Learn what the CAN-SPAM Act requires of small business email: who is covered, opt-out rules, the 2026 FTC penalty and key dates, in slides and a table.
Last reviewed October 29, 2026 · General information, not legal advice
General information only, not legal advice. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm. Laws change: confirm with the official source or a licensed attorney before you act. Read the full notice.
The CAN-SPAM Act is a 2003 federal law that sets ground rules for commercial email. It does not ban marketing email and does not require permission before you send it, but it requires honest messages and an easy way to stop receiving them. The Federal Trade Commission (FTC) enforces it. This guide is for owners of small businesses, freelancers and professionals who send newsletters, promotions or sales emails. The checklist page turns the rules into a pre-send routine called the Eight-Latch Send Check.
Slide show: CAN-SPAM in seven slides
What it does
Sets rules for commercial email. It does not require permission first, but it requires an easy way to opt out.
Who it covers
Any email whose main purpose is to promote a product, service or commercial website. Business-to-business email counts.
The rules
True sender details, an honest subject line, an ad label, a postal address, a clear opt-out, prompt opt-out handling and oversight of vendors.
A key number
The opt-out method must keep working for at least 30 days after the message is sent.
The deadline
Stop sending within 10 business days after an opt-out request arrives.
The penalty
The FTC can seek up to $53,088 per separate email in violation. The 2025 amount still applies in 2026.
Tip
A business stays responsible for emails that a vendor, agency or affiliate sends on its behalf.
Who is covered
Message type
What applies
Commercial email: main purpose is to advertise or promote a product, service or commercial website
All the requirements. The definition has no consumer-only limit, so business-to-business email is included.
Transactional or relationship email: confirms an agreed deal, warranty or safety notices, account changes, job or benefit information, goods or services already owed
Not treated as commercial, but its header information still may not be materially false or misleading.
Mixed content
Treated as commercial if the subject line would lead a reasonable reader to see an ad, or if the transactional content does not come mainly at the start of the body.
Who is liable
The sender: whoever initiates the message and whose product, service or site is promoted. Hiring a vendor does not shift responsibility.
State laws
Specific state email laws are preempted, except those that prohibit falsity or deception.
How it touches your taxes and payroll
A firm newsletter that promotes services is commercial unless it meets the transactional tests in 16 CFR 316.3. Information about a recipient's current job or benefit plan is listed as a transactional or relationship purpose. Penalties paid to the government for violating a law are generally not deductible under Internal Revenue Code section 162(f), with narrow exceptions for restitution or compliance amounts that the order identifies. See business expense deductions. Online sellers, who email customers constantly, are covered in ecommerce and online sellers.
