FTC Levies Largest Fine Yet for Can-Spam Act Violations

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.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

FTC Weighs Reboot of 'Click to Cancel' Rulemaking Process

The Federal Trade Commission has invited public comments on a petition to renew trade regulation rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

VRPorn.com Releases 2025 'Annual Report'

VRPorn.com has released its Annual Report, highlighting its audience favorites from throughout 2025.

MrPornGeek Launches 'Visibility Boost' System

MrPornGeek has launched a new visibility boost system.

New Federal Bills Aim to Repeal Section 230

Members of Congress this week introduced two bills calling for the repeal of Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

RM11 Joins Pineapple Support as Supporter-Level Sponsor

RM11 has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Mark Spiegler Named XBIZ Talk Guest for 2026 LA Conference

XBIZ is pleased to announce that famed talent agent Mark Spiegler, impresario of the Spiegler Girls agency, will join an exclusive talk session at XBIZ 2026, the latest edition of North America’s largest adult industry conference, set to take place Jan. 12-15 at the Kimpton Everly Hotel in Hollywood.

Gataca Introduces Passkey Integration

Spain-based age verification provider Gataca has debuted its new passkey integration.

GloryPay Announces New Financial App

European fintech company GloryPay has announced the launch of its financial app for industry members.

Creator of Hentaied, Parasited Launches New Site 'MonsterPorn'

Romero Mr. Alien, the creator of Parasited and Hentaied, has launched new paysite MonsterPorn.com.

House of Lords Approves UK Plan to Outlaw 'Choking' Content

The House of Lords, the U.K.’s upper house of Parliament, has agreed to amendments to the pending Crime and Policing Bill that would make depicting “choking” in pornography illegal and designate it a “priority offense” under the Online Safety Act.

Show More