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Is a notification email about a failed transaction considered transactional and CASL compliant?

Summary

A technical glitch causing failed transactions can be a critical issue for customers, who might mistakenly believe their purchase was successful. Notifying these individuals via email is essential for good customer service and transparency. The central question is whether such a notification is considered a transactional email, particularly under regulations like Canada's Anti-Spam Legislation (CASL), especially if the recipients are not already subscribed to marketing communications.Generally, a transactional email is triggered by a specific user action or system event and contains information directly related to that action or event. The key differentiator for compliance, particularly with CASL, is the absence of commercial or promotional content. If the email solely informs the user about the failed transaction and guides them on how to resolve it without any marketing pitches, it typically retains its transactional status and is compliant.

What email marketers say

Email marketers often navigate the fine line between informing customers and triggering anti-spam regulations. In the case of a failed transaction notification, marketers generally agree that such an email is indeed transactional, provided its content is carefully managed to avoid any promotional overtures. The consensus leans towards prioritizing essential communication that directly relates to a user's interaction or system event, ensuring transparency and customer satisfaction without falling afoul of compliance laws like CASL.

Marketer view

Marketer from Email Geeks explains that when a technical glitch causes transactions to fail, notifying customers via email is a legitimate transactional communication. It is essential for transparency, especially if customers believe their purchase was completed.This type of email serves a crucial informational purpose, informing users about the status of an expected service or interaction.

06 Nov 2020 - Email Geeks

Marketer view

Marketer from Email Geeks suggests that a message such as "We are sorry your payment didn't process, you were not charged, please try again" would be considered transactional if phrased correctly. The primary function of such an email is to communicate a system error, not to promote.It must be entirely free of promotional content to maintain its transactional classification.

06 Nov 2020 - Email Geeks

What the experts say

Experts in email deliverability and compliance generally affirm that a notification about a failed transaction qualifies as a transactional email. Their perspective often centers on the email's primary intent: to provide necessary information related to a user's specific interaction with a service or product. They stress the importance of maintaining strict adherence to non-promotional content to ensure the email remains compliant with anti-spam legislation and avoids deliverability pitfalls that could lead to being flagged by ISPs or landing on a blocklist.

Expert view

Expert from Email Geeks confirms that notifying users about a failed transaction is absolutely legitimate. Customers who believe they have completed a purchase must be informed if it failed, especially if no payment was processed.This type of message falls squarely into the transactional category as it directly relates to a user's initiated activity and clarifies a critical status.

06 Nov 2020 - Email Geeks

Expert view

Expert from Email Geeks states that such emails typically do not violate compliance rules like CASL because they are responsive to a user's engagement. The communication addresses a direct query or action concerning a service.The implied context of the user having initiated a service or transaction makes these notifications non-commercial in nature.

06 Nov 2020 - Email Geeks

What the documentation says

Official documentation from various compliance bodies and email service providers clarifies the distinction between transactional and commercial emails, especially concerning anti-spam laws like CASL. These documents consistently emphasize that transactional emails are typically exempt from explicit consent requirements because they are necessary communications related to a user's action or account status. The critical element across all documentation is the absence of any promotional intent or content, ensuring the email serves a purely informational or facilitative role.

Technical article

Documentation from Mailchimp explains that CASL contains specific exceptions to the consent requirement for certain transactional messages. However, these messages still necessitate compliance with other sender requirements.It is vital to understand that while consent may be exempted, other aspects of the law, such as sender identification, must still be met.

22 Mar 2025 - Mailchimp

Technical article

Documentation from Klaviyo defines CASL as a Canadian federal law designed to protect consumers from spam, electronic threats, and other digital technology misuses. This broad scope means email marketers must be diligent in their practices.Understanding the legislation's intent helps in correctly classifying emails and ensuring all communications adhere to legal standards.

22 Mar 2025 - Klaviyo Help Center

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