Volume II

Issue : 20: October 20, 2004

• VoIP Battle Intensifies in Hong Kong
• New York Court Refuses to Enforce Forum Selection Clause in Website Agreement
• U.S. Supreme Court Confirms ISPs Not Bound to Identify Music Sharing Subscribers
• ISPs Ordered to Divulge Names of British File Swappers
• Privacy Concerns Raised over FDAs Approval of Medical Data Chip
• First State Case under U.S. Federal Can-Spam Act Settles
• 9th Circuit Court of Appeals Affirms Internet Fraud Damages

Home > Volume II > Issue 20: October 20, 2004 > First State Case under U.S. Federal Can-Spam Act Settles

First State Case under U.S. Federal Can-Spam Act Settles

The Can-Spam Act of 2003, which came into effect on January 1, 2004, represents the first U.S. national standard for the sending of commercial email and requires the Federal Trade Commission ("FTC") to enforce its provisions. The Act permits email marketers to send unsolicited commercial email only if it contains an opt-out mechanism by which recipients can prevent future emails; a functioning return email address; a valid subject line indicating it is an advertisement; and the legitimate physical address of the mailer. Although the Act does not allow email recipients to sue spammers directly, it does not prohibit the FTC, State Attorneys General, and Internet service providers from doing so.

In a case filed in June 2004 and marking the first state case under the Can-Spam Act, Massachusetts Attorney General alleged that DC Enterprises and its principal owner were in violation of the Can-Spam Act when they sent bulk unsolicited emails promoting low-interest mortgages. Specifically, the opt-out link contained in the emails was non-functional, there was no indication that the email was an advertisement and letters sent to DC Enterprises' business address did not receive a response. In addition, the emails sought personal and financial information from recipients.

In settlement of the suit, DC Enterprises recently agreed to pay $25,000 and to cease further violations of the Can-Spam Act and other state mortgage broker and advertising laws. Under the Act, a person found guilty of an offence is liable to a fine or to imprisonment for a maximum of five years.

For more information, visit:

http://news.com.com/2100-1030_3-5406062.html