Why Compliant Marketing is Non-Negotiable

Launching a new marketing campaign is exciting, but you need to protect yourself against legal problems like lawsuits and fines. Everything you do is governed by strict laws that many business owners underestimate. Compliant marketing may sound annoying to deal with, but it’s a requirement for long-term success.

When companies ignore consent rules, misuse customer content, mishandle personal data, or rely on insecure systems, the cost is far greater than just fines and penalties. Violating marketing laws can destroy trust and harm your brand long-term. This article explains why non-compliant marketing is a bad idea and why treating compliance as non-negotiable is the only option.

Data storage and security violations are costly

When marketing your business, you’re going to store email addresses, names, addresses, and other personal information in a variety of databases you don’t own or control. Every system you use to store and process data needs to be secure, including systems used to process orders, send emails, and manage customer relationships.

Thankfully, software developers create compliant software to support secure data handling. For instance, Cetaris makes SOC 2-compliant fleet maintenance management software that reduces the risk of data breaches and helps fleet managers meet regulatory and contractual obligations. You can find compliant software for just about any industry.

Using end-to-end encryption will ensure hacked data can’t be read, but hackers aren’t the only threat. Sometimes employees are the threat actor, so it’s critical to restrict account access to only people who need it. When employees leave the company, their access should be immediately revoked. And when you don’t have direct, physical control of your data, it’s crucial to conduct regular security audits on the applications you use.

Email marketing permissions

Before you send out any emails to your list, you need to get explicit permission from each recipient. You can’t just assume they’ve given permission because they bought something from you five years ago or filled out an unrelated form. Legitimate permission protects you from fines and prevents your emails from being reported as spam by people who never signed up for your list.

Getting permission first is a legal requirement under GDPR and other data collection laws. Even though GDPR was created in the EU, it’s applicable worldwide, and the penalties can be severe. For instance, in 2023, Meta got slapped with a €1.2 billion fine under GDPR for email marketing violations.

To remain compliant, you also need to keep records of each person’s consent. This might include timestamps, IP addresses, the signup source, and the exact language used at signup. These records will protect you in case of an audit or lawsuit.

To stay compliant, unsubscribes must be honored quickly. Most email marketing programs process unsubscribes automatically, so you don’t need to think about it. But if a user can’t unsubscribe for some reason and contacts you through email, you need to take them off your list as quickly as possible.

You need permission to use testimonials

Publishing praise from customers sounds like a great way to show social proof, but it’s a minefield when you don’t know the FTC rules.

You need a signed affidavit from every person whose testimonial you use. You can’t just take screenshots of their comments or transfer their social media comments to your website in a different format. If you allow customers to submit testimonials through your website, you can get their explicit permission by having them check a box that gives their consent to use their testimonial, name, and location, and affirms that what they claim is true. If you collect testimonials any other way, you’ll need to ask each person to sign an affidavit attesting to the truth of their claims.

You need to personally verify testimonial claims and maintain documented proof

Most business owners don’t know the FTC requires them to personally verify all claims presented in testimonials used for marketing purposes. It’s not enough to have each person affirm that their testimonial is true. You need documented proof in your records. That might require asking your customers for personal information like bank statements that show deposits, client contracts, or other documents.

You can’t use testimonials that aren’t typical

Many business owners mistakenly believe they can publish testimonials from people who got atypical results as long as they state something like, “results not typical” or “your results may vary.” This isn’t true. When the FTC audits businesses, it views testimonials as claims. They don’t want businesses to publish testimonials that fall outside of typical results.

And determining what constitutes “typical results” has to account for everyone who has ever purchased your product or service, whether or not they took action. Unfortunately, in some industries, 80%+ of people never implement what they learn. And if that’s true in your business, according to the FTC, that means 80% of your customers don’t get any results. So you can’t make claims that contradict that statistic, even if 100% of your customers who apply your system get results.

Reputational damage is difficult to recover from

You won’t realize how important customer trust is until it’s gone. Customer relationships can take years to build and seconds to destroy. If you experience a security incident, there’s a good chance your reputation will take a hit. Data breaches are especially harmful and erode customer trust. Reputational damage can even hurt your ability to hire new employees and do business with certain distributors.

Laws change – adopt the highest standards from the start

If you only try to implement the minimum requirements, you’re always going to fall short. Data privacy laws and marketing rules are constantly changing and they only get more restrictive with time. And if you operate internationally, a single compliance standard won’t cover everything. The best approach is to adopt the highest standards from the start and stay on top of changes to applicable laws.

Marketing compliance protects business growth

Compliant marketing isn’t optional. Every email, testimonial, and marketing message needs to adhere to FTC rules and data privacy laws. If you ignore these laws, you’ll expose your business to fines, lawsuits, platform bans, and long-term reputational damage. If you want sustainable growth, build compliance into your systems from the start.