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Practical Solutions To Internet Marketing Legal Compliance, pt 2


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These leaders of the Legal Compliance Industry will offer you practical solutions you can implement daily into your business model creating a total compliance package.

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Practical Solutions To Internet Marketing Legal Compliance, pt 2

  1. 1. Practical Solutions to Legal Compliance The Email Compliance Authority Email Compliance for Affiliate Marketing James O’Brien Director of Marketing 314.754.1795 [email_address]
  2. 2. CAN WHAT? <ul><li>What Is the CAN SPAM Act? </li></ul><ul><ul><li>The C ontrolling the A ssault of N on- S olicited P ornography A nd M arketing Act of 2003 (introduced as Senate bill 877) </li></ul></ul><ul><ul><li>The first federal piece of legislation specifically addressing and affecting email marketing messages </li></ul></ul><ul><ul><li>Pre-empts State Laws </li></ul></ul><ul><ul><li>Enforced by the Federal Trade Commission </li></ul></ul><ul><ul><li>Has established specific requirements which all commercial email messages must adhere to </li></ul></ul><ul><ul><li>Enforced since January 1, 2004 </li></ul></ul>
  3. 3. Collaborative Compliance <ul><li>Who is liable? the Sender and the Initiator </li></ul><ul><li>Sender Principally, the advertiser whose product, service or Internet Web site is advertised in the message. May or may not be the same as the initiator </li></ul><ul><ul><li>Each distinct line of business within a company can be considered a unique “sender” of commercial email </li></ul></ul><ul><li>Initiator The term “initiate” means to originate or transmit an electronic message or to procure the origination or transmission of such message. More than one person may be considered to have initiated the message. </li></ul><ul><ul><li>Often a list owner or email delivery service bureau </li></ul></ul><ul><li>Collaborative Compliance </li></ul>
  4. 4. Collaborative Compliance <ul><li>Where do you fit in? </li></ul><ul><li>Who profits? </li></ul><ul><li>Is it your offer? </li></ul><ul><li>Who clicks the </li></ul><ul><li>send button? </li></ul><ul><li>Do you have a </li></ul><ul><li>hybrid business </li></ul><ul><li>model? </li></ul>
  5. 5. Obligation to Monitor and Resolve <ul><li>Federal Register Vol. 70, No. 91/ Thursday May 12 2005/ Proposed Rules. </li></ul><ul><ul><li>Page 25,431 (not a typo) Section (2) entitled &quot;Sender Liability for Practices of Affiliates or Other Similar Entities&quot; : </li></ul></ul><ul><ul><li>“ [the FTC] has specifically held sellers liable for the actions of third party representatives if those sellers have failed to adequately monitor the activities of such third parties and have neglected to take corrective action when those parties fail to comply with the law.” </li></ul></ul>
  6. 6. Compliance Process <ul><li>Screen Affiliates </li></ul><ul><li>Outline Expectations </li></ul><ul><ul><li>Contractually and in English </li></ul></ul><ul><li>Monitor Sending </li></ul><ul><ul><li>Subject Lines, From Lines, Content, Scrubbing </li></ul></ul><ul><li>Terminate Violators- Be Fair </li></ul><ul><li>Recognize and Reward Good Practices </li></ul><ul><li>Is one campaign worth your entire business? </li></ul>
  7. 7. Compliance Process <ul><li>Adteractive/Azoogle Settlements </li></ul><ul><li>Affiliates/Publishers Need Independent Compliance Processes </li></ul><ul><ul><li>Review Advertiser/ Network Offers Before Mailing </li></ul></ul><ul><ul><ul><li>Negative Option Billing? Incentivized Offer? </li></ul></ul></ul><ul><ul><li>Review Unsubscribe and Suppression List Practices </li></ul></ul><ul><ul><li>Advertisers and Networks are monitoring you </li></ul></ul><ul><ul><li>Research Compliance and Email Reputation of partners- watch them right back. </li></ul></ul>
  8. 8. Three Types of CAN-SPAM Compliance
  9. 9. Unsubscribe Compliance <ul><li>1. Bad Unsubscribe Option </li></ul><ul><li>Guidance: One or more unsubscribe mechanisms must be visible and operable for minimum of 31 days after the message is sent. It is defined as a “return electronic mailing address or other Internet-based mechanism found within an email that may be used to unsubscribe from the mailing list that sent the mail.” </li></ul><ul><li>Best Practices: For messages sent by affiliate networks, two opt out options should be provided - one for the advertiser and one for the publisher. These options should be clearly visible and labeled in a method that is clear to the recipient. </li></ul><ul><li>2. Failure to Unsubscribe or Failure to Honor </li></ul><ul><li>Guidance: Once a recipient unsubscribes, there is a ten day period to remove the email address so they do not receive any future offers. “Opt-out” is the basis of CAN-SPAM’s legislative intent. </li></ul><ul><li>Best Practices: Scrub lists for each campaign and avoid false triggers of ‘failure to honor’ when segmenting by list </li></ul><ul><ul><li>Identify the list in the List-Unsubscribe header ( [email_address] ) </li></ul></ul><ul><ul><li>Use different List-ID headers for each list </li></ul></ul>
  10. 10. Unsubscribe Compliance <ul><li>3. Suppression List Abuse </li></ul><ul><li>Guidance: A suppression list or opt-out list, is a list of email addresses that have been unsubscribed from a mailing list or group of mailing lists. </li></ul><ul><ul><li>Advertisers and 3 rd parties they engage are required by law to maintain and distribute a copy of their suppression lists to their partners. Cases of suppression list abuse occur when email addresses contained within the suppression file are sent email. </li></ul></ul><ul><li>Best Practices: From a consumer perspective Suppression List Abuse is the single most critical compliance failure and can result in a significant increase in spam received and thus complaints about marketers which hurts your reputation. </li></ul><ul><ul><li>- Never distribute suppression files in raw text format – this could harm your unsubscribe reputation if someone misuses this file </li></ul></ul><ul><ul><li>- Seed your lists and monitor – and/or – </li></ul></ul><ul><ul><li>- Use a suppression list management and encryption service ie. UnsubCentral, MD5-Hash </li></ul></ul>
