Learn the key Differences Between Transactional vs. Marketing Emails | Privacy and Electronic Communications Regulations (PECR)

If you’ve ever bought something online or signed up for a service, chances are you’ve received transactional emails (order confirmations) or marketing emails (promotional messages). These emails might look similar in your inbox, but they serve very different purposes—and businesses must treat them differently too.

In the UK, email communications are covered by the Privacy and Electronic Communications Regulations (PECR). This law helps protect privacy and ensures businesses don’t send unwanted marketing.

What is a transactional email?

A transactional email (also known as a service email) is the kind of message you get when you’ve taken an action— like placing an order, signing up for an account, or asking to reset your password. These transactional emails are required to complete a transaction or give you important information that you’d expect to receive.

Here are a few everyday examples:

• An order confirmation transactional email after you buy something online
• A shipping update telling you when your parcel will arrive
• A message with a link to reset your password
• An appointment reminder from your dentist or GP

Because these service emails are part of a service you’ve asked for, you don’t need to give permission for a company to send them. They’re allowed to email you in order to complete your transaction or keep you informed. That said, these emails should stick to the point. If they start including ads or offers you didn’t ask for, that’s where it becomes a marketing email.

What is a marketing email?

A marketing email (also known as a promotional email) is sent to promote something under PECR. It might be a new product, a sale, an event, or even just a company newsletter designed to keep you engaged. Marketing emails are often sent to many people at once and are clearly meant to encourage you to take action—like clicking a link or making a purchase.

Examples of marketing emails include:

• A discount offer for your next shop
• A company newsletter with company news or new arrivals
• A renewal reminder to renew a subscription or try a new service
  

Because marketing emails are considered advertising under PECR, businesses must have explicit consent and provide an opt-out.

Why does the difference matter?

It matters because marketing emails are more tightly regulated under UK law. Businesses can’t just send you promotional emails because they have your email address. They need to have your consent, which usually means you’ve actively said “yes” to receiving marketing (for example, by ticking a box when signing up).

Here’s a simple way to tell the difference:
• If the email is something you expect to receive because you’ve done something (like placed an order), it’s transactional.

• If the email is trying to get you to do something more (like make another purchase or attend an event), it’s marketing.

Mixing the two can cause problems. For example, if a receipt email also includes a big banner ad for another product, it will then count as marketing—even if the main reason for the email was transactional.

PECR requirements for consent

The UK’s PECR law says businesses must get clear consent before sending marketing emails to individuals. That means no pre-ticked boxes and no hidden consent. Individuals must make a positive choice to receive marketing.

However, there’s something called the “soft opt-in” rule that gives businesses a little more flexibility—but only in certain cases.

The soft opt-in applies if:

1. You gave your email address during a sale or when negotiating a purchase, and
2. The business is promoting similar products or services, and
3. You were given a clear chance to opt out when they collected your email (and provided an opt-out every email since).

So, for example, if you bought a book online and the same company emails you about a new book release, that might fall under soft opt-in—as long as you’re offered the opportunity to opt out at the end of every communication.

This rule does not apply if:

• You haven’t bought anything (just signed up for a newsletter, for example)
• The email is about completely unrelated products
• You’re contacting someone for the first time with no prior relationship

Businesses must be careful not to abuse the soft opt-in. It’s not a free pass to send anything they like.

What’s allowed and what’s not?

Let’s look at a few real-world scenarios to make this easier to understand:

Allowed (Transactional): You book a hotel. They email you with check-in details and a confirmation. This is necessary and expected. This type of communication is necessary to complete the purchase.
Not Allowed (Marketing without consent): The same hotel emails you two weeks later offering a discount on your next stay—but you never agreed to receive marketing. This would then be classed as marketing.

Allowed under soft opt-in: You bought a laptop online and the store emails you a few weeks later offering a discount on a mouse or keyboard. If they followed the soft opt-in rules, this might be fine.

Not Allowed (Too much marketing in a transactional email): You reset your password, and the email also advertises five new products with “limited time offers”. This turns a service email into a marketing email—and that’s not allowed without your consent.

How the law is enforced

The UK’s Information Commissioner’s Office (ICO) is the regulator in charge of enforcing privacy laws like PECR. If a company sends marketing emails without proper consent, they can be investigated and fined.

For example:

• In 2023, HelloFresh was fined £140,000 by the ICO for sending over 30 million marketing emails and texts without proper consent.
• Royal Mail was fined after mistakenly emailing over 200,000 people who had opted out of marketing.

These examples show that even big brands can get it wrong. But they also highlight how seriously these rules are taken.

What about emailing businesses?

To email Business to Business (B2B) you don’t need to first obtain their consent. However, you still need to provide an opt-out button at the end of your message. Mass emailing services such as Mailchimp accommodate for this. If the email is someones name such as John.Donn@company1.com this is still considered B2B. Even if the full name is included. However, if the individual John.Donn@company1.com is a sole trader, so not Limited company this would fall into Business to Consumer (B2C). However, if this sole trader uses a generic email address such as info@company1.com you can still email them under the exception. The best approach is to check if the companies are limited before emailing them.

On the other hand, to email a B2C you first need to obtain their consent as discussed above. This could be through an email sign up on your website or asking individuals when if they want to opt in when meeting them face to face. You can also buy lists online from email marketing providers such as Zoominfo but you will still need to check the providers terms and conditions to make sure that they have obtained the data legally. The onus is upon the company you are buying the data from to have done these checks.

Opting-out of marketing

Once a consumer opts out you will then need to keep a list of their choice to avoid contacting them again. You are still allowed to send them transactional messages. As mentioned about this is expected. If they then want to opt out of all communication and delete their account, you must delete all their data and keep this on a retention list. You should retain the minimum legally required such as credit card information (legal requirement for 6 years) and their email address to further identify them for opt-outs.

What should businesses do to stay compliant?

Below are some practical steps businesses can take to stay on the right side of the rules:

• Use reliable email software that tracks consent and helps manage unsubscribes properly

• Get clear consent for all marketing emails (unless you qualify for soft opt-in or your marketing a B2B and follow it properly)

• Keep marketing and service emails separate—don’t add promotions into important account messages

• Make it easy to unsubscribe—every marketing email should include a clear opt-out option

• Explain why someone is receiving the email—especially if they’ve opted out of marketing but are still getting service updates
  
  

Final thoughts

Knowing the difference between transactional and marketing emails isn’t just useful for businesses—it matters to everyone. We all want to be informed when we need to be, but we also want to be protected from unwanted spam.

For businesses, following the rules helps build trust and shows respect for your customers’ privacy. For the public, understanding your rights means you’ll know what you’ve agreed to—and what you haven’t.

If your inbox is full, remember: you always have the right to say no to marketing, and companies have a duty to respect that.

If you’d like help understanding your marketing responsibilities or reviewing your email practices, contact WDPS for expert support.

Need help with marketing laws?

If you have any questions about your own marketing please send us an email call us on +44 (0)79769 39016 
(9.00 am – 6 pm)

Westbrook Data Protection Services Limited
2nd Floor, Midas House, 62 Goldsworth Road
Woking, Surrey, GU21 6LQ

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