Dont Overlook the CAN-SPAM Act

Donêt Overlook the CAN-SPAM Act

[I]NADA recently sent to all state and metro auto dealer associations the following reminder of several important aspects of the CAN-SPAM Act, which imposes restrictions on commercial e-mail messages to businesses and consumers:[/I]

Many businesses assume the CAN-SPAM Act only applies to massive e-mail marketing campaigns to thousands of consumers. The law actually imposes much broader restrictions that reach even the occasional sender of commercial e-mail. Hereês a brief recap of some of the lawês basic features:

[SIZE=4]. [/SIZE]It applies to any commercial e-mail, which is defined as an e-mail whose [I]primary purpose[/I] is to advertise or promote a commercial product or service (including content on a web site operated for a commercial purpose).

[SIZE=4]. [/SIZE]It applies not just to mass e-mail marketing campaigns but also to a single commercial e-mail (there is no [I]de minimus[/I] rule). It also applies to commercial e-mails to businesses as well as to consumers.

[SIZE=4]. [/SIZE]Its disclosure requirements do [U]not[/U] apply to [I]transactional[/I] e-mails, such as messages confirming a commercial transaction that the recipient has agreed to enter into with the sender.

[SIZE=4]. [/SIZE]The FTC has developed several criteria for determining whether dual-purpose messages are commercial and thus subject to the disclosure requirements outlined below.

[SIZE=4]. [/SIZE]Commercial e-mails to [U]non-wireless devices[/U] must:

1. clearly and conspicuously state that the message is an advertisement or solicitation;

2. clearly and conspicuously state that the recipient has the right to opt-out of receiving further commercial e-mail messages from the sender; and

3. provide a valid physical postal address for the senderês business.

[SIZE=4]. [/SIZE]The opt-out notice must include a functioning return e-mail address (or other Internet-based mechanism) that permits the recipient to submit an opt-out request for at least 30 days after the sender transmits the original message.

[SIZE=4]. [/SIZE]Senders have up to 10 business days to process an opt-out request.

[SIZE=4]. [/SIZE]Commercial e-mails to [U]wireless devices[/U] are more restrictive and require recipients to provide express authorization (opt-in) [U]before[/U] the messages are sent. There are several required disclosures that must accompany a request for a recipientês [I]express prior authorization[/I].

[SIZE=4]. [/SIZE]The way to distinguish [U]wireless[/U] from [U]non-wireless[/U] e-mail addresses is to consult a registry of wireless domain names maintained by the Federal Communications Commission. It is available at [U]www.fcc.gov/cgb/policy[/U] (click on –Download Registered Domain Names”).

[SIZE=4]. [/SIZE]There is no [I]established business relationship[/I] exemption to any of these requirements.

[SIZE=4]. [/SIZE]The law also prohibits commercial e-mails from containing false or misleading subject headings and U]any[/U] e-mail from containing false or misleading header or –from” line information.

[SIZE=4]. [/SIZE]Several more important details are provided in a comprehensive summary of the CAN-SPAM Act that is available at [U]www.nada.org/regulations[/U].

The foregoing summary is offered for informational purposes only and [U]is not intended as legal advice[/U]. Consult your attorney for guidance on appropriate measures your dealership must institute to comply with the CAN-SPAM Act and its implementing regulations.

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