In 2024, Patagonia made headlines after a customer filed a class action lawsuit against the company. The plaintiff claimed that the outdoor retailer embedded “spy pixels,” or trackers, in its promotional emails to gather personal data without her consent. Other customers have filed similar lawsuits against Home Depot and TJX, the parent company of Marshalls and HomeGoods. 

While email is a powerful marketing tool, these cases highlight the importance of using this channel responsibly. Unsolicited or invasive messages don’t just annoy customers — they can damage a company’s reputation. Sometimes, businesses may even face legal repercussions if their promotional emails violate privacy laws. 

The stakes are high, but that doesn’t mean you should delete your subscriber list. By following email marketing ethics, you can promote your business responsibly. These principles focus on: 

  • Respecting your audience’s privacy
  • Being transparent
  • Complying with regulations

The importance of email marketing ethics

Email marketing ethics aren’t just about doing the right thing — they protect businesses and subscribers. 

Most obviously, ethical practices help you comply with legal regulations. Several laws, including the CAN-SPAM Act (more on this later), require businesses to practice transparency and obtain consent. By committing to ethical email marketing, you adhere to these laws and avoid potential penalties. 

Upholding ethical standards also builds trust with your audience. Your customers will know they can count on you to safeguard and use their data responsibly. Plus, relevant and targeted campaigns can boost your open rates and may even increase sales. 

Dave Charest, our Director of Small Business Success, explains why you shouldn’t spam your audience. Source: YouTube

Data privacy and protection

Modern businesses constantly gather information about customers. Every purchase, website visit, and social media interaction creates a digital trail. This data is a goldmine for companies, allowing them to understand customer behavior, personalize marketing, and more.

However, this data collection can feel stressful or even scary for customers. According to a 2023 Pew Research Center survey, 81% of Americans are concerned about how businesses use their personal data. Understanding and safeguarding your customers’ privacy rights can help your business alleviate these fears and practice responsible email marketing

Subscriber data rights

Customers must share personal information, such as their names and email addresses, to subscribe to a mailing list. Subscribers have the right to know how their data will be used and stored — and to opt out whenever they want. 

Many professional organizations stress the importance of subscriber data rights in their ethical codes. For example, the Association of National Advertisers’ Ethics Code of Marketing Best Practices states that marketers “have an ethical responsibility to treat consumer data in a fair and appropriate manner.” This includes honoring requests to delete personal information and preventing unauthorized access to data. 

Protecting personal information

Data leaks are a serious and ever-present threat to companies of all sizes. According to the Identity Theft Resource Center, 672 data breaches and leaks affected more than 241 million people in the third quarter of 2024 alone. 

Here are a few strategies to safeguard your customers’ data: 

  • Only collect necessary information 
  • Encrypt sensitive data 
  • Install a firewall to block hackers 
  • Prevent unauthorized access with multi-factor authentication
  • Use an intrusion detection system to catch breaches immediately 

If you don’t have an in-house information technology (IT) team, consider hiring a cybersecurity consultant to review your data protection measures and recommend ways to improve them. 

Compliance with data protection regulations

Following data protection regulations is essential for keeping your email marketing legal. While there’s no universal law, American businesses should comply with these major regulations. 

CAN-SPAM

Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) regulates email marketing in the United States. This Act was passed in 2003 in response to the growing number of unsolicited and spammy emails consumers were receiving. It created national rules for how businesses communicate with customers through email. Here are the main requirements: 

Subject lines must be accurate and truthful. 

Have you ever received an email with an exciting subject line and been disappointed by the offering on the other side? Maybe the content has nothing to do with the headline, or you feel deceived because the subject line was heavy clickbait. Under the CAN-SPAM Act, companies must ensure their subject lines don’t mislead readers in any way. 

Businesses must explicitly identify commercial emails. 

If your email promotes a company, product, or anything else, you must clearly state this in the message. 

The CAN-SPAM Act doesn’t specify how you must identify that your email is an ad. It simply states that the disclosure should be “clear and conspicuous.” You’re also not required to include this disclosure in the subject line. 

Your sender information must be strictly true. 

It may be tempting to use a witty or sarcastic name in the sender segment of your emails. However, the CAN-SPAM Act requires that the “From,” “To,” and “Reply-To” fields of your emails and the routing information accurately identify you or your business as the sender.

Provide a physical address. 

Under the CAN-SPAM Act, all businesses — including online companies — must provide a legitimate address where email recipients can reach them. If you don’t have a physical address for your business, consider getting a PO box or hiring a virtual mailroom service. That way, you won’t have to share your home address with your subscribers.

Make opting out easy. 

Giving customers the option to unsubscribe from your mailing list isn’t just a courtesy; it’s the law. You must provide a prominent link in every email that recipients can click to opt out if they no longer want to receive your messages. This practice can also increase your conversion rates by ensuring you’re only contacting people who are actually interested in your business. 

GDPR 

As of 2018, the General Data Protection Regulation (GDPR) established standardized data privacy laws across the European Union.  Here are a few key requirements: 

  • Businesses must disclose how they use personal data.
  • Companies must obtain explicit consent to gather customer information.
  • Customers have the “right to be forgotten” and withdraw consent to use their data at any time.
  • Businesses must document evidence of consent.

