FTC settles CAN-SPAM dispute

Share this content:

Spear Systems Inc. and its officers Bruce Parker and Lisa Kimsey have settled a case brought against them by the Federal Trade Commission, which claimed that the defendants sent unsolicited e-mail for weight loss supplements.

The Commission voted to accept the settlements for the case, which was filed in the US District Court for the Northern District of Illinois, by a 4-0 vote.

The settlement requires a $29,000 fine and bars the defendants from making false or unsubstantiated claims about health benefits of any food, drug or dietary supplements, and bars them from violating the CAN-SPAM Act.

The FTC brought charges against the defendants in the United States, Canada and Australia in October 2007.

According to the FTC complaint, the defendants falsely claimed that their hoodia products cause rapid, substantial and permanent weight loss.

In addition, the FTC alleged that the operation violated the CAN-SPAM Act by initiating commercial e-mails that contained false "from" addresses and deceptive subject lines, and failed to provide an opt-out link or physical postal address.

The FTC asked the court to order a halt to the illegal operations, pending trial.

Litigation continues with another defendant named in the October 2007 complaint, Xavier Ratelle, a Canadian national based in Quebec.

Loading links....

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here