How GDPR and CAN-SPAM Affect Email Marketing in the US

If you are into email marketing, I am sure you have heard the terms like GDPR and CAN-SPAM. But do you know the meanings behind both, especially for your campaigns? Let us break it down in such a way that it becomes easy to digest for you (and keep your emails out of the spam folder).

What is the CAN-SPAM Act?

The CAN-SPAM Act is the law from the USA for email marketing compliance. You need to be careful about the following things to stay legally compliant:

Do not use subject lines which mislead the recipients.

Identify your email as an advertisement.

Physical postal address.

Provide an easy way to unsubscribe to your recipients.

Opt-out requests would be honored within 10 days.

To non-compliance, a penalty of $46,517 per email could be imposed. Ouch!

Why CAN-SPAM Matters for Marketers

CAN-SPAM isn't just about the monetary fines; it's arguably more about keeping one's reputation intact. The emails that are compliant with these rules get fewer spam complaining notices, making them reach the audience. In addition, it certainly creates a great deal of trust between the subscribers and the brand.

GDPR US Email Marketing

However, unlike CAN-SPAM, which applies to emails when sent within the USA, GDPR is a pan-European law that applies to any company that collects or keeps data on EU citizens. And if a European subscriber happens to be part of a US-based business, it means that this company, too, has to conform to the rules of the GDPR.

Key rules for GDPR:

Consent-you can send no email without prior, explicit consent from the user (pre-checked boxes invite trouble!).

Users can access, delete, or modify their data.

Data protection; strong protections to prevent breaches.

The Big Difference: Opt-In vs. Opt-Out

The main difference is that under the GDPR, one has to ask permission to send an email as opposed to an automatic opt-out as under CAN-SPAM.

CAN-SPAM requires businesses to send emails unless specified opting out.

Under the GDPR, businesses must first get explicit opt-in consent before sending any marketing emails.

So if you are considering marketing to EU citizens, you better get that clear, affirmative permission from the data subject before hitting "send."

A Case in Point: How Non-Compliance Can Have Adverse Effects 

Amazon has become the latest poster child for incidents of non-compliance with data protection laws: it suffered an $877 million fine in 2021 under the GDPR regulation itself. Google and Yahoo have had their own CAN-SPAM moment and were similarly chastised for confusing email practices. If the big guys can get busted, so too can smaller businesses!

Smaller businesses also have been fined. One e-commerce store based in the US faced penalties of a few thousand dollars for neglecting to include an unsubscribe link in its marketing emails. Such penalties can cripple small businesses financially.

Key Takeaways

• CAN-SPAM governs email marketing in the USA; GDPR applies to companies across the world dealing in data from the EU. 

• According to CAN-SPAM, the sender must be clear, there must be no misleading content, and opting out has to be an easy process.

• The GDPR demands clear consent and good protection of private data.

• Letting either of these laws flagrant violations would lead to towering fines and reputational damage.

• Some best practices, particularly adherence to double opt-in and clear privacy policy statements, are strong pointers toward complying with these two sets of laws.

Conclusion

Email marketing rules are complicated in the USA yet must be understood, particularly the CAN-SPAM Act and GDPR, for a bright future. Abiding by the rules keeps you out of court but also helps you win your audience's trust and increase credibility. By having best practices in place such as proper opt-in, unsubscribe options, and proper data protection, you ensure that your email marketing strategy continues to be effective, compliant, and respected.

Following US email compliance laws such as CAN-SPAM Act and GDPR is not just punitive-not-scenarios; it's about earning your audience's trust. Play by the rules, and email marketing will be good for you.

FAQ’s

Does CAN-SPAM govern transactional emails?

No,CAN-SPAM applies mainly to promotional emails. Transactional emails do not need an opt-out. 

What happens if I violate the GDPR? 

Fines can go as high as €20 million or 4% of your global revenue, whichever is higher.

Do I need a different opt-in for GDPR and CAN-SPAM? 

Yes! CAN-SPAM allows opt-out while GDPR demands opt-in consent. If you have subscribers in the EU, comply with the stricter rules of GDPR purpose.

Can I send marketing emails to purchased lists in the USA?

Absolutely, but it is risky. The CAN-SPAM Act does not say anything as to whether purchased lists may or may not be used; the GDPR forbids this without opt-in consent altogether. 

What is the best way of making sure you stay on the right side of the law?

Double-opt-in for the GDPR, making it very easy for people to unsubscribe, and maintaining records of who has opted in. Clean that email list regularly.