IF Asks FTC to Clarify Definition of Commercial E-mail
The Incentive Federation, Inc. has asked the Federal Trade Commission to clarify the definition of a commercial e-mail message with respect to non-profit tax-exempt organizations. The definition could have far reaching impact on trade associations’ abilities to conduct business with its own members, donors, volunteers and others.
George Delta, the Federation’s legal counsel, sent a letter Sept. 23 to the FTC after the commission sought public comment on proposed rules regarding commercial electronic mail under the Can-Spam Act of 2003.
The Federation urged the FTC to clarify that the term “commercial electronic messages” is aimed at the commercial activities of for-profit businesses and not at non-profits, regardless of whether the e-mail has any commercial content, such as a notice to register for an industry trade show.
“As long as any tax-exempt organization is sending e-mail that’s consistent with one of its tax-exempt purposes, then that e-mail should not be subject to or regulated by the Can-Spam Act,” Delta said.
Delta said that a definition that blends non-profits with commercial entities could harm and even block the valuable work that non-profit organizations perform. It could also be costly for trade associations to comply with the complicated rules.
“You shouldn’t have to meet the requirements of the Can-Spam Act to be able to talk to you members,” he said.
The letter said that the language is aimed at for-profit entities and their commercial businesses and asks that the FTC clarify that only commercial e-mail messages or e-mail that promotes or advertises a commercial product can be regulated under the act.
The act’s current definition defines commercial e-mail as “any electronic mail message the primary purposes of which is the commercial advertisement or promotion of a commercial product or service.” The Federation maintains that e-mail messages sent by a tax-exempt organization to a member or donor would meet the definition of a “transactional or relationship message” as defined by the act.
Incentive Federation members include: the Incentive Marketing Association, the National Association for Employee Recognition, the Promotion Marketing Association, The Promotional Products Association International, the Association of Retail Marketing Services and the Society of Incentive Travel Executives, all non-profit organizations.
The Can-Spam Act, which took effect Jan. 1, established the first national standards for commercial e-mail and includes tough civil and criminal penalties. The act requires senders of commercial e-mail to include an enforceable opt-out mechanism, prohibits false and deceptive headers and subject lines and increases monetary damages imposed on spammers who engage in particularly nefarious spamming techniques. The bill was sponsored by Sens. Conrad Burns (R-MT) and Ron Wyden (D-OR).
