The problem with sending email newsletters to your customers has always been that different states have different requirements.

In the US, Federal laws defining allowed practices for email marketers, which includes email newsletters, are detailed and precise. The Federal Trade Commission (FTC) regulates what is know as the CAN-SPAM law. At present though, state laws are causing more concern, particularly in Michigan and Utah. I’ll begin with these :

New laws in Michigan and Utah for child protection carry custodial sentences for even inadvertent non-compliance.

In essence, the problem is : The states of Michigan and Utah have passed child protection laws with “Do Not Email” registries for individuals to enter minors’ email addresses. Marketers potentially face stiff fines as well as time in prison if they send email to a registered minor’s address and the email contains material, or links to material, which children may not legally see or respond to. If you send commercial email, of any type, and you don’t check the address against the registry before you send it you are potentially liable.

The laws are not clear on what products or services a minor is prohibited from purchasing, viewing, possessing, participating in, or otherwise receiving. However, the State of Utah’s Department of Commerce is attempting to add further definition to what types of advertisements are covered. There’s a pdf here.

The only way to avoid liability is to check every address in your email list against the Michigan and Utah registries before you send them an email.

The fees to start are expected to be 0.007 cents for Michigan and 0.005 cents for Utah per address on your list. The costs for a 100,000 name list will be $1200 per pass. So you’ll need to check each new subscriber as they come, plus the whole list every 30 days. For a 10,000 list which acquires say 100 new subscribers a month. The cost will be $121.20 monthly. A 50,000 list with 500 new subscribers would be $606 monthly. Not cheap.

Any business anywhere in the world with a presence in the US needs to follow these laws. This law does not just apply to businesses in Michigan and Utah, it effects all businesses with a presence in any of the 50 US states.

These are the main provisions of the Federal law :

It bans false or misleading header information. Your email’s “From,” “To,” and routing information – including the originating domain name and email address – must be accurate and identify the person who initiated the email.

It prohibits deceptive subject lines. The subject line cannot mislead the recipient about the contents or subject matter of the message.

It requires that your email give recipients an opt-out method. You must provide a return email address or another Internet-based response mechanism that allows a recipient to ask you not to send future email messages to that email address, and you must honor the requests. You may create a “menu” of choices to allow a recipient to opt out of certain types of messages, but you must include the option to end any commercial messages from the sender.

Any opt-out mechanism you offer must be able to process opt-out requests for at least 30 days after you send your commercial email. When you receive an opt-out request, the law gives you 10 business days to stop sending email to the requestor’s email address. You cannot help another entity send email to that address, or have another entity send email on your behalf to that address. Finally, it’s illegal for you to sell or transfer the email addresses of people who choose not to receive your email, even in the form of a mailing list, unless you transfer the addresses so another entity can comply with the law.

It requires that commercial email be identified as an advertisement and include the sender’s valid physical postal address. Your message must contain clear and conspicuous notice that the message is an advertisement or solicitation and that the recipient can opt out of receiving more commercial email from you. It also must include your valid physical postal address.

Fines can be up to $11,000 for each violation, but may also impact other laws, so can be progressively higher, or even custodial.

Times Business, which rather quaintly runs a money blog on Typepad, produces a few comparison stats to show that this is the case:

“In nearly eight days, the FTSE 100 list of top companies is down around 6 per cent, while the Small Cap index has fallen by nearly 7 per cent. But the big falls have been in the FTSE 250 index of middling companies, off 9 per cent, and on the Alternative Investment Market, which has slumped by more than 10 per cent.”

This shows that “the shares that have flown highest this year, the mid-250 stocks and those on AIM, have been burned most.”

There appears to be a consensus among analysts that certain sectors are looking overblown for smaller companies, for example, oil and gas, mining, property and general financial. “They could be badly hit if, as one or two speakers suggested, the whole stock market continues to look sickly for the next several weeks or even months.”

Steve Pavilina knows a thing or two about making money from a website. In 12 months he’s raised the income from his blog: stevepavlina.com from $4 a day to $200 a day, that’s $73,000 a year for just a few hours a day.

Steve writes: “StevePavlina.com was launched 19 months ago. 12 months ago it was averaging $4.12/day in income. Now it brings in over $200/day. I didn’t spend a dime on marketing or promotion. In fact, I started this site with just $9 to register the domain name, and everything was bootstrapped from there. Would you like to know how I did it?”

Read the 7,300 word article.