Fergie's Tech Blog

FTC Settles With Advertiser For Spam Campaign

Grant Gross writes on InfoWorld:

An online advertiser that drove traffic to its Web sites by sending out spam with misleading subject lines has agreed to settle a U.S. Federal Trade Commission (FTC) complaint charging that it failed to tell consumers they had to spend money to receive so-called free products, the FTC announced Wednesday.

The settlement requires Member Source Media to disclose the costs and obligations associated with the advertised products and services, and bars the company from sending e-mail that violates the CAN-SPAM Act, which regulates the sending of unsolicited e-mail. The company must also pay $200,000 in civil penalties, according to the settlement approved Wednesday in the U.S. District Court for the Northern District of California.

Member Source Media -- doing business as ConsumerGain.com, PremiumPerks.com, FreeRetailRewards.com, and GreatAmericanGiveaways.com -- and the company’s owner, Chris Sommer, used deceptive spam and online advertising to lure customers to its Web sites, the FTC alleged.

posted by Fergie @ 1/30/2008 12:02:00 PM