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 © 2026 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

2027 XMA 'Fan Favorite' Pre-Nominations Period Now Open

XMA event organizers have announced that the pre-nomination period for Fan Favorite categories for the January 2027 ceremony is now open.

California Legislature Passes Stricter UGC Rules for Adult Sites

A bill to impose tighter compliance standards for user-generated content (UGC) on adult websites has been approved by the California state legislature and now awaits the governor’s signature.

CollabGPS Rolls Out 'Verification Badge' Update

CollabGPS has launched a badge system for user verification.

X3 Amsterdam Imports Hollywood Glitz With Continental Style

A throng of fans from across Europe and around the globe descended on the Passenger Terminal building on Friday, eager to meet their favorite adult stars at the inaugural X3 Amsterdam fan expo.

California, Florida Reps File Latest Bill to Repeal Section 230

Two members of Congress on Thursday introduced new legislation to repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Admaze Introduces Flat-Rate Media Buying for Publishers, Advertisers

Adult ad network and agency Admaze has introduced a flat-rate media buying model for publishers and advertisers.

Centro Launches Lifetime Revenue Share Affiliate Program 'CentroPulse'

Centro has launched CentroPulse, its new lifetime revenue share affiliate program for performance marketers, adult traffic affiliates, established webmasters, and sub-affiliate network operators.

Fanstage Launches Telegram Sales Solution

Fanstage has launched its new platform, allowing creators to sell PPV content directly from their Telegram DMs.

Second Bill Proposed to Shield US Sites From 'Foreign Censorship'

For the second time in recent weeks, a Republican congressman has introduced legislation to bar U.S. courts from helping to enforce foreign laws restricting speech that would domestically be protected under the First Amendment, potentially including foreign age verification laws.

SextPanther Launches in EU, UK

SextPanther has expanded its territory to include the U.K. and E.U.

Show More