CAN-SPAM Compliance Guide

The CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography And Marketing Act) is a federal law enacted in 2003 that sets the rules for commercial email messages. It applies to any electronic message whose primary purpose is the commercial advertisement or promotion of a product or service — including email that promotes content on a commercial website.

Violations carry penalties of up to $51,744 per email, with no maximum cap. Both the company whose product is promoted and the company that sends the message can be held liable. Understanding and complying with CAN-SPAM is not optional — it is a legal requirement for any business sending commercial email in the United States.

This guide covers the core requirements of the CAN-SPAM Act, how DailyStory helps you stay compliant, and the specific steps your team should follow to avoid violations.

Who CAN-SPAM applies to

CAN-SPAM applies to all commercial electronic messages sent to recipients in the United States, regardless of where the sender is located. This includes:

• Promotional emails for products or services
• Marketing newsletters
• Event invitations with a commercial purpose
• Emails promoting content on a commercial website
• Business-to-business (B2B) commercial emails

A common misconception is that CAN-SPAM only applies to bulk email. It does not. Even a single commercial email to a single recipient must comply with the law.

Commercial vs. transactional email

CAN-SPAM distinguishes between two types of email: commercial and transactional. The classification determines which rules apply.

Commercial email

An email is classified as commercial if its primary purpose is the commercial advertisement or promotion of a commercial product or service. All CAN-SPAM requirements apply to commercial email.

Transactional or relationship email

An email is classified as transactional if its primary purpose is to:

• Facilitate or confirm a transaction the recipient already agreed to
• Provide warranty, recall, safety, or security information about a product or service
• Notify the recipient of a change in terms, features, or account information
• Provide information about an ongoing commercial relationship (e.g., account statements, subscription updates)
• Deliver goods or services as part of a transaction the recipient already agreed to (including product updates and upgrades)

Transactional emails are exempt from most CAN-SPAM requirements. However, they must not contain false or misleading routing information (From name, reply-to address, originating domain).

Mixed-content email

Some emails contain both commercial and transactional content. In these cases, the FTC applies a "primary purpose" test. If the subject line would lead a recipient to believe the message is commercial, or if the transactional content does not appear at the beginning of the message body, the email is classified as commercial and all CAN-SPAM rules apply.

The seven requirements of CAN-SPAM

The FTC enforces CAN-SPAM through seven core requirements. Every commercial email your organization sends must meet all seven.

1. Do not use false or misleading header information

The "From," "To," "Reply-To," and routing information in your email — including the originating domain name and email address — must be accurate and identify the person or business that initiated the message.

In DailyStory, your sender information is configured through Manage Senders. Each sender profile includes a From name, From email address, and Reply-To address. Ensure these accurately represent your organization.

2. Do not use deceptive subject lines

The subject line must accurately reflect the content of the message. A subject line that says "Your account has been updated" for a promotional email is misleading and violates CAN-SPAM.

This requirement is straightforward but frequently violated — especially with clickbait-style subject lines or subject lines that imply urgency unrelated to the email content.

3. Identify the message as an advertisement

CAN-SPAM requires that commercial email be identifiable as an advertisement. The law gives senders flexibility in how to do this — there is no specific language or placement required. However, the disclosure must be "clear and conspicuous."

Most businesses satisfy this requirement through a combination of branded templates, footer disclosures, and clear promotional context in the email body. If your email is obviously promotional in nature (e.g., a product launch announcement from your brand), the context itself may satisfy this requirement.

4. Include your physical postal address

Every commercial email must include a valid physical postal address of the sender. This can be:

• A current street address
• A post office box registered with the U.S. Postal Service
• A private mailbox registered with a commercial mail receiving agency (per USPS regulations)

In DailyStory, your physical address is configured in your account defaults under the Brand Kit settings. This address is automatically included in the footer of every email sent through the platform using the {address} merge tag.

5. Provide a clear unsubscribe mechanism

Every commercial email must include a clear and conspicuous explanation of how the recipient can opt out of receiving future commercial email from you. The opt-out mechanism must meet two criteria:

• It must be easy to recognize, read, and understand — a return email address or a clearly labeled unsubscribe link both qualify
• It must be functional — capable of receiving and processing opt-out requests for at least 30 days after the message is sent

DailyStory automatically includes an unsubscribe link in the footer of every commercial email. The unsubscribe page is configured in your account defaults and can be customized to match your brand. When a recipient clicks unsubscribe, DailyStory immediately processes the opt-out and suppresses future commercial sends to that contact.

