Slashdot Mirror


FTC Settles With Texas Based Spammer

fermion writes "The FTC has settled with the Austin, Texas-based company, ClickForMail.Com, Inc, on a charge of deceptive trade practices. The FTC charges that ClickForMail promised a preapproved credit card through AllPreApproved.com but failed to deliver the product. We all have heard that such spam and schemes can be very profitable, but do we ever believe a large number of people will fall for it? In this case, thousands took the bait. The victims allowed AllPreApproved.com to deduct $49.95 from their bank accounts. In return the victims received not a credit card, but a list of hyperlinks which could be used to get credit cards." (Read on for more.) "As is usual, the settlement does not assign blame. The FTC made ClickForMail pay $815,000 and promise not to lie about its services in the future. Apparently ClickForMail is not prohibited from sending out future UCE. This investigation is part of an FTC task force which is filing actions against 45 companies. One of the scams is an update of the eternal scholarship con.

If anyone gets spam from Texas, or if you live in Texas, make sure to use the new Texas Spam Law. Individuals can sue for $10 per UCE, up to $25,000 a day."

18 comments

  1. ok, but what I want to know is... by Anonymous Coward · · Score: 0

    did this case stem from the 11th Circuit? I predicted yesterday a /.-approved decision would come from the 11th circuit, and while this wasn't a court decision, it's good to see the FTC take action on something like this. I'm curious to see if the FTC originaly filed the case in 11th Circuit courts.

  2. Another light settlement by Anonymous Coward · · Score: 1, Interesting

    They can't lie again? It wasn't legal before. Why is that even in the settlement? Did they return the money to those they defrauded? What's the FTC trying to accomplish here? Is this too many questions in a row?

  3. nice by doofusclam · · Score: 2, Insightful

    So as they've been essentially let off the hook, what's to stop them doing it again under a different name? And does the fine cover the revenue they fraudulently took from people?

    1. Re:nice by herrvinny · · Score: 1

      815,000 divided by $49.95 is more than 16,000, so yes, the fine probably does cover the revenue from the scheme.

  4. I have trouble caring by tiled_rainbows · · Score: 2, Insightful

    I know that spamming is wrong, and fraud is wrong, and spamming + fraud is therefore doubly wrong, but in cases like this, as with the Nigerian money-laundering scams, I find it very difficult to sympathise with the victims of such a blatant scam. I know I should, but there's a cruel part of me that sees this as stupid people being taught a painful but valuable lesson.

    1. Re:I have trouble caring by irc.goatse.cx+troll · · Score: 1

      "I know that spamming is wrong, and fraud is wrong, and spamming + fraud is therefore doubly wrong,"

      Nope. Two wrongs make a right. Didn't you get the memo?

      --
      Pain lasts, kid. Its how you know you're alive. Sometimes I think this growing up thing is just pain management-TheMaxx
    2. Re:I have trouble caring by Anonymous Coward · · Score: 0

      nah. the memo i got said two wrong dont make a right. the memo went on to say that three lefts, otoh, make a right.

    3. Re:I have trouble caring by JuggleGeek · · Score: 1
      I don't sympathize with the victims at all - they were idiots, they lost 49.95 each, and they'll probably send more money to another spammer before long.

      Even so, the scammer should be punished, hard. I'm not convinced this is hard enough.

  5. Would it be wrong... by Anonymous Coward · · Score: 0

    I work down the hall from these guys, would it be wrong to post this article on their front door? Or how about a flaming bag of poo in front of it?

  6. He faces a $ 3.6 million fine! by spineboy · · Score: 3, Interesting

    This is IF the jury finds him guilty as accused. I imagine the defense lawyer will want a jury who has never touched a computer, so that he doesnt wind up with 12 spam angered jurors, who throw the book at his client.

    How about as a suggestion for posting guidelines. Most of the initial replies I have seen so far on this article indicated that they didn't read the article. Can you make a link counter, or cookie system that automatically mods down the posters score by 1 point if they haven't read at least one of the links? I know there could be problems with this, but it'll help reduce the chaff, and improve the S/N ratio. Just a thought

    --
    ..........FULL STOP.
    1. Re:He faces a $ 3.6 million fine! by Anonymous Coward · · Score: 0
      How about as a suggestion for posting guidelines.

      Considering that 2/3 of your post if off topic, I suggest you start looking at yourself.

    2. Re:He faces a $ 3.6 million fine! by scrytch · · Score: 1

      > I know there could be problems with this, but it'll help reduce the chaff, and improve the S/N ratio. Just a thought

      Actually, it would likely have the opposite effect of what you intended -- people who already read the article before it was posted to slashdot, or otherwise already understand the issue in depth would be penalized for not clicking through, resulting in more noise.

      You could force people to take a quiz, which might even be appropriate for an academic forum with a panel of people whose time you don't to waste... but not for a blog like slashdot.

      --
      I've finally had it: until slashdot gets article moderation, I am not coming back.
  7. No prison time? by Unsolicited+Commando · · Score: 1

    Hmmm... he lied to customers, gleefully took their money, and wasted communication resources. I know many states like Texas have fines in place. Even here in California on Jan 1st 2004 fines will be $1000 per UCE, but no matter how much the fines are as long as there is no jail time the fines will just become part of their business plan.

    --

    Get revenge: Unsolicited Commando

    1. Re:No prison time? by Anonymous Coward · · Score: 0
      Sec. 46.005. CRIMINAL PENALTY. A person commits an offense if the person intentionally takes any action to send a message containing obscene material or material depicting sexual conduct in violation of Section 46.003(a)(1). An offense under this section is a Class B misdemeanor.

      This means that if spam is not labeled as obscene, it will put in jail.

      This comes from the an interesting paradox in the bible belt. You can basically do anything you like, such as drink, smoke, participate in wild orgies, kill people, as long as you don't let the kids know or talk about too much in church. This is why so many people meet up in a bar, get drunk, have sex, spend the night together, wake up, have sex, smoke a pack of cigarettes, and then go to one of the mega churches and pretend that they just happened to meet in the parking lot that morning.

    2. Re:No prison time? by Steve+B · · Score: 1
      I know many states like Texas have fines in place.

      Darn -- I'd just sort of assuming that somebody caught spamming in Texas would get the death penalty....

      --
      /. If the government wants us to respect the law, it should set a better example.
  8. How convenient. by dacarr · · Score: 1

    They slap him with a fine and don't tell him to not send spam. I'm worried this is going to set a precedent.

    --
    This sig no verb.
    1. Re:How convenient. by Kindaian · · Score: 1

      How could they sue him again and get more fines if they would proibit him to do it again? ;)