FTC Fines Experian $650,000 for CAN-SPAM Act Violations: What Email Marketers Need to Know

In August 2023, the Federal Trade Commission (FTC) charged Experian Consumer Services with violating the CAN-SPAM Act by sending marketing emails to consumers who had no way to opt out. The case resulted in a $650,000 civil penalty and a court-ordered permanent injunction, making it one of the more high-profile CAN-SPAM enforcement actions in recent years.

For email marketers, compliance teams, and anyone responsible for commercial email programs, this case is worth understanding in detail. The violation was not obscure or technical. It came down to something fundamental: consumers were not given a clear, working way to unsubscribe from marketing messages. That is the kind of oversight that can happen at any organization, and the consequences here make clear that the FTC is paying attention.

What Happened: The FTC's Charges Against Experian

Experian Consumer Services, the California-based arm of the global credit reporting company, offers consumers free online accounts to manage their Experian credit report information. These accounts allow people to freeze or unfreeze their credit, check their credit score, and take other steps to protect their financial identity.

According to the FTC complaint filed by the Department of Justice on its behalf, once consumers created these accounts, Experian began sending them commercial emails promoting credit card offers, credit score products, auto-related services, and upsells for paid Experian membership tiers. The problem was not just that these emails were sent. The problem was how Experian handled the opt-out requirement.

The FTC found the following violations:

• The marketing emails did not include a clear and conspicuous notice informing recipients that they could opt out of future commercial messages.
• The emails did not provide a working mechanism, such as an unsubscribe link, that consumers could use to opt out.
• Some emails included language telling consumers they were receiving the message because it "contains important information about your account," which the FTC characterized as misleading, given that the content was purely promotional.
• Even consumers who attempted to update communication preferences were told through the email itself that they would "continue to receive notifications like this one on the status of your account," effectively blocking the opt-out path.

The FTC Complaint and the Role of the Department of Justice

Under the CAN-SPAM Act, civil penalties for violations are enforced through the court system, with the Department of Justice filing complaints on behalf of the FTC. That is what happened in this case. The DOJ filed the complaint, and a federal court entered a permanent injunction alongside the $650,000 civil penalty.

The court-ordered settlement, which took effect after receiving judicial approval, prohibits Experian Consumer Services from sending commercial emails that fail to offer recipients a working opt-out mechanism. The company was also required to implement an Email Preference Center accessible from the bottom of every marketing communication, giving subscribers direct control over the types of messages they receive.

What the CAN-SPAM Act Actually Requires for Commercial Email

The CAN-SPAM Act sets the baseline legal standard for commercial email in the United States. It applies to any message where the primary purpose is advertising or promoting a commercial product or service. Here is what the law requires:

• Every commercial email must include a clear and conspicuous notice that the recipient can opt out of future messages.
• The email must provide a working opt-out mechanism, such as a reply email address or a link to a preference page, that functions for at least 30 days after the message is sent.
• Once a consumer opts out, the sender has 10 business days to honor that request.
• The email must not use deceptive subject lines or misleading header information.
• The email must identify itself as an advertisement if the recipient has not given prior affirmative consent to receive commercial messages.
• The email must include the sender's valid physical postal address.

One important nuance that this case highlights: transactional or relationship emails, such as order confirmations or account security notices, are treated differently under CAN-SPAM. The law does not require opt-out links in those messages. But when an email's primary purpose is commercial, the full opt-out requirements apply, regardless of how the sender characterizes the message.

According to the FTC's own guidance, the agency receives millions of spam complaints each year and actively pursues enforcement actions against companies that fail to meet opt-out requirements. You can review our CAN-SPAM compliance checklist here. 

What This CAN-SPAM Enforcement Action Means for Your Organization

The Experian case is instructive for any organization that sends commercial email, whether directly to consumers or through third-party affiliates and partners. Below are the key takeaways.

