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Question

Difficulty: MediumCAN-SPAM Act

Sarah, an insurance producer, is designing a commercial marketing email campaign to send to a list of prospective clients. To strictly comply with the federal CAN-SPAM Act, which of the following combinations of requirements must be met in her email campaign?

  1. The email must include a valid physical postal address and provide a clear opt-out mechanism that is processed within 10 business days.Answer
  2. B
    The email addresses must be verified against the National Do Not Call Registry prior to sending, with opt-out requests processed within 31 days.
  3. C
    The email must be restricted to consumers with whom the producer has an established business relationship to avoid false advertising claims.
  4. D
    The email must include the producer's state license number and provide an opt-out mechanism that is processed within a 30-day statutory timeframe.

Answer

The email must include a valid physical postal address and provide a clear opt-out mechanism that is processed within 10 business days.
The correct answer accurately states two primary requirements of the CAN-SPAM Act: every commercial email must include the sender's valid physical postal address, and the sender must provide a clear opt-out mechanism that is honored within 10 business days.

Step-by-Step Solution

1
Identify the relevant law governing the scenario.
The scenario involves commercial marketing emails, which are governed at the federal level by the CAN-SPAM Act.
Applying the correct federal regulation prevents confusion with telemarketing rules or state insurance laws.
2
Recall the mandatory disclosure and processing requirements under the CAN-SPAM Act.
The Act requires accurate headers, a non-deceptive subject line, the sender's valid physical postal address, and a clear method to opt out.
These are the statutory elements required to ensure the message is not deceptive and allows consumers to stop future communications.
3
Determine the statutory timeframe for honoring opt-out requests.
Any opt-out request must be honored within 10 business days.
This specific deadline is strictly enforced by the FTC for all commercial email solicitations.

Key Concept

CAN-SPAM Act Compliance for Commercial Solicitations
Estimated Time:1m 0s
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Topics

CAN-SPAM Act

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