Is a notification email about a failed transaction considered transactional and CASL compliant?
Summary
What email marketers say9Marketer opinions
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.
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.
Email marketer from StackExchange advises that failed payments are usually handled by a re-try mechanism. They also state that CASL is mainly targeted at email marketing promotions, and order confirmation and invoices etc are generally ok.
Email marketer from Mailjet shares that transactional emails are triggered by a specific action and contain information relevant to that action. A failed transaction notification fits this description, making it a transactional email.
Email marketer from Shopify shares that transactional emails are automated messages sent to customers after they’ve taken a specific action on your website. These emails include order confirmations, shipping updates, and password resets.
Email marketer from HubSpot explains that even transactional emails must comply with CASL's sender identification and unsubscribe mechanism requirements. If the primary purpose is to provide transaction information, it's likely compliant, but ensure the email includes the necessary disclosures.
Email marketer from Reddit mentions that while they are used for transactional purposes, sometimes they are used for remarketing, so be sure to check how it is worded. If it looks promotional it might be.
Email marketer from Reddit mentions that if the email is purely informative and related to the transaction (failed payment), it should be considered transactional. Just ensure you're not adding marketing fluff.
Marketer from Email Geeks explains that the message would implicitly invite to purchase again, but sending the email is legitimate because people who think they ordered something must be notified it failed, especially if they didn't pay already.
What the experts say5Expert opinions
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.
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.
Expert from Spamresource clarifies that even transactional emails must include sender identification and an unsubscribe mechanism. While the content may be transactional, compliance with CASL's basic requirements is still necessary.
Expert from Spamresource explains that emails about completing, facilitating, or confirming commercial transactions aren't considered commercial. If the primary purpose is to notify about a failed transaction and enable retrying, it's likely transactional and not requiring consent.
Expert from Email Geeks thinks a "We are sorry your payment didn't process, you were not charges, please try again" message would be transactional if worded properly because it's a system error message. It should be promotion-free.
What the documentation says3Technical articles
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.
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.
Documentation from CRTC outlines that implied consent exists when there's an existing business relationship. If the failed transaction occurred during an attempt to establish a business relationship, sending a notification email might fall under implied consent.