This regulation also applies to American companies that collect personal data from European citizens or sell products to them. For instance, if a French citizen visits your website and you gather their data, you must comply with the GDPR. Since most businesses will eventually interact with European residents, it’s best to adhere to this regulation proactively. 

Secure storage and handling of email lists

Email lists contain sensitive information, such as customer names and demographic data. To safeguard this information, implement secure storage and handling practices. 

Safeguarding this data starts with choosing a reputable email marketing provider. For example, Constant Contact, restricts physical access to its servers using biometric authentication and other physical security protocols. The platform also uses a commercial intrusion detection system and web application firewalls to protect email lists from cyber threats.

Ethical considerations in data management

Just because the CAN-SPAM Act or the GDPR doesn’t outlaw certain email marketing practices doesn’t mean they’re necessarily ethical or effective to include in your email marketing strategy. Here are those practices. 

Buying email lists

You may have encountered list brokers claiming they can sell you lists of people interested in what you offer. At first glance, this may seem like a fast way to build your mailing list without any effort on your part. However, these claims are almost always too good to be true.  

Even if list brokers can deliver what they promise, purchased email lists are never worth it. The recipients on these lists may receive dozens or hundreds of emails from other marketers who have essentially bought their way into their inboxes. By contacting them, you’re only adding to the avalanche of spam — and you are not making any sales. 

Ethical marketers grow their email lists from scratch. This strategy lets you contact people who actively want to hear from you. Plus, you can segment your email list to create the most relevant messages for each customer. 

Buying traffic 

Buying traffic is legal, but it’s essential to do it ethically. For example, you might partner with a list owner who encourages their subscribers to visit one of your web pages. When they decide to access a piece downloadable content, they can trade with a email subscription. As long as the list owner has an audience with interests matching your offer and market, you’re ready for business. 

What are the repercussions? 

If you violate the CAN-SPAM Act requirements, you could face fines of up to $16,000. The GDPR has even higher penalties. In December 2024, for instance, Italy fined OpenAI 15 million euros for violating the GDPR’s principle of transparency and failing to verify user age. 

Understanding consent rules is critical for ethical email marketing. 

According to the GDPR, explicit consent must be “freely given, specific, informed, and unambiguous.” That means customers understand what they’re agreeing to when they join your mailing list. 

Different types of email list sign-ups 

Many businesses include an unchecked box on their contact forms to invite new users to join their newsletters. Others use opt-in pop-up forms or offer an enticing lead magnet, such as a free gift, for every subscriber. 

Double opt-in practices

Customers sometimes accidentally subscribe to newsletters. To avoid this, activate a double opt-in feature on your website. This mechanism sends new subscribers a confirmation email and asks them to verify that they’re opting in.

Best practices for obtaining subscriber permission

The best way to get subscriber consent is to clearly explain your list’s value proposition. For example, you could tell people they’ll get exclusive discounts or be the first to learn about new product launches. You could also give subscribers more control by allowing them to choose the type of content they receive. 

Avoid deceptive sign-up techniques

Tricking subscribers will harm your brand reputation and could lead to legal consequences. Never use vague wording, pre-checked opt-in boxes, or false promises to fool people into joining your mailing list. You should also be honest about how often you’ll send messages and what they’ll include. 

Transparency in email communications

Practicing transparency will help you comply with CAN-SPAM regulations and build trust with your audience. Be sure to clearly identify the sender in every message, and only include honest subject lines and content. And always avoid misleading marketing language, such as falsely claiming an herbal supplement can cure cancer or lying about its ingredients. 

Opt-out and unsubscribe mechanisms

Even after obtaining permission and delivering high-quality content, some customers may still decide to unsubscribe. The CAN-SPAM Act requires businesses to have simple and straightforward opt-out processes. 

Feedback from Constant Contact to learn why subscribers are leaving your email list. It's important know whether they've consented to your email list, in case they find their way to it through an shady source.
A feedback form helps you understand why subscribers are leaving your email list. Image source: Constant Contact

Constant Contact’s ready-made templates automatically include “Unsubscribe” and “Update Profile” links in the email footers so your subscribers can easily update their subscription preferences. You can also add a comment box to ask for feedback about why they’re leaving. 

Be sure to process unsubscribe requests quickly in compliance with the CAN-SPAM Act. You should also regularly remove inactive subscribers to maintain your sender reputation and improve the bounce rate

Content integrity and respect

Ethical email marketing also involves creating meaningful and valuable content. Set yourself up for success by following these ethical content creation principles: 

  • Avoid spam-like behaviors, such as emailing customers daily or using clickbait subject lines.
  • Research your target audience’s needs and interests, then develop relevant content.
  • Respect subscriber preferences by allowing them to control the messages they receive. 

Ultimately, it’s all about balancing your marketing goals with the subscriber experience. Never let your desire to boost sales cause you to violate your audience’s trust or send low-quality content. 

Building a culture of email marketing ethics

Marketers must navigate many ethical and legal requirements when crafting promotional emails, from obtaining consent to including a physical address. While maintaining these high standards takes effort and time, the investment is well worth it. You’ll strengthen relationships and gain long-term loyalty when you respect subscribers’ privacy and focus on building trust. Take the next step by reviewing your opt-in processes to make sure you’re obtaining explicit consent. You can also follow industry publications like Adweek and Marketing Dive for the latest data privacy news.