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 of 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 customer’s personal data to avoid serious data breaches.
CAN-SPAM ACT and 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 list. 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 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 the 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 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 – sender cannot provide misleading information in the subject line. The subject line content must match with email content to avoid the violation of CAN-SPAM ACT.
- It’s mandatory to offer 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 sender’s mailing address – This rule forces sender to mention the purpose of email and postal address. So that it helps 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 the spam rates.
GDPR and its importance in business
GDPR leaves substantial impact over the businesses that deals with EU citizen’s personal data for business benefits. It was enforced by the European Union to provide secure transaction of European citizens’ personal data with in 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 is not misused.
Actually prior to invasion of Internet and new technologies, Europe incorporated Data Protection Directive law to define the rules for information management system. 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, 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 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 user’s 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 level 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 of the third party businesses. On the other side, unfortunately due to technical errors or misuse of the customer data has led 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 full privilege to the email recipient to receive only relevant emails from the sender.
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 in 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 of 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.