CAN-SPAM Overview

 

In response to the increase in the amount of unsolicited commercial E-Mail or “spam”, Congress enacted the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, better known as the “CAN-SPAM Act”The CAN-SPAM Act became effective on January 1, 2004 and applies broadly to all commercial E-Mail messages, not just the unsolicited advertising that most people think of as spam. The CAN-SPAM Act does not ban spam but instead sets forth requirements for the transmission of any commercial E-Mail, including newsletters and wireless messaging.

 

Violation of the CAN-SPAM Act can result in stiff penalties: liquidated damages of up to $250 per violation (that is, per E-Mail) with a damage cap of $2 million for non-willful acts and a cap of $6 million for conduct that is “willful and knowing” or when any of the aggravated violations is present. The CAN-SPAM Act also establishes criminal penalties of up to 5 years in prison for offenses such as falsifying header information, fraudulent representation, unauthorized access to and use of a computer for the purpose of transmitting multiple commercial E-Mail messages, and fraudulently relaying such messages.

 

The rules apply to any person initiating the E-Mail, either by sending the E-Mail directly or by directing another person or company to send the E-Mail on their behalf.  Thus, these rules are applicable even if you out-source your E-Mail advertising to another company (which describes the Agent to LPSREG relationship). In such case, you are responsible for your vendors’ compliance with the requirements of the CAN-SPAM Act.

 

The Eight CAN-SPAM Requirements and How Paragon Meets Each Condition

 

1. Accurate Header and Sender Information.

The “To” and “From” and routing information, including the originating domain name and E-Mail address, must be accurate and you must accurately identify the person who initiated the E-Mail.  You do not have to identify the sender by name but instead can accurately reflect the sender’s title or department.

Paragon Solution:

The following information has been added to the X-header of outgoing E-Mails from Paragon:

In addition, agent E-Mail addresses in Paragon will be verified to ensure that the “From” address is correct. This will occur the first time an agent sends an E-Mail from Paragon. An E-Mail will be triggered to the “From” address (the agent’s E-Mail address). The E-Mail will contain verbiage for the agent to confirm their E-Mail address by clicking on a link inside the body of the E-Mail. The agent will have 30 days to complete this process. Once the verification is complete, their address will be added to a “whitelist” of approved E-Mail addresses. If the E-Mail is not confirmed, the address will be placed on a “blacklist” on the 31st day and the agent will no longer be able to send E-Mails from Paragon.

 

 

2. Notice that the E-Mail is an Advertisement.

The message must contain a clear and conspicuous notice that it is an advertisement or solicitation. You are no longer required by law to put the notice in the subject line but should put the notice in the beginning of the E-Mail if it is not in the subject line.

Paragon Solution:

A notice has been added at the very top of the E-Mail body: “Notice: The following E-Mail could be considered as an advertisement under federal law.”

 

 

3. Accurate Subject Line.

The subject line cannot mislead the recipient about the contents or subject matter of the message.

Paragon Solution:

The default text in the subject line of automatic prospecting E-Mails has been changed from “Automatic E-mail Notification For ______” to read “Real Estate Listing Notification For _______” to add clarity to the subject line of these E-Mails.

 

 

4. Valid Postal Address.

The message must include the sender’s valid physical business address to which the U.S. Postal Service delivers the sender’s mail.

Paragon Solution:

The agent’s office postal address has been added to the X-header of all outgoing E-Mails. It is imperative that the physical addresses for offices are not blank in Paragon. If the address is blank and an agent from that office tries to send an E-Mail, they will receive an error message that the address is blank and that they need to contact their MLS/Board Admin to resolve the issue. In addition, an E-Mail will automatically be sent to the MLS informing them of the issue. Once the address has been added to Paragon, the agent will be able to send E-Mails.

 

 

5. Notice of Right to Opt-Out of Future E-Mails.  

The message must inform the recipient of the right to opt out of receiving more commercial E-Mail from the sender’s company.

Paragon Solution:

We have added the following tag to the bottom of every outgoing E-Mail from Paragon: “If you prefer not to receive real estate listing information and updates via E-Mail, click here.” Clicking on the link will take the recipient to a web page where they can opt out of receiving E-Mails from the specific agent or any E-Mails from the Paragon system.

 

 

6. Opt-Out Mechanism.  

The message must provide a return E-Mail address or another Internet-based response mechanism that allows a recipient to ask the sender not to send future E-Mail messages to that E-Mail address.  The opt-out mechanism must be able to process opt-out requests for at least 30 days after the date that the E-Mail was sent.  You may create a “menu” of choices to allow a recipient to opt-out of certain types of messages, but you must also include the option to end all commercial messages from the sender.  You cannot require the recipient to provide any information other than the relevant E-Mail address and opt-out preference, or take any steps other than sending a reply E-Mail message or visiting a single Internet web page.

Paragon Solution:

LPSREG has implemented a web site for opting out of E-Mails from the agent or from all of Paragon. After clicking on an opt-out link in the E-Mail, a new browser window will launch with opt-out options. After making their selection, a confirmation E-Mail is sent to the recipient containing a link to the Opt-In page in the event that the client has a change of heart or did not mean to opt out.

 

 

7. Honor the Opt-Out Request.  

After receipt of an opt-out request, the law currently gives the sender 10 business days to stop sending commercial E-Mail to the requester’s E-Mail address.  However, the Federal Trade Commission is currently considering shortening the requirement to 3 business days.

Paragon Solution:

The opt-out request is immediate after the recipient makes their selection on the Opt-Out page and clicks the Update button.

 

 

8. Limit Your Message to the Fidelity Business You Represent.  

Your E-Mail should limit its message to the particular LPSREG company and business line that you represent and not speak for the parent corporation or any other divisions, affiliates or lines of business.

Paragon Solution:

This requirement does not apply to Paragon since LPSREG does not generate any E-Mails that include reciprocal information about our parent company.