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Email Compliance for Affiliate Marketing
What’s new and what you need to know
Morgan Simon
Morgan Simon
Marketing Manager,
Client Services
Sales,
Client Services

Morgan Simon
Independent Consulting

Ecommerce Strategy,
Affiliate Program
Implementation + Optimization
The Basics of Email Compliance
CAN SPAM Act of 2003
 An opt-out law with modest
requirements
 Primarily enforced by the FTC

What it Really Means




 Understanding the distinction
between commercial and
transactional messages




 All emails must contain valid
opt out mechanism, an be
honored within 10 days





Don’t use false or misleading
email headers ever!
Avoid deceptive subject lines
Identify your message as an
advertisement
Provide a valid physical address
Make it easy for recipients to
opt-out of future messages
Honor opt-out requests
promptly
Carefully monitor your
employees, affiliates, and subcontractors
The Basics (Continued)
FTC Act
• The FTC Act prohibits “unfair” and
“deceptive” acts or practices
• Unfairness
 Substantial consumer injury
 Not reasonably avoidable
 Not outweighed by benefits to
consumers or competition

• Deception
 Material representation or omission
 Likely to mislead consumers acting
reasonably under the circumstances

• Sender
▫ If the designated sender fails to comply
with its obligations, the other parties
can be held accountable

What does the FTC do?
• The nation’s primary spam
enforcer
• 95 spam cases filed by the FTC
since 1997
 Targets run the gamut from
publicly-traded companies to
pill and porn spammers
 Defendants face civil
penalties, disgorgement of
assets, and injunctive relief
• www.ftc.gov/spam
The Cost of Compliance
Conduct

Representative Case

Outcome

Deceptive subject line

U.S. v. ValueClick

$2.9 million
penalty

Sexually explicit images
without label

U.S. v. BangBros.com

$650,000 penalty

False headers

FTC v. Atkinson

> $19 million in
judgments

No physical address in
message

FTC v. Sili
Neutraceuticals

$2.5 million
judgment

No unsubscribe
mechanism

U.S. v. Kodak Imaging
Network, Inc.

$26,000 penalty

Deceptive message body

FTC v. International
Research and
Development

$15.8 million
judgment
What’s New: International Laws
What’s New: International Laws
Canada’s Anti Spam Legislation
 Moderates commercial electronic messages – “any electronic
message that encourages participation in a commercial activity,
regardless of whether there is an expectation of profit.”
 General rule is that the sender will need to obtain consent from
the recipient before sending the message and will need to
include information that identifies the sender and enables the
recipient to withdraw consent.
 Once in effect, Canada’s anti-spam laws will set the rules
regarding consent (as opposed to the Personal Information
Protection and Electronic Documents Act.)
 The act was passed in 2010 and will go into effect July 1, 2014.
What’s New: Going Beyond Compliance
 Double Opt In: ALWAYS the best choice
 Smart Marketing
 Opt outs for Sender AND Advertiser

 Deliverability
 Responsive Email Designs (Result in decreased deletion and
unsubscribes)
 List Segmentation (For legal and performance reasons)
 Conduct Internal Audit
What should you do as an affiliate/ a company
that does third party email acquisition?
 Be aware. Know the jurisdictions and laws for all
countries you are doing business in.
 Give your readers a VERY clear opt out mechanism.

 Use the tools advertisers provide – scrubbing lists, etc.
 Your email header should match your real domain
name.
 Email subject lines should be relevant to email content.
 Monitor your program
 Brush up on new laws quarterly
Questions? Let’s Connect.
Email: morgan@unsubcentral.com
morgan.b.simon@gmail.com
Phone: 512-857-7303
LinkedIn: linkedin.com/in/morgansimon
Attending SXSW or AdTech SF? Shoot me an email.

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Email Compliance for Affiliate Marketing

  • 1. Email Compliance for Affiliate Marketing What’s new and what you need to know Morgan Simon
  • 2. Morgan Simon Marketing Manager, Client Services Sales, Client Services Morgan Simon Independent Consulting Ecommerce Strategy, Affiliate Program Implementation + Optimization
  • 3. The Basics of Email Compliance CAN SPAM Act of 2003  An opt-out law with modest requirements  Primarily enforced by the FTC What it Really Means     Understanding the distinction between commercial and transactional messages    All emails must contain valid opt out mechanism, an be honored within 10 days   Don’t use false or misleading email headers ever! Avoid deceptive subject lines Identify your message as an advertisement Provide a valid physical address Make it easy for recipients to opt-out of future messages Honor opt-out requests promptly Carefully monitor your employees, affiliates, and subcontractors
  • 4. The Basics (Continued) FTC Act • The FTC Act prohibits “unfair” and “deceptive” acts or practices • Unfairness  Substantial consumer injury  Not reasonably avoidable  Not outweighed by benefits to consumers or competition • Deception  Material representation or omission  Likely to mislead consumers acting reasonably under the circumstances • Sender ▫ If the designated sender fails to comply with its obligations, the other parties can be held accountable What does the FTC do? • The nation’s primary spam enforcer • 95 spam cases filed by the FTC since 1997  Targets run the gamut from publicly-traded companies to pill and porn spammers  Defendants face civil penalties, disgorgement of assets, and injunctive relief • www.ftc.gov/spam
  • 5. The Cost of Compliance Conduct Representative Case Outcome Deceptive subject line U.S. v. ValueClick $2.9 million penalty Sexually explicit images without label U.S. v. BangBros.com $650,000 penalty False headers FTC v. Atkinson > $19 million in judgments No physical address in message FTC v. Sili Neutraceuticals $2.5 million judgment No unsubscribe mechanism U.S. v. Kodak Imaging Network, Inc. $26,000 penalty Deceptive message body FTC v. International Research and Development $15.8 million judgment
  • 7. What’s New: International Laws Canada’s Anti Spam Legislation  Moderates commercial electronic messages – “any electronic message that encourages participation in a commercial activity, regardless of whether there is an expectation of profit.”  General rule is that the sender will need to obtain consent from the recipient before sending the message and will need to include information that identifies the sender and enables the recipient to withdraw consent.  Once in effect, Canada’s anti-spam laws will set the rules regarding consent (as opposed to the Personal Information Protection and Electronic Documents Act.)  The act was passed in 2010 and will go into effect July 1, 2014.
  • 8. What’s New: Going Beyond Compliance  Double Opt In: ALWAYS the best choice  Smart Marketing  Opt outs for Sender AND Advertiser  Deliverability  Responsive Email Designs (Result in decreased deletion and unsubscribes)  List Segmentation (For legal and performance reasons)  Conduct Internal Audit
  • 9. What should you do as an affiliate/ a company that does third party email acquisition?  Be aware. Know the jurisdictions and laws for all countries you are doing business in.  Give your readers a VERY clear opt out mechanism.  Use the tools advertisers provide – scrubbing lists, etc.  Your email header should match your real domain name.  Email subject lines should be relevant to email content.  Monitor your program  Brush up on new laws quarterly
  • 10. Questions? Let’s Connect. Email: morgan@unsubcentral.com morgan.b.simon@gmail.com Phone: 512-857-7303 LinkedIn: linkedin.com/in/morgansimon Attending SXSW or AdTech SF? Shoot me an email.