Hi @Microsoft Q & A ,
By "label", do you mean message encryption like "Confidential" or "Do Not forward"? If this is the case, yes, this can be achieved via mail flow rule:
- In EAC, go to Mail flow > Rules > Add a rule, click Create a new rule.
- Specify the name for the rule. For the rule condition, select "The recipient", "is a member of this group". In the pop up flyout, select the group or manually type the full email address of the group (It can automatically resolve if it's a valid address.).
- For the rule action part, select "Modify the message security", "Apply Office 365 Message Encryption and rights protection", select an RMS template accordingly.
Reference: Define mail flow rules to use Microsoft Purview Message Encryption.
If you are referring to sensitivity labels, you can create an auto-labeling policy, set the location as Exchange, create a policy rule to apply labels when the recipient is a member of a particular rule. More detailed instructions, you may refer to:
How to configure auto-labeling policies for SharePoint, OneDrive, and Exchange
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