You can also use the {unsubscribe} merge tag to place the unsubscribe link anywhere in your email template if you prefer a different placement than the default footer.

6. Honor opt-out requests within 10 business days

Once a recipient requests to opt out, you must stop sending them commercial email within 10 business days. You cannot:

• Charge a fee for processing the opt-out
• Require the recipient to provide any information beyond their email address
• Require the recipient to visit more than a single page to complete the opt-out (beyond a confirmation page)
• Transfer or sell the email address to another party after the opt-out (except to a compliance vendor processing the request on your behalf)

DailyStory processes unsubscribe requests immediately upon receipt. Once a contact unsubscribes, they are automatically excluded from future commercial email sends. The platform's email sending guardrails enforce this suppression across all campaigns and automations.

7. Monitor what others do on your behalf

If you hire another company to handle your email marketing, you cannot contract away your legal responsibility. Both the company whose product is promoted and the company that physically sends the message can be held legally responsible for CAN-SPAM violations.

This applies to agencies, contractors, affiliate marketers, and any third party sending email on your behalf. You are responsible for ensuring that anyone sending commercial email promoting your products or services complies with CAN-SPAM.

How DailyStory enforces compliance

DailyStory includes several built-in features that help enforce CAN-SPAM compliance across your email program.

Automatic unsubscribe handling

Every email sent through DailyStory includes a functioning unsubscribe mechanism. When a recipient opts out, the contact record is immediately updated and all future commercial sends are suppressed. This is handled at the platform level and cannot be overridden by individual campaign settings.

Physical address enforcement

DailyStory requires a valid physical address in your account defaults. This address is automatically inserted into email footers using the {address} merge tag. If no address is configured, the merge tag will render empty — so it is critical to verify this setting before launching any campaign.

Sender authentication

DailyStory requires proper domain authentication (SPF, DKIM, and DMARC) for all sending domains configured through Manage Senders. This authentication ensures that your From address accurately represents your organization and that your emails are not flagged as spoofed or fraudulent by receiving mail servers.

Email sending guardrails

DailyStory's email sending guardrails provide an additional layer of compliance protection. These guardrails include suppression of unsubscribed contacts, bounce management, complaint handling, and frequency controls that prevent individual contacts from receiving an excessive volume of commercial email.

Contact suppression and hygiene

DailyStory maintains suppression lists for contacts who have unsubscribed, bounced, or filed spam complaints. These suppression lists are enforced across all campaigns and automations — ensuring that a contact who opts out of one campaign is automatically excluded from all future commercial sends.

Common CAN-SPAM violations to avoid

Even well-intentioned email programs can inadvertently violate CAN-SPAM. These are the most common mistakes:

Pre-checked opt-in boxes

While CAN-SPAM does not require opt-in consent, pre-checked boxes that subscribe users to email lists are a gray area. They do not violate CAN-SPAM directly, but they generate high complaint rates, damage sender reputation, and may violate state-level privacy laws. Best practice is to use explicit opt-in.

Ignoring unsubscribe requests from non-standard channels

If a recipient replies to your email asking to be removed, that constitutes an opt-out request under CAN-SPAM — even if it was not submitted through your formal unsubscribe mechanism. Monitor your reply-to addresses and process these requests manually if needed.

Purchased or rented email lists

Sending commercial email to purchased or rented lists is not explicitly prohibited by CAN-SPAM, but it is extremely high-risk. These lists often contain outdated addresses, spam traps, and recipients who have never consented to hearing from you. The resulting spam complaints and bounces can damage your sending reputation and trigger enforcement action.

Failing to update the physical address

Companies that move offices or change mailing addresses frequently forget to update their email footer. Every email sent with an invalid physical address is a CAN-SPAM violation — and at $51,744 per email, this oversight can become extremely expensive for high-volume senders.