  11. 11. Content Compliance <ul><li>4. No Postal Address Provided </li></ul><ul><li>Guidance: A postal address is a physical street address or post office box address. </li></ul><ul><li>Best Practice: LashBack recommends that for messages sent by affiliate or ad networks, both the advertiser’s physical address and the publisher’s physical address be provided in the message. </li></ul><ul><li>The easier a consumer can contact your company, the more they trust your brand. </li></ul><ul><li>5. Relevant ‘Subject’ Line </li></ul><ul><li>Guidance: A subject line specifies the subject of an email. In the email header it is the text that follows &quot;Subject:“ It is required to be relevant to the body of the message. </li></ul><ul><li>Best Practice: Relevancy means clarity and continuity to the recipient which increases open rates and click-throughs. A worst practice would include deception which raises complaints and violates two separate sections of FTC law. </li></ul>
  12. 12. Content Compliance <ul><li>6. Accurate ‘From’ Line </li></ul><ul><li>Guidance: A ‘from’ line is a line in the email header that specifies the sender's email address. The portion before the @ sign in the email address should contain accurate information pursuant to the offer, advertiser, or publisher. </li></ul><ul><li>Best Practice: The from line should be accurate to the body of the message and not mislead the consumer. The “friendly from” should follow the same best practices- not be inaccurate or mislead. </li></ul><ul><ul><li>Never use a fictitious name </li></ul></ul><ul><ul><li>Accurate “from” and relevant “subject” lines are the main variable in how a consumer treats an email. 80% of Consumers polled by the ESPC use the “Report Spam” button if they do not recognize a sender by viewing the “from” or “subject” line.* </li></ul></ul><ul><li>* Email Sender and Provider Coalition Survey December 2006 </li></ul><ul><li> </li></ul>
  13. 13. Sending and Data Compliance <ul><li>7. Forged Email Headers </li></ul><ul><li>Guidance: Forged email headers are the result of altering an email header to make it appear as though it came from somewhere or someone other than the actual source. </li></ul><ul><li>Best Practices: This point of compliance is taken very seriously by the CAN-SPAM Act which includes language wherein the Department of Justice or other federal agencies could be brought in to assess the criminality of this activity beyond the FTC’s ability to levy economic fines. Monitor email for false headers and investigate origin. </li></ul><ul><li>8. Send Through Open Relay </li></ul><ul><li>Guidance: An open relay is an SMTP email server that is not properly secured and relays messages from third-parties. </li></ul><ul><li>Best Practices: Typically, the owners of such servers are unaware that their server is sending these messages. This is the leading cause of UCE (Unsolicited Commercial Email) or spam. Inquire how your servers are protected. </li></ul>
  14. 14. Sending and Data Compliance <ul><li>9. Do not Send to Harvested Email </li></ul><ul><li>Guidance: This point of compliance covers email addresses that are systematically taken from postings or content on websites or constructed through the use of a dictionary attack. </li></ul><ul><li>Best Practices: </li></ul><ul><li>Check your lists for harvested data and always know the origin of the list. </li></ul><ul><li>Monitor and remove bounced email addresses </li></ul><ul><li>Grouping lists by domains could show patterned attacks of common names, or generic. </li></ul><ul><li>Never send to a suppression list or distribute your list to organizations, marketing partners, or affiliates you suspect of abuse. </li></ul>
  15. 15. Custom Email Policy Enforcement <ul><li>10. Enforce Internal Corporate Guidelines and Best Practices </li></ul><ul><li>Guidance: Many online marketers implement custom controls which go beyond CAN-SPAM requirements to enforce their own corporate policies and procedures. </li></ul><ul><li>Custom Best Practices: </li></ul><ul><li>Use of Specific, Pre-Approved Subject Lines </li></ul><ul><li>Frequency Caps for Sending </li></ul><ul><li>Email Brand Monitoring </li></ul><ul><li>Relationship Mapping </li></ul><ul><li>Co-registration Email Propagation </li></ul>
  16. 16. Compliance Impacts Reputation Consumers and Receivers Report Key Metrics to Centralized Data System Marketers Use Feedback To Improve Sending Practices Data Linked to Sending IP and Domain ISPs and Receivers Consume Reputation Data for Delivery Decisions Marketers Consume FeedBack
  17. 17. Benefits of Compliance <ul><li>Decrease Liability </li></ul><ul><ul><ul><li>Public and Private </li></ul></ul></ul><ul><ul><ul><li>Identify Fraud </li></ul></ul></ul><ul><li>Protect Reputation </li></ul><ul><ul><ul><li>Deciding factor for inbox delivery </li></ul></ul></ul><ul><ul><ul><li>Deciding factor in who works with you </li></ul></ul></ul><ul><ul><ul><li>Increase brand equity </li></ul></ul></ul><ul><li>Increase Deliverability </li></ul><ul><ul><ul><li>Compliant email gets delivered </li></ul></ul></ul><ul><ul><ul><li>Actionable feedback data improves future campaigns </li></ul></ul></ul><ul><li>Increase Profit </li></ul><ul><ul><ul><li>When email gets delivered it impacts not only revenue but profit per campaign. </li></ul></ul></ul>
  18. 18. Practical Solutions to Legal Compliance The Email Compliance Authority Email Compliance for Affiliate Marketing James O’Brien Director of Marketing 314.754.1795 [email_address]