CAN-SPAM Regulatory Resource Center
“Obligation to Monitor and Resolve”
What exactly does the government expect of my email marketing program?
In "Sender Liability for Practices of Affiliates or Other Similar Entities" from
page 25,431 Section (2) of the
Federal Register Vol. 70, No. 91 Thursday May 12, 2005, the FTC states
the regulation regarding liability for third parties. It is important to note
that the implication is that a company’s own sending is compliant as well as
their partners, vendors and affiliates.
“Some commenters asked the Commission [FTC] for a ruling that content providers
are not responsible for email messages advertising their product or service if
the messages are sent by affiliates or other third parties over which they have
no control. (61) The Commission declines to issue so broad a statement-
especially because, in other contexts, it has specifically held sellers liable
for the actions of third party representatives if those sellers have failed to
adequately monitor the activities of such third parties and have neglected to
take corrective action when those parties fail to comply with the law. The
commission believes it inappropriate to excuse content providers in advance
from the obligation to monitor the activities of third parties with whom they
contract.”
What problems am I avoiding by developing a comprehensive compliance process
for my email marketing program?
1. FTC Fines and Penalties- Enforcement Actions
2. Private Lawsuits
3. Consumer Complaints
4. Opt-Outs
5. Poor Reputation
6. Low Deliverability
7. BlackLists
LashBack clients decrease their exposure to liability for private lawsuits and
FTC enforcement actions to the extent they utilize our vast resources to
enforce CAN-SPAM and best practice compliance. Everyone has issues- how and
when the issues get resolved is the key. Like us, the FTC sees violations
everyday and from settled cases we can see the pattern of enforcement actions
taken and as the industry matures the bar is being raised. A major part of the
LashBack service is ensuring our clients understand the ever-evolving
guidelines of the CAN-SPAM Act as enforced by the FTC.
Recent changes in Washington, DC could mean a more activist FTC. LashBack is a
member of the ESPC, Email Sender and Provider Coalition, which along with the
DMA, Direct Marketing Association and MAAWG, Messaging Anti-Abuse Work Group
monitor and lobby for pro-marketer legislation and fair rulemaking that also
protects consumers.
FTC Fines and Penalties
Lawsuits and Consumer Complaints
The Federal Trade Commission actively targets email marketers through seeding
and investigation of actual consumer complaints. They receive over 300,000
emails per day from consumers.
Recently an ESP or Email Service Provider with a good reputation in the industry
was targeted by the FTC, tracked over a period of months and served with a
Failure to Honor violation. The company
settled for a fine of just over $50,000 for Failure to Honor
unsubscribes.
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