Email marketing remains an effective channel for businesses to connect with customers. However, new privacy laws like the California Consumer Privacy Act (CCPA) have added complexity to using this platform. The CCPA gives California residents more control over their data, which means businesses must be more transparent about handling customers’ information. We will cover what you need to know to stay compliant with CCPA for email marketing.

What is CCPA?

The California Consumer Privacy Act (CCPA) is a state-wide data protection law regulating how businesses handle personal information. It gives  California residents the right to know what personal information companies collect, use and share about them. It also stipulates that this information needs to be presented to customers in a transparent and easily accessible way through privacy notices, etc.

Additionally, CCPA grants consumers the right to delete personal information and opt out of the sale of their personal information, providing them more control and a clear understanding of what they’re consenting to.

The CCPA applies to businesses that:

  • Collect the personal information of residents of California.
  • Do business in California.
  • Have an annual gross revenue of over $25 million.
  • Buy or sell the personal information of 50,000 or more California residents.
  • Derive 50% or more of their annual revenue from selling the personal information of Californian residents.

Impact of CCPA on email marketing

The CCPA has changed how marketers execute email campaigns in many ways. Some of them include:

Ensure data transparency in email campaigns 

Under CCPA, businesses must be transparent when collecting data, informing customers before or during data collection about the categories of personal information they collect and how it will be used. These notices should be included in subscription forms and privacy policies. 

Potential fines for non-compliance

Non-compliant businesses can face penalties of $2,500 for each unintentional violation and $7,500 per intentional violation.  While these CCPA fines may seem small compared to other regulations, the costs can add up with multiple violations. For example, 50 unintentional violations can result in fines totalling $125,000. 

An organization will not be held liable if they “cure” violations within 30 days of being notified. However, some violations, like data breaches, can’t be fixed. In addition, private citizens can file civil cases against businesses they believe violated the law. Hence, marketers must align their practices with CCPA standards to avoid legal risks. 

Builds user trust through transparency 

The CCPA allows customers the right to access or delete their personal information. Email marketers must have procedures to respond to these requests within 45 days. They must have the facilities to track and manage consumer data effectively to execute such requests quickly. This demonstrates a company’s commitment to respecting customers’ privacy, which builds trust and enhances loyalty.

Strict adherence to opt-out requests

Businesses must provide an easy way for customers to opt out of selling their personal information. Under CCPA, opt-out requests must be completed within 15 business days of its receipt. 

Although email marketing doesn’t involve selling consumer information, marketers must ensure that users can easily unsubscribe from marketing communications. If any email data is shared with third parties for advertising, users must have the option to opt out of this data sharing.

CCPA requirements for email marketing

Here are some essential CCPA rules to consider before launching email campaigns. 

Notice of data collection

Before collecting data, customers should be provided with a notice of collection. This disclosure informs them about the type of data you intend to collect (such as email, name, and phone number) and should be presented on sign-up pages or in the initial email.

For instance, SpaceNK provides clear notices detailing when and how they collect customer data, such as through registrations and surveys. They specify the types of data collected—name, contact information, and even health data—and explain if data is collected automatically or from other sources.

spacenk ccpa email marketing privacy policy

If you intend to sell consumer data, include a “do not sell link” and a link to your privacy policy on the notice of collection page. 

Screenshot from Plumrocket

Provide at least two contact methods for customers to reach you. For instance, people who want to know how their data is used could reach you via email or VoIP phone service for small businesses

Declaration of data usage for email marketing

State clearly that collected data will be used for email marketing. This declaration should be prominent in your privacy policy and on signup forms. 

Explain what emails customers will receive (e.g., newsletters, promotional offers, product updates) and how frequently they can expect them. This level of transparency builds confidence and lets subscribers know precisely how their information will be used.

Transparency on third-party data sharing

If you share data with third parties, be transparent in your privacy policy. Explain who these third parties are and why data is shared with them. For example, share data with a customer relationship management (CRM) system to manage customer interactions. In that case, let subscribers know its purpose and how it benefits them. 

If you keep all data in-house, emphasize this as a privacy benefit. Swisscows, for example, notes that it collects only the data required to provide services and stores it anonymously in a self-hosted system.

swisscows ccpa compliant email marketing privacy policy

Clear unsubscribe option

Even though the CCPA primarily focuses on opt-outs for data sales, it’s best practice to make it easy for users to unsubscribe from marketing emails. To do this, include a noticeable unsubscribe link in every marketing email and offer a preference center where subscribers can manage their email type and frequency preferences. 

Marketers should also process unsubscribe requests promptly and ensure unsubscribers are not included in future campaigns.

 Data minimization and security 

The CCPA encourages businesses to collect only the data required for email campaigns, such as email addresses and names. 

Avoid collecting sensitive data like social security numbers or credit card details unless absolutely necessary. Also, robust data security measures should be implemented to protect consumer data from unauthorized access or breaches. 

Updated privacy policy 

Review your CCPA privacy policy and include all the relevant details about how customer data will be used and protected. Avoid technical or legal jargon and write in clear and straightforward language so everyone can easily understand, especially less tech-savvy users. 

Ensure the privacy policy is accessible to people with disabilities and responsive across different devices.

Treat every customer as protected by California privacy law

With evolving privacy laws, staying informed about updates is essential to ensure compliance. For instance, after the CCPA, the California Privacy Rights Act (CPRA) was passed as an extension to the law. 

With regulations like the California Privacy Rights Act (CPRA) and potential federal laws on the horizon, consider extending these practices to all US customers.

Wrapping up

CCPA compliance is essential for businesses engaging in email marketing. Ensuring your email campaigns align with legal requirements will help build customer trust and avoid costly fines. Always be transparent about the personal information you collect, and respect customer decisions and requests regarding their data. By following these guidelines, you can ensure your campaigns remain CCPA-compliant.

Disclaimer: This article is for general informational purposes only and should not be taken as legal or professional advice. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of our organization. We do not endorse any products or services mentioned in the article.