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FTC Cracking Down On Spam

Posted on: February 12th, 2013

email spamIn a recent report, the FTC reported it was cracking down on spam. Marketers are infamous for finding ways to reach out to consumers. Unfortunately that sometimes involves soliciting people that do not want solicitations.

Spam is something that has been a growing problem since the advent of the Internet. Despite an array of warnings and policies regarding spam, many marketers continue to spam consumers. Recently however, the FTC cracked down on marketers that were overwhelming consumers with not just thousands but millions of spam related messages, particularly those sent on their cell phones.

Cell Phone And Spam

Cell phones are a new channel for spam distribution for Internet marketers. Many marketers are collecting cell phone information as a requirement for people to log into new websites. In a recent litigation by the FTC, 29 marketing defendants were indicted for sending more than 180 million spamming messages to consumers.

These messages claimed that consumers would receive free items including gift cards to their favorite retailers. Some of the retailers included popular, well-known names like Walmart and Target. Consumers that fell victim to the spammer messages would have to reveal personal information to spammers, including in some cases sensitive medical data.

This information was in turn sold to outside parties for marketing and further solicitation. Such activities are illegal and prohibited by law. Consumers who clicked on the spam messages, after entering their information, would then be directed to other offers. Here they would have to sign up for several other offers, including subscriptions, where often their credit card information was required. These offers generated a number of complains to the FTC. This was the only way to acquire their free gift.

A number of charges were filed against the spammers. One of the defendants had already received charges in 2011 for sending spam messages. The FTC is looking to file spam restraining orders alleging the defendants in this case were operating using deceptive means to collect information from unsuspecting consumers.

The FTC also charges that the spammers were violating the Federal Trade Commission’s act by not telling consumers the truth about what they required to earn a free gift. Consumers had no idea they would have to spend money before they could claim their gifts. The defendants sending the spam messages were also paid depending on how many people signed up for offers.

Multiple marketing firms were involved in this spam event, and it is likely several will be prosecuted for breaking the law.


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