Sending from a no-reply address

While CAN-SPAM does not explicitly prohibit no-reply addresses, using one can create compliance issues. If recipients cannot reply to opt out and the unsubscribe link is broken or missing, you have no functional opt-out mechanism — which is a direct violation. Use a monitored reply-to address whenever possible.

Affiliate and partner emails

If an affiliate or partner sends commercial email promoting your product, you share legal responsibility for that email's CAN-SPAM compliance. Ensure that any agreements with affiliates or partners include explicit CAN-SPAM compliance requirements and that you have visibility into the emails being sent on your behalf.

CAN-SPAM and international email laws

CAN-SPAM applies to commercial email sent to U.S. recipients. However, if your email program reaches international recipients, you may also need to comply with:

• CASL (Canada): Canada's Anti-Spam Legislation requires express or implied consent before sending commercial email. It is significantly stricter than CAN-SPAM and carries penalties up to $10 million CAD per violation.
• GDPR (European Union): The General Data Protection Regulation requires explicit consent for marketing communications and gives recipients the right to access, correct, and delete their personal data. Penalties can reach 4% of annual global revenue.
• PECR (United Kingdom): The Privacy and Electronic Communications Regulations require consent for marketing email to individuals and carry fines up to £500,000.

If you send email internationally, your compliance program must account for the strictest applicable law. In practice, this means building your email program around explicit opt-in consent, even though CAN-SPAM itself does not require it.

Enforcement and penalties

CAN-SPAM is enforced by the Federal Trade Commission (FTC), along with state attorneys general and internet service providers (ISPs) who can bring civil actions. Key enforcement details:

• Penalties: Up to $51,744 per individual email that violates the Act (adjusted periodically for inflation)
• No cap: There is no maximum total penalty. A campaign sent to 100,000 recipients could theoretically generate liability exceeding $5 billion
• Criminal penalties: Aggravated violations — such as harvesting email addresses, using dictionary attacks to generate addresses, or sending through unauthorized relay servers — can result in criminal prosecution, fines, and imprisonment
• Joint liability: Both the sender and the company whose product is promoted share liability. You cannot avoid responsibility by outsourcing email delivery to a third party

Recent enforcement actions include the FTC's $2.95 million settlement with Verkada in 2024 — one of the largest CAN-SPAM penalties on record — for sending commercial emails without an unsubscribe mechanism and using deceptive sender information. The FTC has also indicated that it is using AI-powered analysis to identify CAN-SPAM violations at scale, making enforcement more systematic and comprehensive than in prior years.

CAN-SPAM compliance checklist

Use this checklist to verify your email program meets all CAN-SPAM requirements:

• Sender identity: Your From name, From email, and Reply-To address accurately identify your organization. Verify this in Manage Senders.
• Subject lines: Every subject line accurately reflects the email's content. No misleading or deceptive language.
• Advertisement disclosure: Commercial emails are identifiable as advertisements through branding, context, or explicit disclosure.
• Physical address: A valid physical postal address is included in every commercial email. Verify this in your Brand Kit settings.
• Unsubscribe mechanism: Every commercial email includes a clear, functioning unsubscribe link. DailyStory provides this automatically.
• Opt-out processing: Unsubscribe requests are honored within 10 business days. DailyStory processes these immediately.
• Third-party monitoring: If agencies, contractors, or affiliates send email on your behalf, their compliance is monitored and documented.
• Suppression lists: Unsubscribed, bounced, and complained contacts are excluded from all future commercial sends.
• Domain authentication: SPF, DKIM, and DMARC are properly configured for all sending domains.
• International compliance: If you send to recipients outside the U.S., you comply with the applicable laws in those jurisdictions.

Next steps

CAN-SPAM compliance is a baseline requirement — not a competitive advantage. Every commercial email your organization sends must meet these requirements, regardless of volume, audience, or industry.

To ensure your DailyStory account is properly configured for compliance:

• Review your sender profiles in Manage Senders to verify From name, email, and reply-to accuracy
• Confirm your physical address is current in account defaults
• Review your email sending guardrails to understand the platform-level compliance protections in place
• Test your unsubscribe flow by sending a test email via a seed segment and confirming the opt-out process works correctly
• Audit any third-party senders or affiliates to ensure they meet the same compliance standards

If you have questions about CAN-SPAM compliance or how DailyStory's features support your compliance program, contact our support team.