
California is becoming a dangerous state
for email marketers. Companies have been hit with a new wave of anti-spam class actions under California’s anti-spam law, raising significant risks, according to an advisory from the Crowell
law firm.
For one thing, plaintiffs argue that firms can be held liable for unlawful emails even without direct involvement, and whether they were intended or not. This would
impact any company that sends commercial emails to California residents, even through third-party vendors or affiliates.
Moreover, the claims seek $1,000 per email per
recipient, which can result in multimillion-dollar exposure in class actions.
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Advertisers and brands that benefit from email campaigns face the highest risk.
Even without
substantial judgments, defending against class actions can be costly and waste valuable management time.
Crowell has analyzed over 20 complaints filed in the last 15 months against
retailers and providers of loan services, tax support and insurance.
The biggest complaints are that defendants sent emails without valid opt-in and/or opt-out mechanisms, and that they
employed false or untraceable email header information and misleading subject lines, and used third-party domain names without permission.
The complaints assert that defendants
falsified, misrepresented or utilized untraceable or phony email header information (sender names, domain names, etc.); used third-party domain names without permission; used irrelevant and misleading
subject lines; and/or sent emails without valid opt-in and/or opt-out mechanisms.
But there is one remedy: Compliance. Damages can be capped if the defendant demonstrates that they have
robust anti-spam policies and procedures.
Crowell advises email senders to:
- Review and update email marketing policies
- Implement robust
compliance procedures
- Monitor third-party vendors
- Maintain documentation