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We're using Mailgun to send promotional email messages, and we have a separate subdomain set up for that purpose (mail.example.com). This domain is also specified in the Sender header. On the other hand, the address in the From header uses an example.com domain.

This works fine on the majority of major email providers, but Outlook has decided not to use the display name and address specified in the From header and replaces it with [email protected] <[email protected]> on behalf of News <[email protected]>. This looks... less than professional.

I understand it would raise suspicion if the domains were completely different, but in our case, one is a subdomain of the other.

Is this behavior described somewhere in the RFC, or is it just Microsoft's policy? Are there any workarounds, besides changing the Sender or From domains?

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The sender and from must match to prevent that problem.

I can't find the policy, but yes it's to tighted their protections against not wanted email.

You are not alone in that problem;

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