On May 12, 2008 the Federal Trade Commission issued its long awaited final set of rules under the CAN-SPAM Act of 2003 (the “Act”). The rule:

  • Modifies the term “sender” with respect to multi-advertiser e-mails;
  • Clarifies the opt-out request process;
  • Defines the term “person”; and
  • Clarifies the meaning of “valid physical postal address” of the sender.
  • The accompanying report:
  • Explains the FTC’s interpretation of the Act’s application to affiliate marketing programs and tell-a-friend campaigns.

The rule will take effect on July 7, 2008.

Many B2C companies are beginning to explore marketing to consumers’ wireless devices using text messaging (“SMS,” or “short message service”) and MMS messaging (“Multi-media Messaging Service”). They may even target their promotions based on where the recipient is physically located using the wireless device’s GPS technology. They also may target their promotions to teens and tweens. What legal issues should companies be aware of as they navigate through this relatively new area?