Commercial email is one of the most significant -- if not the most significant -- marketing tool of small ecommerce websites.

For this reason, it's a good idea to stay current with the CAN-SPAM Act's email rules. In May, the Federal Trade Commission (FTC) approved several new rules for purposes of clarifying CAN-SPAM's requirements.

Here's a summary of these important developments that affect all ecommerce websites.

One issue under CAN-SPAM was whether all parties in a multi-party email would be required to comply with CAN-SPAM.

Under the new rules, multiple parties participating in a single commercial email may designate a single party as the "sender", provided that the designated party:

• meets the definition of a "sender";
• is the only party designated in the "from" line; and
• fully complies with the requirements of the CAN-SPAM Act.

By focusing on the "from" line, the new rule represents a relatively pragmatic solution that is generally favorable to most joint, commercial email campaigns. However, one important trap for the unwary is that if the designated sender does not comply with CAN-SPAM (i.e. identifying the email as an ad or solicitation, including a physical or post office address, and handling opt-outs), all marketers in the email message will be held liable as senders.

The new rules streamlined the opt-out process for commercial email.

The new rules make it clear that email marketers can not require opt-outs:

• to pay a fee for a right to opt-out";
• to provide personally identifiable information other than an email address; and
• to take any steps other than visiting a web page or sending a reply email.

In addition, sales pitches prior to honoring an opt-out request are clearly unacceptable.

"Send-to-a-friend" emails are fairly common, especially with email newsletters. The FTC made an important distinction between send-to-a-friend emails where the marketer merely request the recipient to send to a friend and those emails where any form of consideration is offered -- such as money, awards, prizes, coupons, or discounts).

If any form of consideration is offered (the amount is irrelevant), then the seller who requested the forwarding of the email must comply with CAN-SPAM requirements. If no consideration is offered, then the seller need not comply with CAN-SPAM; however, it's recommended that the seller comply in any event.

The new rules were the final result of approximately 3 years of consideration of the issues. Many of the suggestions along the way were more burdensome on commercial emailers. However, the prevailing view apparently was that the final rules provide clear guidance so that the reputable email marketers would not be unreasonably restricted.

Copyright © 2008 Chip Cooper

This article is provided for educational and informative purposes only. This information does not constitute legal advice, and should not be construed as such.

WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEBSITE? You may, as long as you reprint the article in its entirety with live links and include this blurb with it:

Leading Internet, IP and software lawyer Chip Cooper has automated the process of selecting and drafting website documents for small websites with his MyLegalFirewall website documents drafting service. Discover how quick, easy, and cost-effective it is to determine which legal compliance documents you need and to draft them online. Grab your FREE Special Reports, Determine Which Legal Documents Your Website Really Needs, Draft Your Own Website Privacy Policy, and Write Your Own Website Marketing Copy – Legally, at ==> http://www.digicontracts.com/