The CAN-SPAM Act does not require prior consent to send commercial emails, meaning you can legally email individuals on purchased or rented lists if you comply with all other CAN-SPAM requirements. However, there are several critical considerations that make this practice risky and potentially problematic. Issues such as high spam complaint rates, poor deliverability, privacy concerns, and potential damage to your brand’s reputation can arise when using these lists. Understanding these risks is essential to making informed decisions about your email marketing strategies and ensuring compliance while protecting your business’s credibility.

High risk of complaints and spam reports

Recipients on purchased or rented lists have not directly interacted with your business and may not recognize or trust your emails. This unfamiliarity increases the likelihood of them marking your messages as spam. High complaint rates can result in your email address or IP being blacklisted, severely harming your sender reputation and deliverability rates. This not only affects your current campaign but can also impact your future ability to reach legitimate subscribers.

Deliverability issues

Email service providers (ESPs) like Optimail Pro monitor the engagement rates of email campaigns, including opens, clicks, and complaints. Emails sent to purchased or rented lists often have low engagement and high bounce rates, as many addresses may be outdated or inactive. Poor deliverability can lead to your future emails being filtered into spam folders or blocked entirely, reducing the effectiveness of your email marketing efforts and wasting your marketing budget.

Privacy concerns and potential legal issues

While CAN-SPAM doesn’t require prior consent, other regulations like the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) have stricter rules regarding consent and personal data usage. If your recipients are subject to these laws, you could face legal repercussions. Even if you’re CAN-SPAM compliant, using purchased or rented lists without proper consent could result in fines or legal action under these other privacy regulations.

Brand reputation

Sending unsolicited emails to individuals who have not expressed interest in your brand can create a negative perception and erode trust in your company. Maintaining a positive brand image is crucial for long-term business success, as negative perceptions can harm customer loyalty and reduce the effectiveness of future campaigns. A tarnished reputation is difficult to rebuild and can have lasting implications for your business.

Unsubscribes and compliance management

Managing opt-outs and ensuring compliance for purchased lists can be challenging, particularly if the list contains outdated or incorrect information. Please honor opt-out requests accurately and promptly to avoid CAN-SPAM violations and increased costs and resource burdens for compliance management. This could expose your business to penalties and undermine the trust of those who receive your emails.

While it may be legal under the CAN-SPAM Act to email individuals on purchased or rented lists, the associated risks and potential negative consequences make it a poor practice. Organizing your email list through opt-in methods is generally more effective and sustainable. This strategy results in higher engagement, lower spam complaints, and a more positive brand image, ensuring compliance with various regulations and fostering trust with your audience.