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Importance Of CAN-SPAM ACT & GDPR For Business Policy

August 21, 2018
1:16 AM

Leading MNCs like Microsoft, Google, Facebook, and LinkedIn deal with crucial information of the end-users. They use this data in multiple ways to meet their business goals. Any sort of negligence, unofficial access to these data sets can impair their business growth as well as user’s life.

To avoid such mishaps these leading MNCs and small businesses include a few data protection regulations in their business policy. Basically, these data protection regulations place a few constraints on the usage of customers’ personal data to avoid serious data breaches.

CAN-SPAM ACT & its importance in business

During the era of email marketing campaigns, recipients were annoyed with the filled-in boxes, this provoked them to categorize the received advertising emails into spam lists. In fact, this resulted in a drastic effect on the marketing campaigns. Thus, the U.S Nation’s consumer protection agency named Federal Trade Commission (FTC) enforced the CAN-SPAM ACT (Controlling the Assault of Non-Solicited Pornography and Marketing) ACT to help the marketers and email recipients.

CAN-SPAM ACT is a law that initiates a set of rules for commercial email and messages. Basically, it offers privileges to the recipients to stop the emails or messages received from annoying sources. This reduces the chances of advertising emails getting categorized as spam. And it even helps recipients to figure out the penalties for those who violate the law.

Following are the rules to be followed by email marketing companies to avoid massive penalties and deterioration of the company’s image in the global market.

Forbid misleading or false header information – In the commercial sector, the email sender has to include accurate details in the fields like- to, from and domain name, so that the receiver can know more about the source of the received commercial email.
Does not support deceptive subject lines – the sender cannot provide misleading information in the subject line. The subject line content must match with email content to avoid the violation of the CAN-SPAM ACT.
It’s mandatory to offer an opt-out method for the email recipients – In this scenario, marketers have to promptly offer an option for the receiver to stop getting emails. Else they can provide a list of options to the recipients. This helps recipients to avoid getting certain types of emails in which they are not interested. So that marketers can avoid being a part of the spam list in the recipient’s inbox.
Commercial email should specify that it’s an advertisement and include the sender’s mailing address – This rule forces sender to mention the purpose of email and postal address. So that it helps the recipient to decide whether it is necessary to get the same type of email or opt-out.

Importance of CAN-SPAM ACT for business policy

In the U.S, Companies that indulged in violation of this policy will be charged with the penalty of $16000 per message. Companies can avoid such penalties by implementing CAN-SPAM ACT in business policy.
Companies that include the requirements of the policy will definitely help them to earn a reputation and reduce spam rates.

GDPR & its importance in business

GDPR leaves a substantial impact on the businesses that deal with EU citizens’ personal data for business benefits. It was enforced by the European Union to provide secure transactions of European citizens’ personal data within their states. This law is not limited to European businesses that use citizens’ personal data to expand their business. In fact, it is applicable for all the businesses across the globe that use EU citizens’ personal data to advertise their goods and services in EU territories.

Basically, this data protection regulation will ensure that a user’s personal data like email address, phone number, job title are protected and even their updates on social media sites like Facebook and LinkedIn are not misused.

Actually, prior to the invasion of the Internet and new technologies, Europe incorporated Data Protection Directive law to define the rules for the information management systems. Unfortunately, this law failed to protect the privacy of European citizens in the digital age, as the transactions were held through electronic mode.

Many businesses inferred their own thoughts from the directive, as its scope and penalties were weak. To avoid such consequences, the EU union introduced GDPR which could blend rules and introduce strict rules with high penalties. Eventually, it ensures that EU citizens have the privilege to protect their personal data across Europe.

Significance of GDPR for business policy

In this digital world, many companies deal with the processing of users’ personal data to advertise their products or services. Moreover, managing the privacy of the users is the actual challenge of any company. In this case, businesses can use GDPR, as it is detailed and precise in certain areas and deals effectively with data privacy-related issues.
Companies that use personal data for business benefits, have to document the complete process of usage of customer details, provide information on security measures, and so on. Hence, these companies can use data protection regulations like GDPR which is well-known for its detailed transparency in dealing with users’ personal data.
It is mandatory for all the businesses that aim to market any type of services or products in Europe must implement this regulation in their business policy. Else, depending on the level of non-compliance with the GDPR they have to pay high penalties like two percent of annual global turnover or an amount close to 10 million Euros. Moreover, for higher levels of data breaches businesses may have to pay around four percent of annual global turnover or 20 million Euros whichever is higher.

Today, many businesses use the personal data of users to directly market their products or services as it helps them in reaching potential customers on time without any interference from third-party businesses. On the other side, unfortunately, due to technical errors or misuse of customer data have led to serious data breaches.

So, to avoid such data breaches, certain governing bodies have introduced few data protection regulations like GDPR. In addition to this, email regulation laws like CAN-SPAM ACT LAW offers the full privilege to the email recipient to receive only relevant emails from the sender.

Conclusion

In forthcoming years, marketers need to incorporate these regulations to earn a reputation and set a remarkable position in the global marketing world. Since the incorporation of GDPR will help them maintain transparency while processing and controlling users’ personal data. In addition to this, the CAN-SPAM ACT will guide them to conduct a productive email marketing campaign.

Moreover, we at DataCaptive, understand the importance of customer data protection as well as the need for high-yielding email marketing campaigns. Hence, we incorporate data protection regulations like GDPR and CAN-SPAM ACT to restore the privilege of user data and yield in a productive email marketing campaign.

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Shelly Andrews

Shelly Andrews is a content writer, she is associated with DataCaptive to deliver blogs on business and Data management Solutions. Her areas of interest include marketing, sales, digital marketing, and related domains.

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