Summary
A notification email about a failed transaction is generally considered transactional and may be CASL compliant if it adheres to specific guidelines. The key is that the primary purpose of the email must be to inform the customer about the failed transaction and provide information directly related to resolving it. The email should avoid promotional content and comply with CASL requirements such as including sender identification and a functional unsubscribe mechanism. Implied consent may apply if the recipient was in the process of completing a transaction, but this must be handled carefully to avoid crossing the line into promotional content.
Key findings
- Transactional if Informative: The email is considered transactional if its primary purpose is to inform the customer about the failed transaction.
- CASL Requirements Still Apply: Even transactional emails must comply with CASL requirements, including sender identification and unsubscribe options.
- No Promotional Content: Including marketing or promotional content can reclassify the email as commercial and subject it to CASL's consent requirements.
- Implied Consent Possible: If the recipient was actively trying to complete a transaction, implied consent might allow sending the notification, but caution is needed.
- Completing Transactions: Emails used to complete or facilitate transactions are not always seen as commercial and may not require consent.
Key considerations
- Intention and Wording: Carefully craft the email's wording to ensure its primary intent is to inform, not to promote or sell.
- CASL Compliance: Always include sender identification and a functional unsubscribe mechanism, even in transactional emails.
- Avoid Promotions: Refrain from adding any marketing fluff or promotional offers within the email.
- Implied Consent Handling: Use implied consent cautiously and avoid sending promotional material without explicit consent.
- System Error Focus: If the message frames the failed transaction as a system error, ensure it remains focused on that error and the resolution.
What email marketers say
9 marketer opinions
The consensus is that a notification email about a failed transaction can be considered transactional and potentially CASL compliant if its primary purpose is to inform the customer about the failed transaction and provide related information or steps to resolve it. However, it must avoid promotional content and comply with CASL's requirements for sender identification and unsubscribe mechanisms. The intent and wording of the email are crucial factors.
Key opinions
- Transactional Nature: Notification emails triggered by a failed transaction, providing information relevant to that action, are generally considered transactional.
- CASL Compliance: Even if transactional, emails must still comply with CASL's requirements for sender identification and unsubscribe mechanisms.
- Primary Purpose: The email's primary purpose must be to inform about the failed transaction, not to promote other products or services.
- Implied Consent: Sending emails about failed transactions may fall under implied consent if the user was actively trying to complete a transaction.
Key considerations
- Wording and Intent: Ensure the email wording is purely informative and avoids promotional language or marketing content.
- Required Disclosures: Include necessary sender identification and a functional unsubscribe mechanism as required by CASL.
- Avoid Marketing: Refrain from adding marketing fluff or upselling opportunities within the transactional email.
- Review Laws: Make sure the email meets all requirements of all countries that the email is being sent to.
Marketer view
Marketer from Email Geeks agrees there's something implied but since these people reached out for a service and the email is responding back about that service, it shouldn't violate any regulations.
16 Feb 2025 - Email Geeks
Marketer view
Email marketer from Litmus emphasizes that understanding the intent of the email is crucial. If the email's primary purpose is to inform the customer about a failed transaction, it's likely transactional. However, it should still adhere to CASL's identification and unsubscribe requirements.
18 Dec 2024 - Litmus
What the experts say
5 expert opinions
The provided expert opinions suggest that a notification email about a failed transaction can be considered transactional and potentially CASL compliant if its primary purpose is to inform the recipient about the failed transaction and guide them to resolve it, without including promotional content. It is crucial to ensure that the email includes sender identification, an unsubscribe mechanism, and adheres to CASL's basic requirements. Sending a notification may fall under implied consent if the user was in the process of completing a transaction.
Key opinions
- Transactional Nature with Proper Wording: A message informing the user that their payment didn't process and encouraging them to retry can be transactional if worded appropriately and free of promotions.
- Non-Commercial if Transaction-Focused: Emails focused on completing, facilitating, or confirming commercial transactions are generally not considered commercial under CASL.
- CASL Requirements Apply: Even transactional emails must adhere to CASL's sender identification and unsubscribe mechanism requirements.
- Primary Purpose Determines Compliance: The email's intent must be solely to inform about the failed transaction and guide resolution, without commercial solicitations.
- Implied Consent Consideration: Sending such notifications may be permissible under implied consent if the user was in the process of completing a transaction, but caution is advised to avoid promotional content.
Key considerations
- Promotion-Free Content: Ensure the email contains no promotional content to maintain its transactional nature.
- Clear Sender Identification: Include clear sender identification as required by CASL.
- Functional Unsubscribe Mechanism: Provide a working unsubscribe mechanism even in transactional emails to comply with CASL.
- Careful Handling of Implied Consent: Exercise caution when relying on implied consent and avoid crossing the line into promotional content without explicit consent.
- Understand Primary Purpose: Always focus on the primary purpose of informing about the failed transaction and assisting in resolution.
Expert view
Expert from Word to the Wise shares that understanding the primary purpose is critical. If the email’s intent is solely to inform the recipient about the failed transaction and guide them to resolve it, without adding commercial solicitations, it should be considered transactional.
26 Aug 2024 - Word to the Wise
Expert view
Expert from Word to the Wise explains that sending a notification about a failed transaction may fall under implied consent if the user was in the process of completing a transaction on your site. However, this needs to be handled with care to avoid crossing the line into promotional content without explicit consent.
8 Jul 2022 - Word to the Wise
What the documentation says
3 technical articles
According to the documentation provided, CASL applies to commercial electronic messages (CEMs), but transactional emails are often exempt if they solely facilitate a completed or ongoing transaction. Transactional emails should primarily contain information about the transaction, as including marketing content could reclassify them as promotional. Additionally, implied consent may exist if the failed transaction occurred during an attempt to establish a business relationship, allowing for a notification email to be sent.
Key findings
- CASL and CEMs: CASL applies to commercial electronic messages (CEMs) that encourage participation in a commercial activity.
- Transactional Email Exemption: Transactional emails are often exempt from CASL if they solely facilitate a completed or ongoing transaction.
- Content Restrictions: Transactional emails should primarily contain information about the transaction, and marketing content can reclassify them as promotional.
- Implied Consent: Implied consent may exist if the failed transaction occurred during an attempt to establish a business relationship.
Key considerations
- Email Content: Ensure the email content is strictly transactional and avoids any marketing or promotional material.
- Primary Purpose: The email's primary purpose must be to facilitate the transaction and not to promote other products or services.
- Consent Basis: Determine whether implied consent is applicable based on the circumstances of the failed transaction and the existing relationship with the recipient.
Technical article
Documentation from Canada.ca explains that CASL applies to commercial electronic messages (CEMs), which are messages that encourage participation in a commercial activity. Transactional emails are often exempt if they solely facilitate a completed or ongoing transaction.
30 Jun 2021 - Canada.ca
Technical article
Documentation from SendGrid indicates that transactional emails should primarily contain information about the transaction. Including marketing content could reclassify the email as promotional, requiring consent under CASL.
8 May 2024 - SendGrid
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