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

Pornhub Awards Fiesta: A Night of Music, Dancing and Camaraderie

The eighth annual Pornhub Awards transformed Los Candiles Night Club in Glassell Park into a celebration of glamour, glitter, fashion and fame Wednesday night, as performers, creators and industry insiders toasted the year’s winners and danced late into the night while Diplo and Midnight Mary kept the party pulsing from behind the decks.

Ukrainian Parliament Rejects Porn Decriminalization Bill

The Verkhovna Rada, Ukraine’s parliament, on Thursday voted against passage of a bill that would have decriminalized the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

FSC Launches Pride Fundraising Drive

The Free Speech Coalition (FSC) has launched its Pride Fundraising Drive to support its efforts on behalf of the LGBTQ+ community.

Cultpix Debuts AI-Generated Vintage Adult Films at Cannes

At this year’s Cannes Film Festival, B-movie streaming service Cultpix debuted a collection of AI-generated short films drawn from erotic magazine photo spreads published 50 years ago.

Ofcom Fines Youngtek Solutions $800K for AV Noncompliance

U.K. media regulator Ofcom on Wednesday imposed fines totaling 600,000 pounds (more than $800,000) against adult site operator Youngtek Solutions for failing to implement age checks and respond to information requests as required for compliance with the Online Safety Act.

Pornhub Launches Lesbian Site 'Pornhub Sapphic'

Pornhub has launched Pornhub Sapphic, a site dedicated to female and non-binary content and creators.

Brazil Invites Public Input on AV Guidelines

Brazil’s National Data Protection Authority (ANPD) on Friday launched a public consultation on developing guidelines for age verification mechanisms under the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Paysite Confidential: Inside the Creator Economy's Shift Toward Ownership

For years, the adult industry’s creator economy has been defined by platforms — powerful engines of discovery, monetization and scale that reshaped how performers connect with their audiences.

Senator Urges DOJ to Crack Down on 'Obscenity,' Attacks OnlyFans

U.S. Senator Jim Banks of Indiana this week urged Acting Attorney General Todd Blanche to reestablish the Department of Justice’s defunct Obscenity Prosecution Task Force in a letter that targets OnlyFans while repeatedly conflating “obscenity” with legal adult content.

UN Experts Urge US, Canada to Prosecute Aylo, Others for 'Exploitation'

GENEVA – The United Nations Office of the High Commissioner for Human Rights (OHCHR) has issued a press release in which two U.N. special rapporteurs, cited as experts, accuse Aylo and other companies of complicity in sexual exploitation.

Show More