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Controlling the Assault of Non-Solicited Pornography
and Marketing Act of 2003

by Sanders Consultation Group Plus

CANSPAM Act of 2003 and How it Will Affect Our Marketing Campaigns

Here we will look at parts of the act pertaining to business and previous knowledge of email marketing directly violating the act. It shows that the government is also targeting businesses that allow others to promote their product or service. It also shows that they are holding business accountable for their role in unsolicited commercial email, and not just the affiliate marketer that provides marketing services for the business.

(a) IN GENERAL.-It is unlawful for a person to promote, or allow the promotion of, that person's trade or business, or goods, products, property, or services sold, offered for sale, leased or offered for lease, or otherwise made available through that trade or business, in a commercial electronic mail message the transmission of which is in violation of section 5(a)(1) if that person-

(1) knows, or should have known in the ordinary course of that person's trade or business, that the goods, products, property, or services sold, offered for sale, leased or offered for lease, or otherwise made available through that trade or business were being promoted in such a message;

(2) received or expected to receive an economic benefit from such promotion; and

(3) took no reasonable action-

(A) to prevent the transmission; or

(B) to detect the transmission and report it to the Commission.

You may not allow anyone else to promote your company based on actions outlined in the act as being illegal. All the things you are not allowed to do as defined by this act, nobody else is allowed to do for you either. If you have knowledge that they will promote you using the practices now illegal by the act, and do nothing to prevent it or fail to report it, then you can also be held liable. With every rule comes an exception where you might not be liable. Those instances are included in the following section.

(b) LIMITED ENFORCEMENT AGAINST THIRD PARTIES.-

(1) IN GENERAL.-Except as provided in paragraph (2), a person (hereinafter referred to as the "third party") that provides goods, products, property, or services to another person that violates subsection (a) shall not be held liable for such violation.

(2) EXCEPTION.-Liability for a violation of subsection (a) shall be imputed to a third party that provides goods, products, property, or services to another person that violates subsection

(a) if that third party-

(A) owns, or has a greater than 50 percent ownership or economic interest in, the trade or business of the person that violated subsection (a); or

(B)(i) has actual knowledge that goods, products, property, or services are promoted in a commercial electronic mail message the transmission of which is in violation of section 5(a)(1); and (ii) receives, or expects to receive, an economic benefit from such promotion.

You will be liable for other parties if you own or have greater than 50% ownership or economic interest in the violator. You will also be liable if you knew of the violation and receive or expect to receive economic benefits from the promotion. Greater than 50% ownership deals with companies and subsidiaries, and could be interpreted for instances where stock is owned in a company. All instances require that you knew or should have reasonably been able to figure out that they would promote you illegally.

Back to Table of Contents        Penalties for Violating the Act  (Article Continues)


About the Author

James R. Sanders is the owner of Sanders Consultation Group Plus. He has been a webmaster and website designer since 1997. He has also been involved in self employment ventures since 1992. He is presently a contributing author of NewbieHangout. His writing is targeted to webmasters, would be webmasters, website designers, would be website designers, self employed, or those researching information looking for solutions to questions associated with design, business operations, and promotion today. His goal is to provide practical information based upon his years of experience to help webmasters, website designers, and self employed people achieve their goals in today's competitive global market. You can subscribe to his free newsletters at SCGP - Newsletter.

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