your email marketing strategies align with the law to protect your business and foster positive customer relationships.

Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. While we strive to provide accurate and up-to-date information, the CAN-SPAM Act and related regulations may change over time. You should consult with a qualified legal professional to ensure compliance with the law and to address any specific concerns related to your business. The author and publisher assume no liability for any errors, omissions, or damages arising from the use of this information.


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