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Homepage --> Do You Need to Comply with the Can-Spam Act? Send this article to a friend.

Do You Need to Comply with the Can-Spam Act?

By HEP Development Services

The CAN-SPAM Act is a Federal legislation effective January 1, 2004 to prohibit predatory and abusive commercial email practices. Officially, it is “Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003” and supercedes any state legislation.

Enforcement is through the Federal Trade Commission and imposes requirements on senders of commercial e-mails to identify themselves honestly and describe fairly the product or service they are promoting. The Act provides consumers with an opportunity to demand an organization cease sending commercial e-mail messages. Penalties range from civil to criminal for the most egregious violations.

CAN-SPAM applies to the activities of for-profit and non-profit entities. Importantly:

  • eMails initiated by a non-profit are NOT blanketly exempt
  • Prior transactional relationships are NOT blanketly exempt (for example eMails to alumni are NOT blanketly exempt)
  • Applies to Commercial E-Mail, NOT to Transactional E-Mail

Commercial e-mails are defined as “any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service. Commercial e-mails may cover such things as products offered by a University to third parties; trips (alumni trips organized by a University office), event tickets, or subscriptions to journals, magazines, or newsletters.

In the CAN-SPAM Act, Congress did not create a pre-existing or current business relationship exemption. Thus, any organization that sends marketing-related material to third parties by e-mail – whether new or established customers – should comply with the requirements of the Act because its e-mails may well be viewed as commercial messages.

Transactional e-mails have the primary purpose to:

  • Facilitate, complete or confirm a commercial transactiono Provide warranty or safety information about a commercial product used or purchased by the recipient
  • Notify a change relating to a subscription, account or ongoing commercial relationship
  • Inform related to employment or related benefit plan
  • Deliver goods or services the recipient is entitled to receive under the terms of a transaction between the recipient and sender

For more information on HEP Development Services visit www.hepdata.com.

May 2004

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