1st Case to Use U.S. Safe Web Act Nets $3.7M in Fines to Spammers

NEW YORK — In the first case to use the U.S. Safe Web Act, a federal judge has ordered key players in an international spam operation to repay the $3.7 million earned from promoting two health mainstream products.

The four-year-old act, which targets international perpetrators of Internet fraud as well as spam and spyware distribution, allows for easier exchange of information among the FTC and its foreign counterparts.

The FTC said the spammers promised that an extract of the hoodia gordonii plant would result in weight loss, and that a human-growth hormone pill would reverse aging. The claims were unsubstantiated, the FTC said, and violated both the FTC law and the CAN-SPAM Act.

Regulators said the operation used spam emails to drive unknowing consumers to sites selling the products, violating federal laws on false advertising. They say the emails had fake return addresses and used deceptive subject lines.

The FTC also claimed that operators also failed to provide an opt-out link or a physical address in the email.

The FTC settled with three defendants — Spear Systems and two individuals, one in the U.S. and one in Australia — in May 2008, and the new court orders apply to HBE Inc., two corporate defendants and two Canadian residents.

Related:  

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 Unblocks Australia Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in Australia will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s Australian age-verification process.

California Governor Signs Bill Limiting CIPA Claims

Governor Gavin Newsom has signed into law a bill to narrow the scope of the California Invasion of Privacy Act (CIPA), to prevent abusive lawsuits targeting online businesses, including adult websites.

California Enacts Stricter UGC Rules for Adult Sites

Governor Gavin Newsom has signed into law a bill to impose tighter compliance standards for user-generated content (UGC) on adult websites accessible in California.

Minister: UK Aims to Begin Enforcing 'Choking' Ban Before Year's End

The U.K. will soon begin enforcement of a new law criminalizing depictions of “non-fatal strangulation” in adult content, according to a Ministry of Justice official.

XBIZ LA Conference Website Now Live, Registration Open

The event website for the XBIZ LA conference is now live, offering comprehensive information about the upcoming event, taking place Jan. 7-10 at the JW Marriott L.A. LIVE.

CrakRevenue Launches Mobile App for Real-Time Affiliate Alerts

CrakRevenue has launched Aff Companion, a mobile app that sends affiliates real-time notifications about clicks, conversions, and revenue.

Goddess Lilith Launches New Official Website Through PAYSITE

Goddess Lilith has rolled out her new official site, QueenGoddessLilith, through PAYSITE.

Pineapple Support to Host 'Reclaiming Intimacy' Support Group

Pineapple Support is hosting a free online support group for performers with trauma-impacted intimacy issues.

Ofcom Cites Web Prime, Porntrex for Alleged AV Violations

U.K. media regulator Ofcom on Tuesday notified two operators of adult websites of the agency’s provisional determination that the companies have failed to comply with provisions of the Online Safety Act.

FSC: Utah Excise Tax on Adult Content Goes Into Effect October 1

The Free Speech Coalition (FSC) has issued an advisory that the Utah Excise Tax goes into effect tomorrow.

Show More