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Arkansas Consumer Protection News
Florida-Based Spammer To Pay $25k And Ordered To Stop Sending Deceptive E-Mail, Ag Reilly Announced Today
Settlement Resolves First State Action under CAN-SPAM Act
BOSTON - A Florida-based company accused of sending thousands of unsolicited electronic messages -- commonly referred to as “spam” -- in violation of state and federal law, must pay $25,000 and put an end to the practice, Attorney General Tom Reilly announced today.
The settlement, filed in Suffolk Superior Court, resolves allegations that DC Enterprises, an unincorporated business, and its company principal, William C. Carson of Weston, Florida sent thousands of commercial e-mails from a business address in Newton, where the company had no physical presence. These allegations, outlined in a June 2004 lawsuit filed by AG Reilly, violate the Massachusetts Consumer Protection Act and the new federal CAN-SPAM Act.
“Internet marketers should note that Massachusetts takes seriously federal and state laws meant to protect against unwanted and misleading e-mails,” AG Reilly said. “These messages are the type of unwanted and annoying solicitations that have become the scourge of Internet users and threaten the credibility of companies using email for legitimate purposes.”
AG Reilly’s June lawsuit was the first enforcement action taken by a state under the federal CAN-SPAM Act, which went into effect on January 1. The settlement with DC Enterprises resolves allegations that the company failed to include an opt-out provision, which allows consumers to decline future e-mails; failed to clearly identify messages as advertisements; and used a non-functioning sender address when disseminating messages, all of which violate the federal law that protects against unwanted spam and the Massachusetts Consumer Protection Act.
The spam allegedly sent by DC Enterprises touted low interest mortgage loans for anyone, even consumers with bad credit and included a link to a loan application that required applicants to provide personal and financial information. When consumers clicked on the “opt-out” button at the bottom of the application, the function failed to work. Consumers who attempted to reply directly to DC Enterprises by e-mail discovered that the company’s sender addresses were not valid. Those who sent postal letters to the addresses listed in their e-mails - DC Enterprises, Paragon Towers, 233 Needham Street, Suite 300, Newton, MA – received no response.
AG Reilly’s settlement also prohibits DC Enterprises, Carson, and anyone acting on their behalf from violating the federal CAN-SPAM Act, the Massachusetts Mortgage Broker Statute or the Massachusetts Advertising Regulations. These laws require mortgage brokers who advertise in Massachusetts to display their license numbers on all advertisements and their messages must contain a conspicuous notification to recipients that they are an advertisement or solicitation.
Assistant Attorney General Thuy Wagner of AG Reilly’s Consumer Protection and Antitrust Division handled this case with assistance from investigators Monique Cascarano and Todd Davis. AG Reilly’s Office also received assistance from Microsoft Corporation and the Federal Trade Commission.
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