What Is the CAN-SPAM Act?

We all know SPAM as the canned processed meat our moms keep in the pantry. But in today’s tech-driven world, “spam” has taken on a new identity.

In the 1970s, a British sketch comedy group named Monty Python performed a series of skits that gave the word new meaning. In these skits, the word “spam” was chanted so many times that it quickly became associated with messages that were annoying and repetitive.

Spam has become such a global dilemma that many countries have implemented legislation to combat it. One of these legislations is the CAN-SPAM Act, which is a United States federal law that protects recipients from unwanted messages and potential cyberattacks.

In this article, we explain what the CAN-SPAM Act consists of, what the main requirements are, the penalties for violation, and how users can report an incident. But first, let’s identify the different types of spam so you can be informed and protected.

What Is the CAN-SPAM Act?

CAN-SPAM stands for “Controlling the Assault of Non-Solicited Pornography And Marketing.” This law was passed in the United States in 2003, and it oversees the requirements for commercial communications that are sent via email.

The CAN-SPAM Act is enforced by the Federal Trade Commission (FTC). Whether it’s business-to-consumer or business-to-business, the law applies to electronic messages used for commercial intent.

Main Requirements of the CAN-SPAM Act

The cost of violation is incredibly high for business entities who do not comply with the law’s requirements. Businesses need direct communication with their customer database in order to operate and grow in today’s market. This usually comes in the form of text messages, phone calls, emails, and social media messages. To avoid penalties, commercial entities must follow these best practices:

Write Clear Subject Lines

Subject lines should clearly relate to the main content.

Include a Valid Address

A legitimate address must be included somewhere in the message. They are usually placed at the bottom of the email next to the unsubscribe link.

Clearly Identify Messages as Advertisement

If your email contains an advertisement or any kind of promotional material, be transparent and let the recipient know.

Allow Recipients to Unsubscribe

Every message must include a way to opt out of receiving future communication.

Honor Opt-Out Requests

Merchants must honor all opt-out requests promptly. When a recipient states they no longer want to receive communications, the sender can no longer deliver messages, sell their information, or transfer their email addresses.

Use a Valid Domain

Ensure the accuracy of the information you provide. Use a valid domain name, email address, and heading.

Penalties for Violating the CAN-SPAM Act

Penalties can be enforced in a number of ways. The FTC can impose civil penalties of up to $16,000 for each separate email that violates the CAN-SPAM Act. Some states have an additional penalty for loss and statutory damages from $250 per violation up to $2,000,000. Internet Service Providers (ISPs) can also impose separate fees for malpractice.

Noncompliance can be costly, but the rules are simple. If businesses comply with the requirements stated in the CAN-SPAM Act, they can avoid thousands and sometimes millions of dollars in fines.

How to Report a CAN-SPAM Act Violation

Recipients can report spammers directly on the FTC’s website. The FTC is the organization that enforces regulations that prevent unfair practices and fraudulent activity. Scams can be reported at ReportFraud.ftc.gov. The webpage also provides guides for merchants and business owners that help them understand the law and comply with it.

In addition to informing the FTC, they recommend that users forward any fraudulent messages to their designated email provider, whether that’s Gmail, Microsoft Outlook, Yahoo, or any other. Every email platform has a filtering system that creates a protective barrier between users and spammers.

CAN-SPAM Act vs. European Union’s ePrivacy Directive

The European Union uses the ePrivacy Directive to regulate the usage of cookies, data privacy, and unsolicited communication. This applies to email marketing, text messages, phone calls, and any other form of electronic communication.

The main difference between the United States’ CAN-SPAM Act and the European Union’s ePrivacy Directive is the opt-in. In the United States, business entities are allowed to send email messages without prior permission. Their main focus is to protect recipients once they unsubscribe and make sure the sender immediately honors every opt-out.

In a similar fashion to the CAN-SPAM Act, the ePrivacy Directive also protects users when they choose to void all communication with any given sender. However, in the European Union, people can only receive messages if they have previously opted in. Whether it’s business-to-consumer or business-to-business, consent must be given, and the recipient must be informed on how their data will be used.

Recap: What Is the CAN-SPAM Act?

In the ’90s, when the use of email became popularized and required for our daily lives, spam found one of its main outlets. Since then, it’s become such a global issue that many countries have implemented legislation to combat it. The CAN-SPAM Act is a law established in the U.S. that oversees the ethical use of commercial emails.

Business entities are required to include a valid address in every message, allow recipients to unsubscribe at any moment, and state when a message contains promotional material. CAN-SPAM stands for “Controlling the Assault of Non-Solicited Pornography and Marketing.” This law is enforced by the FTC, which can impose civil penalties of up to $16,000 for each separate email that violates the act.

Although the stakes are high, spamming remains a significant issue in today’s society. The best way to combat it is by being informed about the rules and regulations, learning how to identify spam when you see it, and immediately reporting it to the FTC.