Email Marketing Attorneys and the FTC Clash Over and Settle Spam Claims

Print Friendly, PDF & Email

March 22, 2017

email-marketing-attorneyLast week, email marketing lawyers and the Federal Trade Commission (“FTC”) announced a $500,000.00 settlement between the agency and a company offering weight-loss products which were allegedly marketed via email in violation of federal law.  The FTC alleged that the defendant corporations (all related) and their respective principal “paid affiliate marketers to send consumers millions of illegal spam emails from hacked email accounts, making it appear that the messages came from the consumers’ family members, friends, or other contacts.”  The email messages contained links to the Defendants’ website.  According to the FTC, the website contained deceptive representations regarding product efficacy and false celebrity endorsements.

In December 2016, the defendants’ email marketing lawyer began negotiating a settlement with the FTC.  On March 3, 2017, the Court accepted the parties’ proposed settlement.

What are the Terms of the FTC’s Anti-SPAM Settlement Agreement?

The parties agreed to a $1,303,822.98 settlement.  However, all but $500,000.00 has been suspended due to the represented financial condition of the defendants.  In addition, the defendants have agreed to monitor all email marketing affiliates to ensure that no further SPAM violations occur.  The defendants are also prohibited from making any false or misleading claims about either their products or any celebrities who may endorse their products in the future.

Protect Yourself: Consult with an Email Marketing Attorney Today

Email marketing attorneys counsel their clients to not only comply with federal anti-SPAM laws, but state anti-SPAM laws as well which, in some instances, may be more stringent.  To avoid ending up in the crosshairs of the FTC, or that of a private litigant for that matter, it is important to consult with competent email marketing attorneys prior to commencing any campaign.

If you are interested in learning more about this topic, please visit the Telemarketing Law practice area of our website.  If you have been served with process concerning your email marketing practices in general, please e-mail us at or call us at (212) 246-0900.

The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney.  Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.

Attorney Advertising

Similar blog posts:

Canadian Watchdog Renders First Ever CASL Spam-Related Fine Decision

Have You Been Sued by XMission?

FTC Targets Tech Support Companies for Deceptive Pop-Up Marketing

David O. Klein

David O. Klein

David Klein is one of the most recognized attorneys in the telemarketing, technology, Internet marketing, sweepstakes and telecommunications fields. Skilled at counseling clients on a broad range of technology-related matters, David Klein has substantial experience in negotiating and drafting complex licensing, marketing and Internet agreements.

Schedule a Call
In The Know

Trending Topics

New York Sweepstakes Law blog- Klein Moynihan Turco

New York Sweepstakes Law: Are You Compliant?

Print Friendly, PDF & Email

In general, a lottery exists when entrants pay for the chance to win a prize. States alone reserve the right to administer lotteries. Businesses can eliminate one element of what would otherwise be an illegal lottery, in order to transform it into a legal promotional game. If the requirement to

TCPA surveys

An Ad or not an Ad: NY Weighs in on TCPA Surveys

Print Friendly, PDF & Email

Another day, another court decision that refines constitutes a Telephone Consumer Protection Act (“TCPA”) unsolicited fax advertisement. A Manhattan-based federal court recently issued a decision that removes faxed invitations to participate in a survey from the TCPA definition of advertisement. In drawing this distinction for TCPA surveys, the Court held

NY sports gambling law- Klein Moynihan Turco

Agreement Reached to Enact NY Sports Gambling Law

Print Friendly, PDF & Email

This week, Governor Andrew Cuomo and the New York State Legislature agreed to a budget deal that will bring mobile sports betting to the State through a unique NY sports gambling law.  Upon the Governor’s signature, NY sports gambling is primed to become the nation’s largest market. However, New York

UK and US Social Media Influencer Laws

UK and US Social Media Influencer Laws

Print Friendly, PDF & Email

In September of 2020, the United Kingdom’s (“UK”) Committee of Advertising Practice (“CAP”) reviewed the Instagram accounts of 122 UK-based social media influencers to determine whether content was being properly flagged as advertising in accordance with applicable social media influencer laws. This past March, the UK Advertising Standards Authority (“ASA”)

Running a Telemarketing Business?

Get a Free Compliance Review From an Experienced TCPA Lawyer.

Share on facebook
Share on google
Share on twitter
Share on linkedin