California Spammers To Pay $475,000

The Federal Trade Commission and state of California have agreed to settle a case against alleged leaders of a spam ring in that state for $475,000.

The deal prohibits the defendants--Optin Global Inc., Vision Media Limited Corp., Qing Kuang "Rick" Yang, and Peonie Pui Ting Chen--from violating spam laws in the future. The defendants also are required to police affiliates--and spell out specific steps they must take to prevent affiliates from spamming consumers in the future.

The FTC had alleged that the defendants sent millions of unsolicited e-mail messages for mortgages and loans that didn't comply with federal Can-Spam legislation because they contained false subject lines and didn't include opt-out information, among other information. The defendants did not admit wrongdoing as part of the settlement.

The agreement calls upon the defendants to obtain detailed information from any affiliates--including their names, addresses and telephone numbers, and copies of their drivers' licenses or other government-issued identification. Affiliates also must submit e-mails in advance for approval, and the addresses from which the campaigns will be sent.

Online advertising companies' ability to monitor affiliates has recently drawn the attention of consumer advocates. The Center for Democracy and Technology earlier this year filed a complaint against 180solutions with the FTC, alleging that 180solutions turns a blind eye to unlawful methods used by its affiliates.

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