Though there are no direct laws prohibiting businesses from sending direct mail, they must take care of specific regulations. Some of them include The Deceptive Mail Prevention and Enforcement Act (DMPEA) (39 U.S.C., Section 3001), Theft or Receipt of Stolen Mail Matter Generally (Title 18 U.S. C., Section 1708), Health Insurance Portability and Accountability Act (HIPAA), and the Federal Trade Commission Act (FTC Act). 

You must take care that you do not violate any rules or sections within these acts when sending mailers via the United States Postal Service or other courier companies. This guide will help you gain a comprehensive and neutral overview of federal, state, and postal regulations governing direct mail marketing in the U.S., helping you protect consumer data and avoid costly regulatory penalties. Let us dig in!

This article covers more about sending direct marketing materials and which regulations to follow!

There is no particular law in the U.S. that prohibits direct mail marketing on either the state or national level. But, it is advisable to stay on the safe side by doing everything correctly and legally to avoid any regulatory issues ahead.

In fact, following consumer data protection laws is beneficial to companies in many ways. Firstly, they can avoid sending mail to people who have no interest in receiving it. Secondly, they can avoid any unnecessary penalties and legal hassles.

The federal and state governments take several steps to protect consumers from unwanted mail and breaches of data privacy. These laws were passed to regulate direct marketing activities and the use of personal data. All US citizens can manage how companies use their details in a number of ways.

Let us know about the most important laws regarding direct mail marketing services:

1. The Deceptive Mail Prevention and Enforcement Act (DMPEA) (39 U.S.C., Section 3001)

The DMPEA is a federal law that regulates sending solicitations and direct mail in a number of ways. As per this act, all non-governmental firms are restricted from sending solicitations implying any connections with the federal government for the payment for or purchase of goods and services.

The act has clearly laid down a lot of restrictions on direct mail marketing, and any type of direct mail that violates any sections of this law will be treated as non-mailable. It can be detained by the USPS, and necessary action shall be taken.

Basically, the USPS can protect people against deceptive advertising and mailing that reaches them in the form of games of chance, skill contests, sweepstakes, and facsimile checks.

There have been reports of many mail items making false claims with fraudulent intentions. For many years, customers have been falling prey to such claims, which is why this federal law has been passed.

The DMPEA also allows people to notify the USPS and opt out of receiving any sexually oriented mail items. Hence, sending out such mail pieces to people who have voluntarily opted out can get you in trouble.

Every direct mail item that includes sweepstakes and contest entries must include the following information compulsorily:

• The name, address, and contact number of every sponsor
• The complete list of rules pertaining to the contest
• All the terms and conditions as applicable to the contest
• Retail value and nature of prizes
• Chances of winning in numeric terms
• A statement mentioning that there is no purchase necessary to enter the contest
• Another statement is that any purchase does not affect any person’s chances of winning

Direct mail marketers sending such contest mailings or sweepstakes are also required to maintain an accurate name-removal system. It allows recipients to opt out of getting such mail items. Additionally, the existence of this system should be disclosed clearly.

The DMPEA has authorized the USPS to impose monetary penalties and stop-mail orders on mail items that go against the regulations of this act.

• A penalty of up to $25,000 can be imposed for mailing up to 50,000 items
• A $50,000 money penalty for mailing between 50,000 to 100,000 items
• An additional penalty of $5,000 up to $1 million for every additional 10,000 items beyond 100,000

This act has been around for around two decades now and is known to protect consumers from misleading mail that causes them to purchase products that they don’t need or want. Marketers can comply with the DMPEA by including proper disclosures in their mail items and following all the rules mentioned above.

Contests, giveaways, offers, and discounts are normal and important parts of direct mail advertising. As much as they boost responses, you need to make sure that you are following the regulations of the DMPEA strictly.

2. Theft or Receipt of Stolen Mail Matter Generally (Title 18 U.S. C., Section 1708)

Theft has become a common issue in today’s time. However, only a few people know that even receiving a direct mail item belonging to someone else with a fraudulent intention counts as theft under this act. A person who steals, obtains, receives, or takes a direct mail item or attempts to do so is punishable under the act. It doesn’t matter whether the mail is stolen or taken from a post office, post box, or a person’s mailbox.

This federal law also applies to theft from a collection box or any other authorized depository. Any person who commits this crime or attempts it is liable to a fine, imprisonment of up to 5 years, or both.

Although this particular law does not directly apply to direct mail marketers, it increases their responsibility to mail accurately. Marketers must strive to overlook data processing carefully and only mail to the right addresses. Nowadays, it is possible to track every single mail item and ensure whether the intended recipient has received the mail.

