Cold email is a powerful channel for business growth. However, if you’re sending cold emails (e.g., using a cold email tool like Hunter Campaigns), you must take precautions to avoid violating any legal regulations protecting the privacy of your recipients. Severe penalties can result from violations of regulations governing email communication, such as the CAN-SPAM Act in the United States or the GDPR in Europe.
Is Cold Email Legal?
Which Regulations Apply to Cold Email?
Determining Applicable Regulations
Notable Examples of Legal Regulations
Best Practices for Email Outreach Compliance
Conclusion
FAQs
This article will help you understand which regulations apply to your activity and outline the best practices for staying compliant. Please remember that the information below is not legal advice; you should always consult your lawyer for personalised legal advice.
You might have encountered some legal nuances that made you wonder whether sending cold email campaigns is legal and will not break any laws. Cold emailing is legal, provided you follow the rules set out by applicable regulations.
Navigating the landscape of privacy regulations is crucial for your business. If you plan to engage in email outreach to recipients in North America and the European Union, some regulations to pay attention to are:
These regulations impose strict requirements on how businesses can collect, manage, and use personal data gathered to send emails.
To determine which legal regulations apply to your email campaign, consider your recipients' locations. It can be challenging to ascertain the exact location of your recipients when sending cold emails.
A common approach is to base compliance efforts on the employer's location, providing a practical way to navigate the complexities of international regulations.
GDPR aims to safeguard the privacy of EU citizens regarding the handling and use of their data in the digital world. To comply with GDPR, follow these tips:
Reach Out to Relevant Contacts: Ensure your outreach is relevant to the recipient's business and can benefit them. Conduct a legitimate interest assessment with your legal representative to document how your business interest is balanced with the rights and freedoms of your recipients.
Be Transparent: Clearly state your identity and company in your emails. Include your name, signature, links to your socials, and a clear email address.
Provide an Opt-out Option: Always offer an easy way for the recipient to unsubscribe, such as an unsubscribe link or sentence. If they opt out, don't email them again and delete their contact information from all locations.
Secure Data Storage: Ensure any stored email addresses or data are secure and invest in security measures to prevent breaches.
Regularly Update Your Database: Use an Email Verifier tool to keep your email list clean and current. Remove invalid and bounced emails regularly and ensure opted-out prospects aren't receiving your emails.
Document Data Sources: Record how you obtained an email address to comply with GDPR requirements.
The CAN-SPAM Act regulates all commercial email messages across the United States. To comply with CAN-SPAM, follow these tips:
Correct Sender Information: Ensure that your email's "From," "To," "Reply-To," and routing details are truthful and correctly identify the sender.
Relevant Subject Lines: Use subject lines that accurately represent the content of your email. Avoid misleading or deceptive subject lines.
Identify the Email as a Promotion: Disclose that your message is a promotional email.
Include Your Physical Address: Provide a valid physical postal address in your email.
Offer an Opt-out Option: Include a clear way for recipients to opt out of receiving future marketing emails, and honor opt-out requests promptly.
Monitor Third-party Activities: If you outsource email marketing, ensure compliance with CAN-SPAM guidelines.
The Canadian Anti-Spam Legislation (CASL) imposes strict requirements on commercial electronic messages (CEMs). To comply with CASL, follow these tips:
Obtain Consent: Senders must obtain consent from recipients before sending cold emails. There are two types of consent: explicit and implied. Implied consent is time-limited to two years and applies to existing business relationships or publicly available email addresses.
Provide an Opt-out Option: Include an easy way for recipients to unsubscribe and honor opt-out requests promptly.
Secure Data Storage: Ensure any stored email addresses or data are secure.
The California Consumer Privacy Act (CCPA) has important implications for email outreach. To comply with CCPA, follow these tips:
Understand Applicable Criteria: CCPA applies to businesses that collect the personal information of California residents and meet specific criteria.
Respect Consumer Rights: Consumers have right to correct, erase, and know how their information is used, among others. Businesses must provide an easy way for consumers to opt out of data collection.