CAN-SPAM Compliance Is Not Optional for Any Commercial Email Sender

It does not matter how large or established your organization is. The FTC enforced this penalty against one of the most recognizable names in financial services. Compliance teams at organizations of any size should treat CAN-SPAM requirements as a baseline, non-negotiable standard for every commercial email program.

Opt-Out Mechanisms Must Actually Work

Having an unsubscribe link is not sufficient if that link leads to a broken page, a confusing preference center, or a dead end. The Experian complaint specifically noted that consumers were being told they could update preferences but would still continue to receive the messages. That kind of circular messaging can be treated as a violation in itself. Your opt-out process needs to be straightforward and functional from the moment an email is sent.

Transactional Framing Does Not Shield Commercial Content

One of the more consequential aspects of this case is the FTC's position on how the emails were labeled. Experian characterized the messages as account-related notifications, but the actual content was promotional. The FTC looks at the primary purpose of the message, not the label a company attaches to it. If the email is selling something or promoting a service, it is commercial, and CAN-SPAM applies.

Third-Party and Affiliate Email Programs Carry Real Risk

Many organizations rely on affiliate marketers, co-registration partners, or third-party distribution networks to extend their email reach. In those environments, controlling message content and opt-out mechanisms becomes more complicated. Organizations are generally responsible for ensuring that commercial emails sent on their behalf meet CAN-SPAM standards, even when a third party is doing the sending.

Regulatory Scrutiny of Email Marketing Is Increasing

The FTC has been consistent in signaling that commercial email enforcement is a priority. This case followed a pattern of enforcement actions in which the agency has pushed back against companies that treat opt-out requirements as optional or use misleading framing to avoid compliance obligations. That pattern is worth taking seriously when reviewing your own email practices.

CAN-SPAM Compliance Best Practices for Email Marketing Programs

Whether you are auditing an existing program or building a new one, the following practices help reduce the risk of a CAN-SPAM violation:

• Include a clearly visible unsubscribe link in every commercial email, placed in a location recipients can easily find.
• Honor opt-out requests within 10 business days and ensure your list management processes reflect those removals accurately.
• Conduct regular audits of your email templates to verify that opt-out mechanisms are functional and not broken by template updates or technical changes.
• Review the primary purpose of each email type in your program. If the message promotes a product, service, or offer, treat it as commercial regardless of other account-related content it may contain.
• Document your opt-out processes and maintain records that demonstrate compliance, particularly if you work with affiliate senders or third-party networks.
• If you use a preference center, test the full opt-out workflow regularly to confirm it works as intended across devices and email clients.

The Competitive Case for Strong Email Compliance

Beyond the legal and regulatory risk, there is a practical business reason to take CAN-SPAM compliance seriously. Email list quality, sender reputation, and deliverability are directly affected by how well an organization manages its opt-out and consent practices. High complaint rates, spam trap hits, and blocklist appearances can all trace back to inadequate list hygiene and non-compliant email practices.

Consumers who cannot easily opt out of commercial messages they do not want are more likely to mark those messages as spam. That hurts deliverability for the messages you actually want recipients to see. Building compliant, permission-based email programs is not just a legal requirement. It tends to produce better engagement, better inbox placement, and stronger long-term sender reputation.

How LashBack Helps Organizations Stay CAN-SPAM Compliant

The Experian case is a clear example of how an email compliance gap can go undetected until it becomes an enforcement matter. LashBack builds tools that help organizations see what is actually happening across their commercial email ecosystem before it reaches that point.

LashBack's ComplianceMonitor automatically scans branded email content sent through affiliate and partner networks, flagging messages that are missing required opt-out links, using misleading subject lines, or falling outside of your compliance standards. For organizations that rely on third-party senders, that kind of visibility is hard to replicate manually and nearly impossible to scale without dedicated technology. LashBack also offers a free CAN-SPAM compliance checklist to help marketing and compliance teams build programs that meet the law's requirements from the start. If you want to see how the platform works in practice, request a demo here!