# 12 - Email Marketing Regulation Rules in Europe and USA
GDPR VS CAN-SPAM
Read time: 5 min.
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Summary
Introduction
Understanding Email Marketing
The General Data Protection Regulation (GDPR)
The CAN-SPAM Act
Comparing GDPR and CAN-SPAM
Conclusion
Introduction
In the digital age, email marketing has become a powerful tool for businesses to reach and engage customers.
However, with great power comes great responsibility.
Regulations have been put in place in different regions worldwide to protect consumers from spam and privacy violations.
In this article, we will delve into the intricacies of email marketing regulation rules in Europe, governed by the General Data Protection Regulation (GDPR), and in the USA, regulated by the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM).
Understanding Email Marketing
Before we dive into the regulations, it's crucial to understand what email marketing entails.
Email marketing is a form of direct marketing that uses electronic mail to communicate commercial or fundraising messages to an audience.
It's an effective way to build relationships with prospects, leads, current customers, and even past customers.
The General Data Protection Regulation (GDPR)
What is GDPR?
The GDPR is a regulation enacted by the European Union (EU) in 2018 to protect EU citizens' privacy and personal data.
It applies to all businesses that process the personal data of individuals residing in the EU, regardless of the company's location.
Key Principles of GDPR
“Contrary to popular belief, the EU GDPR (General Data Protection Regulation) does not require businesses to obtain consent from people before using their personal information for business purposes”
The GDPR is built around several fundamental principles:
1. Lawfulness, fairness, and transparency: Data must be processed lawfully, fairly, and transparently.
2. Purpose limitation: Data must be collected for specified, explicit, and legitimate purposes.
3. Data minimization: Only the necessary data for the stated purpose should be collected.
4. Accuracy: Data must be accurate and kept up to date.
5. Storage limitation: Data should be kept only as long as necessary.
6. Integrity and confidentiality: Data must be processed in a way that ensures its security.
The Role of Consent in B2B Prospecting
Under GDPR, the data controller must be able to demonstrate that the data subject has consented to their data processing. This can be a tricky area in B2B prospecting. For example, if a person gives you their business card, you have no proof of their consent to contact them.
However, the GDPR does not seem to stop you from contacting this prospect.
Instead, it'd require you to ensure that your approach respects the rights and interests of the data subject.2
More to read about the “legitimate interest” definition in the recital 47 from GDPR.3
The CAN-SPAM Act
What is CAN-SPAM?
The CAN-SPAM Act is a law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have businesses stop emailing them, and spells out tough penalties for violations.
Key Requirements of CAN-SPAM
The CAN-SPAM Act outlines several requirements for commercial emails:
1. Don't use false or misleading header information: The "From," "To," "Reply-To," and routing information must be accurate and identify the person or business who initiated the message.
2. Don't use deceptive subject lines: The subject line must accurately reflect the content of the message.
3. Identify the message as an ad: The law gives leeway on how to do this, but the message must be identifiable as an advertisement.
4. Tell recipients where you're located: The message must include a valid physical postal address.
5. Tell recipients how to opt out of receiving future emails: The message must clearly explain how to opt-out.
6. Honor opt-out requests as soon as possible: Opt-out requests must be processed within ten business days.
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Comparing GDPR and CAN-SPAM
While both GDPR and CAN-SPAM aim to protect consumers and regulate email marketing, they differ in several ways:
1. Scope: GDPR applies to any data collected from EU citizens, while CAN-SPAM applies to commercial emails sent to consumers in the USA.
2. Consent: Under GDPR, explicit consent is not required before sending marketing emails. CAN-SPAM does not require prior consent, but recipients must be able to opt out.
3. Penalties: GDPR penalties can reach up to €20 million or 4% of the company's global annual turnover, whichever is higher. CAN-SPAM penalties can reach up to $43,280 per violation.
Conclusion
Navigating the world of email marketing regulations can be complex, but businesses must comply with these laws to maintain trust and avoid hefty penalties.
Whether operating in Europe under the GDPR or in the USA under the CAN-SPAM Act, the key is to respect customers' privacy and provide transparency in all communications.
By doing so, businesses can leverage the power of email marketing while ensuring they uphold the rights of their customers.
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https://gdpr.eu/gdpr-consent-requirements/#:~:text=Contrary%20to%20popular%20belief%2C%20the,Article%206%20of%20the%20GDPR.
https://www.dropcontact.com/fr-blog/rgpd-prospection-b2b
https://www.privacy-regulation.eu/en/recital-47-GDPR.htm