Mar, 2006 : Jumpstart Slapped With Largest Spam Penalty

📅 March 27, 2006 - Jumpstart Technologies has agreed in a consent decree to pay a $900,000 civil penalty for violating the Controlling the Assault of Non-Solicited Pornography and Marketing Act, in the largest penalty yet for illegal spam. The Federal Trade Commission says it is increasing fines for Internet marketers--adult and mainstream--now that the Can-Spam Act has been in effect for several years.

The FTC says that it is charging companies that violate Can-Spam with aggressive fines. Jumpstart was fined for its FreeFlixTix promotion, which provided direct marketing opportunities to online advertising partners by collecting marketing data to sell to third parties.

The San Francisco-based Jumpstart, owned by Greg Tseng, operates numerous companies, including Bonus Bonez, Harding Innovations, Infinity Brands and Launchpad Services, as well as such sites as CrushLink.com and SomeoneLikesYou.com.

The FTC alleged that Jumpstart offered free movie tickets to email recipients in exchange for the names and email addresses of five or more of their friends. It then sent them commercial emails with the consumer's email address in the "from" line and personal "subject lines" like "Hey," "Happy Valentine's Day," "Happy New Year," "Movie time. Let's go," or "Invite."

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