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The CAN-SPAM Act
Requirements for Commercial Emailers
The CAN-SPAM Act of 2003 (Controlling the Assault of Non-Solicited
Pornography and Marketing Act) establishes requirements for those who send
commercial email, spells out penalties for spammers and companies whose products
are advertised in spam if they violate the law, and gives consumers the right to
ask emailers to stop spamming them.
The law, which became effective January 1, 2004, covers email whose primary
purpose is advertising or promoting a commercial product or service, including
content on a Web site. A "transactional or relationship message" – email that
facilitates an agreed-upon transaction or updates a customer in an existing
business relationship – may not contain false or misleading routing information,
but otherwise is exempt from most provisions of the CAN-SPAM Act.
The Federal Trade Commission (FTC), the nation's consumer protection agency, is
authorized to enforce the CAN-SPAM Act. CAN-SPAM also gives the Department of
Justice (DOJ) the authority to enforce its criminal sanctions. Other federal and
state agencies can enforce the law against organizations under their
jurisdiction, and companies that provide Internet access may sue violators, as
well.
What the Law Requires
Here's a rundown of the law's main provisions:
It bans false or misleading header information. Your email's "From," "To," and
routing information – including the originating domain name and email address –
must be accurate and identify the person who initiated the email.
It prohibits deceptive subject lines. The subject line cannot mislead the
recipient about the contents or subject matter of the message.
It requires that your email give recipients an opt-out method. You must provide
a return email address or another Internet-based response mechanism that allows
a recipient to ask you not to send future email messages to that email address,
and you must honor the requests. You may create a "menu" of choices to allow a
recipient to opt out of certain types of messages, but you must include the
option to end any commercial messages from the sender.
Any opt-out mechanism you offer must be able to process opt-out requests for at
least 30 days after you send your commercial email. When you receive an opt-out
request, the law gives you 10 business days to stop sending email to the
requestor's email address. You cannot help another entity send email to that
address, or have another entity send email on your behalf to that address.
Finally, it's illegal for you to sell or transfer the email addresses of people
who choose not to receive your email, even in the form of a mailing list, unless
you transfer the addresses so another entity can comply with the law.
It requires that commercial email be identified as an advertisement and include
the sender's valid physical postal address. Your message must contain clear and
conspicuous notice that the message is an advertisement or solicitation and that
the recipient can opt out of receiving more commercial email from you. It also
must include your valid physical postal address.
Penalties
* Each violation of the above provisions is subject to fines of up to $11,000.
Deceptive commercial email also is subject to laws banning false or misleading
advertising.
* Additional fines are provided for commercial emailers who not only violate the
rules described above, but also: "harvest" email addresses from Web sites
or Web services that have published a notice prohibiting the transfer of email
addresses for the purpose of sending email
* generate email addresses using a "dictionary attack" – combining names,
letters, or numbers into multiple permutations
* use scripts or other automated ways to register for multiple email or user
accounts to send commercial email
* relay emails through a computer or network without permission – for example,
by taking advantage of open relays or open proxies without authorization.
The law allows the DOJ to seek criminal penalties, including imprisonment, for
commercial emailers who do – or conspire to:
* use another computer without authorization and send commercial email from or
through it
* use a computer to relay or retransmit multiple commercial email messages to
deceive or mislead recipients or an Internet access service about the origin of
the message
* falsify header information in multiple email messages and initiate the
transmission of such messages
* register for multiple email accounts or domain names using information that
falsifies the identity of the actual registrant
* falsely represent themselves as owners of multiple Internet Protocol addresses
that are used to send commercial email messages.
Additional Rules
The FTC will issue additional rules under the CAN-SPAM Act involving the
required labeling of sexually explicit commercial email and the criteria for
determining "the primary purpose" of a commercial email. Look for the rule
covering the labeling of sexually explicit material in April 2004; "the primary
purpose" rulemaking will be complete by the end of 2004. The Act also instructs
the FTC to report to Congress in summer 2004 on a National Do Not E-Mail
Registry, and issue reports in the next two years on the labeling of all
commercial email, the creation of a "bounty system" to promote enforcement of
the law, and the effectiveness and enforcement of the CAN-SPAM Act.

    
  
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