Provide Opt-out Options: Include a “Do Not Sell My Personal Information” page on your website.
Check out our cheat sheet for more information:
| Regulation | Region | Key Requirements | Penalties for Violation |
|---|---|---|---|
| GDPR (General Data Protection Regulation) | European Union | - Legitimate interest for data use- Transparency about identity- Easy opt-out option- Secure data storage- Regular database updates- Document data sources | Up to €20 million or 4% of annual global turnover |
| CAN-SPAM (Controlling the Assault of Non-Solicited Pornography And Marketing Act) | United States | - Truthful sender information- Accurate subject lines- Identify email as an advertisement- Include physical postal address- Easy opt-out option- Honor opt-out requests within 10 business days- Monitor third-party activities | Up to $51,744 per violation |
| CASL (Canada’s Anti-Spam Legislation) | Canada | - Obtain explicit or implied consent- Clear sender identification- Relevant email content- Easy opt-out option- Secure data storage | Up to $1 million per violation for individuals and $10 million per violation for companies |
| CCPA (California Consumer Privacy Act) | California, USA | - Right to correct, erase, and know information- Right to opt out of data collection- Provide "Do Not Sell My Personal Information" page | Up to $2,500 per email for unintentional violations and $7,500 per email for intentional violations |
Regardless of the jurisdiction, implement these best practices:
Set a Correct Sender Name: Use a sender name that helps the recipient correctly identify you.
Use an Accurate Subject Line: Ensure subject lines accurately reflect the content of your cold email.
Explain Your Purpose: Clearly state why you're reaching out and how it benefits the recipient.
Include an Unsubscribe Option: Ensure the unsubscribe link or sentence is easy to find and understand.
Manage Unsubscriptions: Honor opt-out requests promptly and update your database accordingly.
Document Data Sources: Record how you obtained email addresses to demonstrate compliance.
Understanding and complying with regulations like GDPR, CAN-SPAM, CASL, and CCPA is crucial for legally sending cold emails. Implementing best practices ensures your email outreach is effective and respectful of recipients' privacy rights. Always seek legal guidance to stay updated with regulations and maintain compliance.
If you'd like to find out more about email marketing and CRM, contact Velocity today.
Yes, cold emailing is legal as long as you follow the rules set out by applicable regulations, such as GDPR, CAN-SPAM, CASL, and CCPA.
The CAN-SPAM Act is a U.S. law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have you stop emailing them, and spells out tough penalties for violations.
The General Data Protection Regulation (GDPR) is a regulation in the European Union that aims to protect the privacy and personal data of EU citizens. It imposes strict requirements on how businesses can collect, manage, and use personal data.
To comply with GDPR, ensure you have a legitimate interest in contacting the recipient, be transparent about your identity, provide an easy opt-out option, store data securely, regularly update your database, and document how you obtained the recipient’s information.
Canada’s Anti-Spam Legislation (CASL) requires businesses to obtain consent before sending commercial electronic messages. It also mandates clear identification of the sender, a straightforward opt-out process, and secure storage of data.
The California Consumer Privacy Act (CCPA) is a state law that gives California residents more control over the personal information that businesses collect. It includes the right to know, delete, and opt out of the sale of personal information.
To comply with CAN-SPAM, use truthful sender information, and relevant subject lines, identify the email as an advertisement, include your physical address, provide a clear opt-out option, and honor opt-out requests promptly.
Violating GDPR can result in severe fines, sometimes up to €20 million or 4% of your annual global turnover, whichever is higher.
Violating CAN-SPAM can result in penalties of up to $51,744 per violation.
For CASL compliance, you can collect explicit consent through forms or checkboxes on your website or rely on implied consent if you have an existing business relationship with the recipient or if their email address is publicly available.
If someone opts out of your emails, you should immediately stop emailing them and remove their contact information from your database to ensure compliance with regulations like GDPR and CAN-SPAM.