CAN-SPAM Act Updates -- New Email Rules For Multiple Senders, Opt-Outs, And "Send-To-A-Friend"

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CAN-SPAM Act Updates -- New Email Rules For Multiple Senders, Opt-Outs, And "Send-To-A-Friend"
Commercial email is one of the most significant -- if not
the most significant -- marketing tool of small ecommerce
websites.

For this reason, it's a good idea to stay current with the
CAN-SPAM Act's email rules. In May, the Federal Trade
Commission (FTC) approved several new rules for purposes of
clarifying CAN-SPAM's requirements.

Here's an easy-to-read summary of these important
developments that affect all ecommerce websites.

Multiple Senders And Email Marketing Campaigns

One issue under CAN-SPAM was whether all parties in a
multi-party email would be required to comply with CAN-SPAM.

Under the new rules, multiple parties participating in a
single commercial email may designate a single party as the
"sender", provided that the designated party:

*  meets the definition of a "sender";

*  is the only party designated in the "from" line; and

*  fully complies with the requirements of the CAN-SPAM Act.

By focusing on the "from" line, the new rule represents a
relatively pragmatic solution that is generally favorable
to most joint, commercial email campaigns. However, one
important trap for the unwary is that if the designated
sender does not comply with CAN-SPAM (i.e. identifying the
email as an ad or solicitation, including a physical or
post office address, and handling opt-outs), all marketers
in the email message will be held liable as senders.

Opt-Out Requirements

The new rules streamlined the opt-out process for
commercial email.  The new rules make it clear that email
marketers can not require opt-outs:

*  to pay a fee for a right to opt-out";

*  to provide personally identifiable information other
than an email address; and

*  to take any steps other than visiting a web page or
sending a reply email.

In addition, sales pitches prior to honoring an opt-out
request are clearly unacceptable.

"Send-To-A-Friend"

"Send-to-a-friend" emails are fairly common, especially
with email newsletters. The FTC made an important
distinction between send-to-a-friend emails where the
marketer merely request the recipient to send to a friend
and those emails where any form of consideration is offered
-- such as money, awards, prizes, coupons, or discounts).

If any form of consideration is offered (the amount is
irrelevant), then the seller who requested the forwarding
of the email must comply with CAN-SPAM requirements. If no
consideration is offered, then the seller need not comply
with CAN-SPAM; however, it's recommended that the seller
comply in any event.

Conclusion

The new rules were the final result of approximately 3
years of consideration of the issues. Many of the
suggestions along the way were more burdensome on
commercial emailers.

However, the prevailing view apparently was that the final
rules provide clear guidance so that the reputable email
marketers would not be unreasonably restricted.


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Chip Cooper is a leading intellectual property, software,
and Internet attorney who advises software and ecommerce
businesses nationwide. Chip's 25+ years of experience
include 20 years as Adjunct Professor of Computer Law at
Wake Forest University School of Law. Visit Chip's
http://www.digicontracts.com site and download his FREE
newsletter, Website Law Alert, and also learn about his
"Do-It-Myself" and "Do-It-For-Me" service options.