The maker of Rascal Scooters agreed to pay $100,000 as a civil penalty to settle a complaint filed by the FTC alleging that Rascal Scooters violated the FTC Act and the FTC’s Telemarketing Sales Rule.
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Supreme Court of California Decision Upholds Promotional E-mail Sender’s Method of Avoiding E-mail Filters
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The Supreme Court of California held that Vonage did not violate California law by sending commercial e-mail advertisements to individuals from multiple domain names for the purpose of bypassing e-mail filters.
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Everybody Likes Free Stuff: Draft Privacy Legislation Seeks To Enhance Consumer Protections Without Disrupting Ad-Supported Internet Business Model
By Proskauer Rose on
A draft Congressional bill released Tuesday, May 3 aims enhance consumer privacy protections both online and offline and establish a national framework for the collection, use and security of consumer information, superseding state law requirements regarding the collection, use and disclosure of the information it covers. The draft legislation, sponsored by Congressmen Rick Boucher (D, Va.) and Cliff Stearns (R, Fla.), recognizes the importance of online advertising in supporting free online content and services and attempts to extend privacy protections without disruption of this business model.
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Maine Makes Marketing Minors “Predatory”
By Kristen J. Mathews on
In mid-September, Maine’s “Act to Prevent Predatory Marketing Practices against Minors” is scheduled to take effect. Due to the lack of a scienter element in several of the requirements of this new law, this Act could have far-reaching consequences for all businesses that engage in direct marketing or that sell or transfer personal information to third parties, even if the business does not have knowledge that the information regards a minor.
FTC Provides Last Clear Chance for Industry to Self-Police in a Target-Rich Environment
By Proskauer Rose on
On February 12, 2009, the FTC issued its long-anticipated Staff Report on Self-Regulatory Principles for Online Behavioral Advertising. The revised Self-Regulatory Principles are the result of a year of study of the more than 60 comments provided by industry, advocacy organizations, academics, and individual consumers in response to the FTC’s proposed self-regulatory principles issued in late 2007.
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New CAN-SPAM Rule Gives Long-Awaited Answers
By Kristen J. Mathews on
On May 12, 2008 the Federal Trade Commission issued its long awaited final set of rules under the CAN-SPAM Act of 2003 (the “Act”). The rule:
- Modifies the term “sender” with respect to multi-advertiser e-mails;
- Clarifies the opt-out request process;
- Defines the term “person”; and
- Clarifies the meaning of “valid physical postal address” of the sender.
- The accompanying report:
- Explains the FTC’s interpretation of the Act’s application to affiliate marketing programs and tell-a-friend campaigns.
The rule will take effect on July 7, 2008.