Developments of Note

CAN-SPAM Update

The U.S. Attorney for the Eastern District of Michigan, in cooperation with the Federal Trade Commission (FTC), instituted the first criminal action under the federal CAN-SPAM Act. U.S. v. Lin, et al., No. 04-80383 (E.D. Mich. complaint filed April 28, 2004). Four individual defendants were arrested and charged with violations of the act and other federal laws based on the falsification of e-mail header information in an e-mail marketing scheme that involved false representations concerning diet products. The defendants are also named in a civil suit the FTC filed under CAN-SPAM. FTC v. Phoenix Avatar et al., FTC File No. 042-3084, Civil Action No. 04C 2897 (N.D. Ill. complaint filed April 28, 2004). The court in the Phoenix Avatar case issued a preliminary injunction against the spamming and froze the defendants' assets.

In other developments, the FTC announced on April 29 that it filed an action against an Australian company that the commission alleges is responsible for massive amounts of spam in the United States advertising products claimed to contain human growth hormone. FTC v. Global Web Promotions Pty Ltd., FTC File No. 042-3086, Civil Action No.: 04C 3022 (N.D. Ill. complaint filed April 28, 2004).

Also in April, the FTC issued regulations requiring sexually explicit commercial e-mail to include a subject line containing the words, “SEXUALLY-EXPLICIT: “. The regulations, which were to become effective May 19, were issued pursuant to the requirements of the CAN-SPAM Act. According to the commission, the proposed required mark includes a hyphen between the words, followed by a colon and a space, to distinguish the mark from ordinary messages containing the phrase making up the mark.

The text of the FTC rule regulating sexually explicit commercial e-mail is available at www.ftc.gov/os/2004/04/040413adultemailfinalrule.pdf.

CAN-SPAM Update

The U.S. Attorney for the Eastern District of Michigan, in cooperation with the Federal Trade Commission (FTC), instituted the first criminal action under the federal CAN-SPAM Act. U.S. v. Lin, et al., No. 04-80383 (E.D. Mich. complaint filed April 28, 2004). Four individual defendants were arrested and charged with violations of the act and other federal laws based on the falsification of e-mail header information in an e-mail marketing scheme that involved false representations concerning diet products. The defendants are also named in a civil suit the FTC filed under CAN-SPAM. FTC v. Phoenix Avatar et al., FTC File No. 042-3084, Civil Action No. 04C 2897 (N.D. Ill. complaint filed April 28, 2004). The court in the Phoenix Avatar case issued a preliminary injunction against the spamming and froze the defendants' assets.

In other developments, the FTC announced on April 29 that it filed an action against an Australian company that the commission alleges is responsible for massive amounts of spam in the United States advertising products claimed to contain human growth hormone. FTC v. Global Web Promotions Pty Ltd., FTC File No. 042-3086, Civil Action No.: 04C 3022 (N.D. Ill. complaint filed April 28, 2004).

Also in April, the FTC issued regulations requiring sexually explicit commercial e-mail to include a subject line containing the words, “SEXUALLY-EXPLICIT: “. The regulations, which were to become effective May 19, were issued pursuant to the requirements of the CAN-SPAM Act. According to the commission, the proposed required mark includes a hyphen between the words, followed by a colon and a space, to distinguish the mark from ordinary messages containing the phrase making up the mark.

The text of the FTC rule regulating sexually explicit commercial e-mail is available at www.ftc.gov/os/2004/04/040413adultemailfinalrule.pdf.