There is some debate about the source of the term, but the generally accepted version is that it comes from the Monty Python song, "Spam spam spam spam, spam spam spam spam, lovely spam, wonderful spam??" Like the song, spam is an endless repetition of worthless text. Another school of thought maintains that it comes from the computer group lab at the University of Southern California who gave it the name because it has many of the same characteristics as the lunchmeat Spam:

Nobody wants it or ever asks for it.

No one ever eats it; it is the first item to be pushed to the side when eating the entree.

Sometimes it is actually tasty, like 1% of junk mail that is really useful to some people.

Whatever the origin of its name – or its sender – SPAM is considered by many to be an annoying, useless by-product of the convenience of email.

Marketing departments, on the other hand, have long recognized the value of using email to reach a large audience with their message. And, if done properly and professionally – in compliance with federal regulations – it can be a valuable, legitimate tool.

What is CAN-SPAM?

CAN-SPAM refers to the Controlling the Assault of Non-Solicited Pornography And Marketing Act. This act, signed into law by President George W. Bush, went into effect on January 1, 2004.

Why was the CAN-SPAM Act enacted?

By 2003, unwanted email advertisements for products like Viagra, porn sites, get rich quick schemes, etc. had reached crisis proportions – 15 billion per day!

Individuals and businesses became fed up (pun intended). As a result, as much as 74% of the population favored a law that would make mass spamming illegal. The CAN-SPAM Act was drafted in response to this increasingly distasteful situation.

Does CAN-SPAM make SPAMMING illegal?

No. The law actually permits email marketers to send unsolicited bulk messages as long as they comply with the requirements of the CAN-SPAM Act.

In fact, according to the MessageLabs Intelligence 2010 Annual Security Report, of the 294 billion email messages sent globally per day, 89.1% (approximately 262 billion) were spam. That’s an increase of 1647% since 2003!

What does CAN-SPAM do?

The Act sets rules for the content of commercial email.

Commercial email is defined as “any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service (including content on an Internet website operated for a commercial purpose)”.

The law applies to both bulk email and individual email messages.

There are no restrictions against a company emailing its existing customers – or anyone else who has inquired about its services or products – even if the person has not given explicit permission.

What are the CAN-SPAM Rules?

CAN-SPAM requirements can be broken down into three categories:

Unsubscribe Compliance Rules
- Commercial email must include a “clear and conspicuous” means of opting out.
- If the unsubscribe mechanism is through the web, it can only contain one web page and can only request the person’s email address.
- Opt-out requests must be honored within 10 days of receipt.
- The mechanism for opting out of any specific email must be live for 30 days after the email was sent.
- Opt-out (Suppression) lists can only be used for compliance purposes. They cannot be sold to or shared with third parties.
Content Compliance Rules
- The “from” line must indicate the entity that is sending the message.
- The “subject” line must be relevant to the offer in the body of the email.
- The email must contain a legitimate mailing address (PO Boxes are allowed) of the sender.
- It must be stated clearly that the email is an advertisement, offer or “commercial” email.
- Sexually-oriented commercial emails must include the label “SEXUALLY EXPLICIT” at the beginning of the subject line and the equivalent of a plain brown wrapper in the body of the message (as required by the Federal Trade Commission (FTC).
Sending Compliance Rules
- The message cannot be sent through an open mail relay.
- The message cannot be sent to harvested email addresses.
- The message cannot contain a false email header (email spoofing). Headers, including From, To and routing information must accurately identify the person or entity sending the email.

You should also know that, as required by the ACT, the FCC has adopted rules that prohibit sending commercial email messages to wireless devices without prior permission. And, a recent federal court decision appears to expand the reach of CAN-SPAM to social media.

Some misunderstandings about CAN-SPAM

The law, as currently written, does not require senders to get permission before sending marketing/commercial messages. However, permission-based opt-in or double-opt procedures are the platinum standards for email marketing.
CAN-SPAM preempts state anti-spam laws that do not deal with fraud.
Although CAN-SPAM allows the FTC to implement a national do-not-email list similar to the Do Not Call Registry, there currently is no do-not-email list, and the FTC has no plans to develop one.
Following CAN-SPAM to the letter does not guarantee your email message will get through. Individuals and companies have their own SPAM filters that aren't necessarily looking for CAN-SPAM violations, but for other indicators that the email might be spam. For instance, the words "Viagara" or "FREE" in the subject line. Or, too many bad email addresses. In addition, individual email users can reject your email address or domain name if they don't want to receive your emails.

What are the consequences of non-compliance with CAN-SPAM?

The legislation prohibits email recipients from suing spammers or filing class-action lawsuits. However, it does allow enforcement by the FTC, State Attorneys General and other federal agencies. It also allows ISPs to sue spammers.
One common consequence of suspected SPAM violations is the blacklisting of your email domain by ISPs at the request of your customers or email recipients. Once your domain is blacklisted, none of your email messages will be delivered to customers of the blacklisting ISP. ISPs are also allowed to sue violators.
Each separate email violation is also subject to penalties of up to $16,000.00. Email that makes misleading claims about products or services may be subject to deceptive advertising laws, which may involve additional fines and even imprisonment.

Bottom line? If your organization has jumped on the email marketing bandwagon – and what organization hasn’t – in order for your initiatives to be successful, you need to be aware of email content best practices and, at the least, comply with CAN-SPAM regulations.

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Disclaimer: The information in this article is not, nor is it intended to be legal advice. It is imperative that any action you take be done on the advice of competent legal counsel, and not based solely upon this article.

ABC-Amega Inc. has provided commercial receivables collection services since 1929 and collects in more than 200 countries and territories worldwide, For further information, contact info@abc-amega.com.