In a collaborative effort between the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC), a permanent injunction and civil penalty have been issued due to violations of the Controlling the Assault of Non-Solicited Pornography And Marketing (CAN-SPAM) Act, the CAN-SPAM Rule, and the FTC Act. The implicated party is a company offering credit information, analytical tools and marketing services.
The governmental bodies declared on August 22 that a penalty of $650,000 will be enforced against the company. This decision comes as a response to alleged breaches of the aforementioned laws and regulations, which are set in place to protect consumers, businesses, and their privacy from unsolicited emails and potentially deceptive messages.
Both the FTC and the DOJ have been dedicating significant resources towards enforcing these regulations and are committed to ensuring that all companies, regardless of their size and sector, strictly abide by every rule.
While the FTC Act aims to protect consumers from anticompetitive, deceptive, and unfair business practices, the CAN-SPAM Act provides standards for sending commercial emails, prohibiting false or misleading header information and requiring email recipients to have an opt-out mechanism.
The involved company, in particular, has infringed upon these regulations and thus is faced with a severe penalty for their actions. More information about the injunction and penalty can be found in the detailed summary by Orrick, Herrington & Sutcliffe LLP here.
This case serves as a staunch reminder to all corporations and law firms of the serious consequences tied to violating legislations protecting consumers and promoting fair business practices. The incessant commitment of entities like the FTC and DOJ in enforcing these laws indicates the high level of scrutiny under which businesses operate today.