Certified mail is an excellent option to make sure that only the right person receives the mail. It can detect any kind of mail fraud immediately. Moreover, marketers can use print and mail automation solutions like PostGrid to verify and validate addresses before mailing.

3. Health Insurance Portability and Accountability Act (HIPAA)

The Health Insurance Portability and Accountability Act was signed in the year 1996 with the purpose of protecting the medical records of US citizens. It also aims to modernize the way patient records and reports are processed. HIPAA prohibits businesses from purchasing, renting, or obtaining mailing lists from any medical institution.

However, the act does not stop companies from building their own mailing lists of patients and sending them direct mail items. But, direct mail marketers cannot do so if the person has requested to opt out of receiving such mail from you.

HIPAA requires marketers to send medical data only to the intended recipients. Hence, hospitals, clinics, and all other medical facilities can send bills, reports, receipts, and other medical documents only to the respective patients. Hence, HIPAA is laid down for both medical institutions and all other covered entities that could possibly use mailing lists of patients to communicate about certain medical conditions.

Direct mail marketers can become HIPAA compliant by not obtaining lists from medical institutions and using medical data carefully and sensitively. PostGrid’s direct mail automation solutions enable you to become HIPAA-compliant and mail confidently.

4. National Do Not Mail List

The Direct Marketing Association (DMA) has built a list of people who have opted out of receiving any mail. This list is referred to as the “National Do Not Mail List” and is shared by all its members.

It allows consumers to prevent themselves from receiving junk or unwanted mail. All they have to do is ask the DMA to do so. The DMA then updates the list to exclude such people who have opted out voluntarily. The list is similar to the National Do Not Call List, which enables people to opt out of receiving marketing phone calls for a certain period of time.

The National Do Not Mail List can seem to limit direct mail marketing, but in reality, it is very helpful to businesses and marketing agencies. They can cut down printing and mailing costs and create targeted mailing lists. The list saves companies from infuriated customers who are frustrated with direct mail and are likely to throw away their mail in the bin without even opening it.

Although companies and agencies that are not members of the DMA are not mandated to check their mailing lists against the National Do Not Mail List, doing so can help them save their money and time by sending out direct mail items only to an interested audience. You can simply get your mailing lists cross-verified against the list and stay out of any unpredictable legal disputes.

5. Federal Trade Commission Act (FTC Act)

Direct mail advertising is also regulated by the FTC Act (15 U.S.C §§ 41-58). All direct mail marketing activities should be in compliance with this act, and a violation can lead to legal action.

The act allows the Federal Trade Commission to protect US citizens against deceptive, misleading, or unfair advertising acts related to trade operations. Hence, all profit-making companies are covered under this act. It can also seek redress for the loss or harm caused to consumers.

False advertising claims regarding services, drugs, food, devices, or cosmetics are punishable by a fine not exceeding $5,000, or imprisonment not exceeding six months, or both. If the marketer is convicted of the same violation again, a fine not exceeding $10,000, or imprisonment not exceeding one year, or both can be imposed.

All the other unfair and deceptive practices related to marketing and promotion are subject to injunctive, remedial, and equitable action under the FTC’s Section 5 authority. Such action may include restitution or disgorgement of earnings gained through these practices.

The act prescribes a list of regulations specifically stating certain acts as unfair or deceptive. It also states the requirements established to prevent such acts. Direct mail marketers should be aware of these regulations and requirements to implement this act while conducting marketing campaigns.

The FTC requires direct mail marketers to only include true information in their direct mail items and not mislead their recipients in any way. Furthermore, according to the FTC, an act can be declared as unfair or deceptive if the damage caused, or is likely to cause, is not reasonably avoidable. Marketers are responsible for the possible interpretations of the direct mail content.

Therefore, they should take care to include words and sentences that do not possibly have any other meanings other than what they actually mean.

 Also Read: GDPR Compliance For Direct Mail

6. Drivers’ Privacy Protection Act (18 USC. § 2721-2725)

While purchasing or renting mailing lists, make sure to know the source. Many brokers can sell you lists that can land you in legal trouble. For example, the Drivers’ Privacy Protection Act prohibits gathering data from Departments of Motor Vehicles (DMVs). The act restricts the release or sale of drivers’ personal details such as license numbers.

The DMVs can release such information only when asked for by law enforcement officials, insurance underwriters, private investigators, courts, and government agencies. Selling drivers’ data to direct mail marketers or other marketing agencies is strictly prohibited.

