ValueClick to Pay 2.9 Million for CAN-SPAM Violations

This just in… ValueClick will 2.9 million for CAN-SPAM violations by it’s Hi-Speed Media division, in which they used deceptive advertisements to draw people to their websites. The advertisements promised something for free, such as a free laptop, PS3’s, Plasma TV’s, etc, for completing surveys, or something similar, but when customers arrived, they had to jump through hoops and spend some of their own money, usually, to get the “FREE” stuff.

Online advertiser ValueClick Inc. will pay $2.9 million to settle charges that it made deceptive claims in e-mails and online ads, a government agency said Monday.

Westlake Village, Calif.-based ValueClick had said last month it would pay the fine to settle the matter, without admitting that it violated any laws. The company said in February that it took a $2.9 million charge against fourth-quarter earnings to account for the settlement.

The fine is the largest ever imposed for a violation of the federal CAN-SPAM Act, the Federal Trade Commission said. The act, approved by Congress in 2003, bars deceptive practices in e-mail advertising.

ValueClick’s Hi-Speed Media subsidiary violated the anti-spam act, the FTC alleged, by sending spam e-mail that offered consumers “free gifts” to lure consumers to ValueClick’s Web sites. Consumers then learned that they had to purchase satellite television subscriptions, obtain car loans or buy other expensive products or services in order to obtain the gifts, the FTC alleged. Source: ValueClick to pay $2.9M in spam case

The FTC said that ValueClick also did not protect it’s customers’ financial information and as part of the settlement, they will create an online security program and have third parties assess for 20 years.

“We have worked with the FTC and have reached an agreement on the standards and practices that will govern our lead generation business going forward,” David Yovanno, chief operating officer of ValueClick’s U.S. media, said in a statement. “We believe this settlement will also help set the guidelines for the lead generation industry as a whole, and we will continue to participate in the Interactive Advertising Bureau to help establish best practices to that end.” Source: ValueClick to pay $2.9 million to settle spam complaint

Jimmy Daniels

About Jimmy Daniels

A reluctant blogger, Windows XP guy, Nascar fan and long time affiliate marketer, Jimmy Daniels has been favoring his kids over everything else, as he should be.
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