Release Date: 10/ 03/ 2005
Spam e-mails have become a sad reality of most Internet users' online experiences. While there is no one conclusive story explaining the origins of the term "spam," it has come to mean any form of unwarranted e-mail correspondence. Spam has taken many shapes and many forms, and the cost of combating this deluge of unwanted e-mails has skyrocketed, costing businesses around the globe billions of dollars.
In response to an unparalleled level of consumer outcry, Congress created the CAN-SPAM act in 2004 to try and curb the spam problem. CAN-SPAM created a new regulatory regime for commercial e-mail and proscribed penalties for those who do not strictly follow the government's guidelines. While ineffective in stopping the majority of spam, most of which comes from other countries, the CAN-SPAM act has very relevant ramifications for small businesses.
CAN-SPAM at a glance- Primarily concerned with unsolicited commercial e-mail (i.e. selling products, announcing sales, etc.)
- E-mails can not contain false or misleading information about who or where it came from
- The subject line must accurately describe the e-mail's contents
- Recipients must be given an "opt-out" method whereby they can choose to stop receiving the e-mails
- Commercial e-mails must be clearly labeled as advertisements
- E-mails must contain the physical mailing address of the company
- Complaints are handled by the Federal Trade Commission
- In situations where there is a prior business relationship with the recipient, the e-mail must only accurately display who and where the email came from.
- All other commercial e-mails are considered unsolicited and must conform with the guidelines.
- Any unsolicited commercial e-mail a business sends (flyers, newsletters, sale announcements, etc.) must strictly follow the applicable federal regulations.
- Applies only to companies incorporated within the United States.
- Carefully examine and follow all government guidelines when beginning an e-mail campaign
- Consult the FTC Web site for answers to specific questions about commercial e-mail
- Examine your e-mail list and determine if the recipients have a prior relationship with your company
- Be as accurate as possible when crafting an e-mail message
- Make sure your e-mail can be clearly identified as an advertisement
- Keep detailed records of all of the e-mails that you send, including recipients and copies of the e-mails
- Always include ways that a recipient can physically contact your business
- Consider contacting a technical consultant for efficient ways to create an "opt-out" method
Punishments for noncompliance
- Each violation is subject to fines of up to $11,000.
- The FTC can refer cases of extreme e-mail abuse to the Department of Justice for potential criminal prosecution.
For more information regarding the CAN-SPAM Act or any other questions related to commercial e-mail, contact the Federal Trade Communication at 1-877-FTC-HELP (382-4357).