There are many other data protection laws that limit the use, sale, and release of Social Security numbers. Direct mail marketers should be extra careful while dealing with such details and find out the source of their mailing lists before using them.

7. Children’s Online Privacy Protection Act of 1998 (COPPA)

COPPA (15 USC. § 6501 et seq) limits the collection of personal information from children under the age of 13. It is illegal to collect information such as IP address, photos, audio, device identifier, name, email, physical address, and geolocation data from children in a way that breaches the FTC’s rules. Companies that target children must age-screen individuals and apply the rules based on their self-reported age on their websites, apps, and online services.

Hence, before using details about children in your direct marketing activities, you need to check that they are not violating COPPA. Marketers and online service providers are expected to post a notice regarding the details collected from children, the way it is used, and also obtain parental consent in some cases.

8. Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. §1232g)

FERPA restricts schools and educational institutions from disclosing student information without the consent of the students (and parents in some cases). The act also gives certain rights to the students and parents, through which they can challenge the accuracy of the student records.

You, as a direct mail marketer, can comply with the FERPA regulations by not purchasing or renting any lists or data from educational organizations, including schools, universities, and coaching institutes.

9. Gramm-Leach-Bliley Act (15 USC. §§ 6801-6810)

The Gramm-Leach-bliley Act regulates the disclosure and use of non-public personal information by banks and other financial institutions. This act requires all financial institutions to disclose their data privacy policies to customers clearly. Furthermore, it also enables customers to stop these institutions from sharing their personal information with anyone, including direct marketers.

Before sending credit card offers or direct mail with insurance products to anyone, check the FTC’s lists. You cannot send such direct mail to customers that have opted out of sharing their financial information, like bank account numbers.

10. State UDAPs

Several US states have passed “Unfair or Deceptive Acts or Practices” (UDAP) statutes that are similar to the FTC Act. Some of them are related to the Uniform Deceptive Trade Practices Act (UDTPA), which is aimed at protecting companies from any harm inflicted upon them by their competitors.

There are many other UDAP statutes related to the Model Unfair Trade Practices and Consumer Protection Law (UTPCPL) that are more focused on protecting consumers from misleading and fraudulent trade practices.

Make sure to know about the UDAP statutes followed in your state to avoid any issues in the future regarding your direct mail marketing activities.

11. The CAN-SPAM Act

It refers to the Controlling the Assault of Non-Solicited Pornography and Marketing federal act. This law might be exclusively applicable to electronic mail, not physical mail. However, omnichannel strategies using email and direct mail together make it highly relevant. 

There are strict rules for sending commercial emails. Besides, severe penalties of up to $51,744 per email are also there for violations. Your emails must identify the person or business name initiating the message and include a valid physical postal address. Similarly, your direct mail campaigns (omnichannel) should clearly identify the sender and provide a legitimate return address.

 Also Read: Law Office Automation

Sending direct mail items to a targeted mailing list is perhaps the best way to connect with potential customers and encourage them to purchase from you. It is placed at the top of the list of all direct marketing channels like telemarketing and email marketing, although they can be combined and used.

In order to do it rightly, companies should follow all the federal and state laws and stay within the legal framework as it is beneficial to both marketers and customers. However, direct mail marketing is known to ensure better data privacy and security when compared to any other marketing channel. Let us find out how.

With the help of the USPS, it has become very easy to conduct direct mail marketing in the US. They provide you with a detailed set of instructions and direct mail templates that indicate the requirements and omissions of a mail item clearly.

This way, you know what to include and what to avoid. Moreover, the USPS is a governmental body and is committed to following all the laws of the state and federal government. Hence, it has several internal measures to check for compliance and can guide you on how to follow all the laws regarding direct mail marketing.

Direct mail allows marketers to get proof of mailing and delivery through the certified mail option. You can even request a copy of the receiver’s signature. This copy can be extremely important while mailing critical information or mail items that can possibly violate any federal mail laws.

USPS Standards and Mailing Eligibility You Must Know About

Apart from federal and state regulations, you also need to follow the strict USPS operational and regulatory standards. It is highly advisable to read the USPS Domestic Mail Manual (DMM) before mailing anything. This manual highlights the specific legal and physical requirements for mailers entering their postal infrastructure. Otherwise, the postal carrier might reject your mailers, revoke your bulk mailing permit, or enforce costly postal assessments and fines. 

How to Become Eligible for USPS Marketing Mail?

Most businesses use USPS Marketing Mail to send their mailers. This particular service offers discounted postage rates for bulk mailings. However, you must meet specific requirements to avail these rates. 

