Legal Definitions - CAN-SPAM Act of 2003: Enforcement by States

The CAN-SPAM Act of 2003, which stands for "Controlling the Assault of Non-Solicited Pornography And Marketing," is a federal law that establishes rules for commercial email messages and gives recipients the right to have businesses stop emailing them. This law aims to protect consumers from unwanted and deceptive commercial emails.

The term "Enforcement by States" refers to the specific authority granted to state governments, such as a state's Attorney General or a consumer protection agency, to take legal action against individuals or companies that violate certain provisions of the CAN-SPAM Act. When a state initiates such a lawsuit, it does so on behalf of its residents, acting to protect their collective interests.

A state can bring a lawsuit if it has reason to believe that its residents are being harmed or threatened by commercial emails that:

• Contain materially false or misleading information in the "From," "To," "Reply-To," or routing details, making it difficult to identify the true sender.
• Use a deceptive subject line that misrepresents the actual content of the email.
• Fail to adhere to the specific legal requirements for emails containing sexually oriented material, such as requiring a warning label.
• Do not provide a clear and effective way for recipients to opt out of receiving future emails, or fail to honor opt-out requests promptly.

If a state successfully brings such a lawsuit, a court can order the violator to stop their illegal practices (known as an injunction), pay money to compensate for damages, or pay specific penalties set by law. The court may also require the violator to cover the state's legal fees. Federal agencies, like the Federal Trade Commission, also have the right to get involved in these state-led cases.

Examples of CAN-SPAM Act Enforcement by States:

• Deceptive Subject Lines: A company named "QuickCash Loans" sends millions of emails to residents of State A with subject lines like "Urgent: Your Credit Score Has Been Updated" or "Official Tax Refund Notification." However, upon opening, the emails are merely advertisements for high-interest personal loans, completely unrelated to credit scores or tax refunds. The Attorney General of State A could investigate and sue QuickCash Loans because these subject lines are intentionally misleading, tricking recipients into opening emails under false pretenses, which violates the CAN-SPAM Act's prohibition against deceptive subject lines. This action would protect the state's residents from deceptive marketing practices and potential financial scams.

• Failure to Honor Opt-Out Requests: "DailyDeals Online," an e-commerce retailer, sends daily promotional emails to customers in State B. Many residents attempt to unsubscribe using the clearly visible link provided in the emails. Despite clicking the unsubscribe link multiple times, these residents continue to receive emails from DailyDeals Online, sometimes from slightly altered sender addresses or different departments within the company. The consumer protection agency in State B could bring a civil action against DailyDeals Online. The company's repeated failure to honor opt-out requests and its practice of circumventing unsubscribe attempts directly violate the CAN-SPAM Act's requirement for an effective and timely opt-out mechanism. The state would be acting to protect its residents' right to control the commercial emails they receive.

• False Transmission Information: An online supplement vendor, "MiracleCure Labs," sends unsolicited emails to residents of State C promoting unproven health products. The "From" field of these emails frequently displays names like "Dr. Wellness Advice" or "University Health Study," and the email's routing information is deliberately obscured or falsified, making it impossible for recipients to identify the true sender or reply to them. The Attorney General of State C could initiate a lawsuit against "MiracleCure Labs." By using materially false and misleading "From" names and routing information, "MiracleCure Labs" is violating the CAN-SPAM Act's provision against deceptive transmission information. The state's intervention would aim to protect its residents from potentially harmful products and fraudulent marketing by ensuring senders are identifiable and accountable.