Home > News > FTC Levies Largest Fine Yet for Can-Spam Act Violations • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

FTC Levies Largest Fine Yet for Can-Spam Act Violations

FTC Levies Largest Fine Yet for Can-Spam Act Violations
Get XBIZ News
Mar 24, 2006 10:35 AM PST    Text size: 
SAN FRANCISCO — In the largest penalty yet for illegal spam, Jumpstart Technologies has agreed in a consent decree to pay a $900,000 civil penalty for violating the Can-Spam Act.

With the penalty, the Federal Trade Commission said it is ramping up fines for Internet marketers – adult and mainstream – now that the Can-Spam (Controlling the Assault of Non-Solicited Pornography and Marketing) Act has been on the books for several years.

“The trend is aggressive fines,” FTC spokeswoman Linda K. Badger told XBiz. “We’re trying to take the pockets out of companies that violate Can-Spam. This company will be able to afford the fine without going out of business. The fines have to hurt.”

The FTC said Jumpstart was fined for its FreeFlixTix promotion, which served as a vehicle to provide direct marketing opportunities to online advertising partners and to collect marketing data to sell to third parties.

Jumpstart operates numerous companies, including Bonus Bonez, Harding Innovations, Infinity Brands and Launchpad Services. It also operates such sites as CrushLink.com and SomeoneLikesYou.com.

The San Francisco-based company is operated by Greg Tseng, according to the California Secretary of State in its LLC filing.

The FTC’s complaint alleged that Jumpstart offered free movie tickets to consumers in exchange for the names and email addresses of five or more of their friends. Jumpstart then sent them commercial emails with the consumer’s email address in the “from” line and a seemingly personal “subject line,” such as, “Hey,” “Happy Valentine’s Day,” “Happy New Year,” “Movie time. Let’s go,” or “Invite.”

Jumpstart also made it look as though the consumer had written the message text, Badger said. With this method, Jumpstart’s emails circumvented spam filters and were opened by consumers who thought they contained personal correspondence.

“The company sent it purposefully and they devised this technique to lure you or your friends,” Badger said. “It intentionally used personal messages as a cover-up for commercial messages.”

With the negotiated fine, Jumpstart also is permanently prohibited from its unlawful practices, according to a consent decree signed by the company.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

EDUCATIONAL FEATURES

Understanding 'Camming Sociology' Can Enhance Interactions

After working for six years in the live cam industry as a cam model and almost double the amount of time studying — while working simultaneously — how relationships work in cyberspace, I am... More »

Proper Fisting Techniques for Gentle Stimulation

Does the phrase “anal fisting” make your sphincter clench in terror? Does it seem like an urban legend or an extreme party trick? Most people scoff at the idea of trying it because it sounds... More »

Camming Games, Contests Keep Customers Engaged

Last issue, I talked about the importance of changing up the ambience in a cam model room via new décor and small visual tweaks, to keep viewers engaged long-term. This time, I’d like to discuss... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida

XShow 18+ 2017

Jun 01 - Jun 03
Moscow, Russia

Cam Summit

Jun 02 - Jun 04
Lloret de Mar, Spain
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!