Requirements

1. Minimum Quantities: Businesses must send batches of at least 200 mailers or 50 pounds of mail. 
2. Content restrictions: You cannot add bills, account statements, or personal correspondence in USPS Marketing Mail. Besides, all the mailers must be identical in shape, size, and weight. 
3. Nonprofit Authorization: Organizations claiming Nonprofit USPS Marketing Mail rates must receive authorization from the USPS. It is prohibited to send ineligible or mail on behalf of a for-profit entity using this mailing class. 
4. Mailing Permit: It is necessary to apply for a mailing permit for sending commercial mailings. 

The Move Update Standard (NCOA)

Businesses claiming presorted or automation postage discounts must verify their mailing lists with the Move Update standard. The National Change of Address (NCOA) database helps in reducing undeliverable mail. These are the compliance requirements: 

1. 95-Day Rule: Businesses must update their mailing lists using a USPS-approved software within 95 days prior to the mailing date. 
2. Financial penalties: USPS might subject your mailers to an assessment charge if your mailing list is not properly updated or exceeds the allowed threshold of outdated addresses. 

CASS Certification

The Coding Accuracy Support System (CASS) is another certification from USPS that ensures the accuracy of delivery addresses. Your mailing list must be validated and standardized against the USPS database if you want to qualify for automation postage discounts. 

Mailpiece Design and Mailability

Next, you also need to take care of the physical legality of the mailpieces. It’s not recommended to use any paper or envelope size in direct mail campaigns. In fact, your company must meet the strict USPS dimensional, weight, and aspect ratio requirements. Ignoring this will violate their automation standards and subject mailers to surcharges.

Consequences of Violating Direct Mail Compliance Laws 

Non-compliance with direct mail regulations might lead to severe consequences for your organization. Violations often result in legal action or penalties. Individual recipients may also take legal action against you, impacting your business reputation. Negative publicity is never good for brand image, credibility, and trust. Building trust after a compliance failure could be challenging and take years. 

Regulatory Risks 

Violating compliance with HIPAA, GDPR, FTC, or PCI-DSS can impact your organization financially and reputationally. This risk is continuously increasing in today’s digitally vulnerable world. Increased control or surveillance on user data might lead you to face such consequences. For example, PCI-DSS non-compliance invites fines, penalties, or might even result in the cancellation of your license. The fine amount can range between $5,000 and $100,000 per month, depending on the severity of the offense. 

Reputational Risk 

Non-compliance with the critical regulations can also invite devaluation of your brand and its credibility in the market. The wounds of reputational damage could be long-lasting, and it will take years to rebuild your positive image. You must know that 70% to 80% of market value directly results from brand equity, intellectual capital, and goodwill. 

Legal Risks 

Direct mail is all about connecting with your audience at a tangible level. Non-compliance with regulatory guidelines can make your campaign go south with legal/criminal action against you. Some cases relate to data security/privacy breaches and money laundering. Your business could face serious lawsuits from your recipients, leading to strict penalties, imprisonment, or refunding any money received from disclosing personal information. 

How to Legally Build Your Direct Mailing List in the US? 

Buy a Trade Show Attendee List 

Many businesses opt for this legal option to attract decision-makers and potential clients. The attendee list of a relevant trade show ensures that you will find like-minded individuals interested in your business and its offerings. This highly targeted audience also comes with top-level decision-makers who might add more value to your company. 

Purchase a Media List 

Check a trade magazine, and you will find well-defined target audiences. Some of these magazines might also be willing to sell or rent their subscriber lists. It could be a legal and cost-effective way to access an exhaustive demographic breakdown. Businesses looking for targeted marketing to save money should consider this option for their direct mail campaign. 

Use Online Content Marketing 

You can also ask for your audience's address via online tools. Content marketing could be your best friend in gathering recipient details in return for valuable information. The best way to initiate this strategy is through gated content like newsletters, case studies, guides, or white papers. You can implement an online registration form to obtain their data legally. The recipient will click on a consent dialog box to allow you to use their information legally. 

Try Every Door Direct Mail (EDDM) 

The United States Postal Service offers its EDDM services as an affordable way to target households within a specific demographic radius. Since you won’t get individual names, building a mailing list is your business's safest and most cost-effective option. Once particular recipients respond to your direct mail collateral, you get the details of those recipients, including their name and address. 

Buy a Cloned List 

Some businesses already have a functional mailing list. They should consider creating individual profiles of the best customers based on interests, demographics, and buying behavior. Then, they can buy a separate list that closely mirrors these profiles. This is a legal method of expanding your reach in your local area or helping you grow into a new location. 

