Regulatory Alert: FTC Enforces CAN-SPAM Act with Record-Breaking $2.95 Million Penalty

The Federal Trade Commission (FTC) has issued a statement charging a security camera company with multiple violations of the CAN-SPAM Act. Here is a summary of the CAN-SPAM compliance violation charges brought forth by the FTC:

  • The company violated the CAN-SPAM Act by sending an excessive amount of commercial email that failed to include an option to opt-out or unsubscribe
  • The company failed to honor previous opt-out requests from recipients
  • The emails lacked a physical postal address

Actions:

  • The FTC has ordered the company to pay a monetary penalty of $2.95 million for their violations of the CAN-SPAM Act, the most significant penalty ever obtained by the FTC for such a violation
  • The proposed order also prohibits the company from further violating the CAN-SPAM Act, requiring them to include an unsubscribe option in future emails
  • The company, while not agreeing with the FTC’s allegations, has accepted the terms of the settlement

What does this mean for your organization?

The FTC’s actions have several implications for organizations, particularly those engaged in email marketing and customer communication:

  • Compliance with the CAN-SPAM Act: Organizations need to ensure that their email marketing practices comply with the CAN-SPAM Act. This includes providing a clear and conspicuous way for recipients to opt out of future marketing messages.

  • Clear Opt-Out Mechanisms: Organizations must implement user-friendly opt-out mechanisms in their marketing emails. Recipients should easily find a way to unsubscribe from further communications, and the process should be hassle-free. Neglecting to provide this option can not only lead to legal consequences but also damage the organization's reputation.

  • Honoring Opt-Out Requests: All opt-out and unsubscribe requests must be honored within 10 days of receipt. Any opt-out mechanism used in emails must be able to process requests for at least 30 days after the message is sent. 

  • Legal Consequences: This case reminds us that regulatory bodies like the FTC actively monitor and enforce compliance with consumer protection laws. Organizations that violate these laws can face significant financial penalties and legal actions.

How LashBack can help

LashBack provides organizations with the tools they need to automatically detect and remediate branded email content that is non-compliant with the CAN-SPAM Act, including emails that are missing unsubscribe links.

Interested in learning more? Request a demo here!

We’ve also developed a free CAN-SPAM compliance checklist that you can use to help craft CAN-SPAM-compliant email content. Download it here!

Related Posts

A unique, time-tested solution that addresses a critical need for advertisers, agencies, and networks.

Request demo

Business Woman