FTC Levies Fine Against Big-league Spammers

An anonymous reader writes "The FTC said it has closed down a spam operation in California that sent millions of unwanted messages to online users across the country and fined the companies involved about $2.4 million. The settlement doesn't shut down the businesses and, based on the financial records of the defendants, the judgment will be suspended upon payment of $475,000."

Comments

Misleading as hell

[RedOregon]

Surprise... government agency grabs headline, then contradicts itself.

From TFA headline:

The U.S. Federal Trade Comission said it has closed down a spam operation in California

Then in the third paragraph:

The settlement doesn't shut down the businesses

So they shut down the "spam operation" but didn't shut down "the business".

Fat lot of good that will do.

Re:Only shuts down the business, not the people

[Theatetus]

Spam is hugely profitable, because your overhead is nil.

*shrug* I'm not sure how true that is. I used to work for a pretty big, just-barely-legal, bulk email farm. The overhead can actually be pretty high, since you have to keep several networks ready in case too many spam complaints get your upstream to shut you down (and keep in mind, these were mailings that the people did actually request and confirm to receive and had our physical address and phone number in every footer -- I can't imagine how many more complaints the really illegal shit must get). Unless you can talk your provider into making you the abuse contact for your block (at which point the stakes get really high, because you can go to jail if you start screwing around then), you have to move about once every six months.

We basically had two kinds of clients: people who essentially wanted a cheaper Lyris for their mailing list (things like music groups sending out their tour announcements, churches sending out their activities announcements, demagogic political blowhards sending out their vitriolic screeds, etc.), and people who were hawking products (everything from frozen crabcakes to cool little mouse-cord-holder-stands -- I still have one of those -- to "Get Free Money From the Government" books). The first kind of customer was pretty steady and almost never gave us spam complaints (we ended up giving them their own network). The second kind of customer not only generated a lot of spam complaints (and contractually had to pay us $100 for each one), but usually went broke after a few months. They got good receive and open rates, and even OK click-through, but people just didn't buy the shit.

I left the "industry" a while ago in a fit of conscience, but what I learned might be a bit sobering for those who suggest we attack the companies advertising via spam. If my experience is normal, that won't matter because they all go out of business anyways. There's money in bulk email for the companies sending out the email, and for their carriers (who get to charge more for pink contracts), but rarely if ever for the people selling stuff. It's just there's always some new jackass ready to take his place once a seller fails.