How Does Direct Mail Marketing Ensure Better Consumer Data Protection Compared to Other Channels?

Direct mail does not depend on digital tracking pixels, cookies, or electronic interception. For this reason, physical mail operates under a different set of privacy laws than digital marketing channels like email or telemarketing. With direct mail, authorities are more concerned about the physical chain-of-custody and address sourcing instead of digital surveillance. 

The Critical Role of USPS in Mail Security

The senders might be mostly responsible for how their mailers comply with different federal and state privacy laws. But the USPS heavily regulates the mailer’s physical security once it enters its postal network. It is a criminal offense to tamper with or intercept USPS mail. So, you have an additional layer of physical data protection for your mailers. 

Proof of Compliance Using Certified Mail 

Organizations might want to mail highly sensitive documents via USPS. Thankfully, the postal carrier provides add-on services like Certified Mail and Return Receipt to help you have a verifiable chain of custody. This proof of mailing and the recipient's signature are vital to demonstrate compliance in audits or legal disputes.

Key Legal Differences Between Direct Mail and Email 

Email Marketing Has Stricter Requirements 

Email is primarily subject to consent opt-in laws in the US. The recipient must provide their prior consent to you to receive your marketing emails. You can send them emails until they unsubscribe from your campaigns. It is legally necessary to have an unsubscribe mechanism to fulfill their request within a specific timeframe. 

Direct Mail is More Flexible in Terms of Regulations 

Physical direct mail usually doesn’t require consent from your recipients. Businesses and marketers often send their messages via direct mail. However, you cannot reach someone who is listed on the “Do Not Mail” registry or has opted out directly. A visible opt-out or return address in your mailers is a good practice in some regions, like the UK or Canada. Marketers must comply with data privacy laws, including HIPAA, GDPR, PIPEDA, and the California Consumer Protection Act (CCPA), regardless of the flexible mailing laws. 

Mistakes Marketers Make With Direct Mail Compliance 

No Adherence to the Regional Laws 

You need to understand that there are multiple laws specific to each region. A single approach for every region won’t work and might lead you to severe financial or legal penalties. For example, PIPEDA is a data privacy law that is only applicable in Canada. In Europe, your mailpieces must respect the GDPR guidelines to limit your customer data collection and processing abilities. 

The Use of Outdated Mailing Lists 

Are you worried about undelivered marketing mail? Using obsolete mailing lists might violate data protection laws and send mail to individuals on suppression lists. Using lists without verifying consent or data origin in direct mail campaigns is illegal. 

Excessive Personalization of Collaterals 

Over-personalizing mailpieces with sensitive information like browsing history, financial data, or medical history might violate privacy laws. The recipients must understand how and when your organization collects their data. Regulations like HIPAA, GDPR, PIPEDA, SOC-2, and PCI DSS have strict penalties against this. User consent is always critical to process their data for any purpose. 

Not Including Opt-Out Mechanisms 

Direct mail doesn’t require the implementation of opt-out mechanisms. It is a fact, but compliance experts always advise including these options to avoid fines or consumer complaints. There must be a simple method, like a toll-free phone number, a QR code, or a physical address, to handle opt-out requests. 

 Also Read: Lead Generation Ideas For Law Firms

Following a series of laws and regulations before designing, printing, and mailing direct mail items can discourage direct mail marketers. Sometimes, marketers can violate certain laws because of ignorance or lack of knowledge.

These things can lead to various legal consequences that can affect the reputation and image of a brand. Therefore, it is important to take care to follow all the laws, and the easiest way to do that is by taking the help of an expert.

PostGrid’s print and mail automation solutions can help companies lift their workload and remain compliant with every law related to direct mail marketing. Automating the entire process can help them get rid of manual tasks like printing thousands of sheets, enveloping them, affixing stamps, sealing envelopes, carrying them to the post office, and more.

PostGrid is HIPAA, PIPEDA, SOC-1, and SOC-2 compliant and can help direct mail marketers conduct campaigns in an efficient, accurate, and, most importantly, legal manner.

There are many more benefits of conducting direct mail campaigns through PostGrid’s automated direct mail API. It can help you design attractive mail pieces easily through the in-built templates.

PostGrid can guide you on using consumer data responsibly and correctly. Plus, it can help you build mailing lists (validated and cross-checked against the National Do Not Mail List). Moreover, you can track every direct mail item sent through PostGrid so that you can detect any mail thefts and frauds easily.

Sign up now to keep your mailers compliant with laws regulations direct mail marketing.