e360 sues a vendor

As if suing themselves out of business by going after Comcast and Spamhaus weren’t enough, e360 is now suing Choicepoint for breach of contract and CAN SPAM violations. As usual, Mickey has all the documents (complaint and answer) up at SpamSuite.
This may actually be an interesting case. On the surface it is a contractual dispute. Choicepoint sold e360 40,000,000 data records containing contact information including email addresses, snail mail addresses and phone numbers. Some of the records were marked “I” meaning they could be used for email. Some of the records were marked “O” meaning they could not be used for email.
Despite these terms being reasonably well defined in the contract, e360 sent email to addresses in records marked “O.” Some of those addresses resulted in e360 being sued by recipients. During the course of the suit, e360 contacted Choicepoint and asked for indemnification. Choicepoint refused for a number of reasons, including the fact that Choicepoint told e360 the addresses were not for mailing. In response, e360 filed suit.
The interesting and relevant part of this case is the CAN SPAM violation that e360 alleges.

9. In her September 10, 2008, letter, Ms. Meredith Sidewater on behalf of ChoicePoint declined to indemnify e360 for the expenses and damages incurred by e360 in the three (3) disputes. See Letter attached hereto as Exhibit B. She claimed four (4) of the six (6) emails at issue in the disputes were “Optin Status of O,” which she contended means that the records were approved only for direct mail and not email.
10. If Ms. Sidewater’s assertion is true, this assertion constitutes an admission of violation of the CAN-SPAM Act of 2003, which provides that if a recipient requests not to receive commercial email, then it is unlawful for the sender to release, sell, or transfer such person’s email address to a third party. Thus, ChoicePoint admits that it breached ¶ 12(a)(ii) of the Agreement. But for this breach, e360 would not have sent any emails to the complainants and would not have been sued.

CAN SPAM does indeed state that once someone has opted out from email that the address cannot be sold, transferred, leased for any purpose. If e360 prevails in this case it will have far reaching implications for a lot of senders and data brokers. I’ll be watching this one closely.

Related Posts

Fingerpointing all around

Mickey has copies of affidavits filed by David Linhardt and his lawyers all denying they were responsible for missing the court’s deadline.

Read More

News snapshot

  • The judge in e360 v. Spamhaus has denied Spamhaus’ motion for dismissal. However, the judge also ordered that the 16 new witnesses be stricken and capped damages at the original $11.7M. Mickey has the order.
  • Tuesday the FTC announced it had shut down a major spamming operation. I am not sure the results are visible yet, yesterday there were 2041 spams in one of my mailboxes yesterday versus 2635 a week ago.
  • The FBI announced today it had infiltrated and shut down a international carding ring. While not directly spam related the phishers and carders work together and some of them use spam.
  • Rumor has it that many mailers are seeing problems delivering to AOL the last few days. It seems that AOL is making adjustments to their filtering system. As when any ISP changes filter rules and weights, some of the people just skirting by see delivery problems. What people are hearing is that if they are seeing delivery problems at AOL they need to improve their reputation.
  • Last week Yahoo had another online workshop with the mail folks. They have published a transcript of the talk. I was at the talk and there were only a couple spam related questions.

donhburger: Why does Yahoo sell our email addresses to spammers?
YMailRyan: We absolutely don’t sell your addresses to spammers. No IFs, ANDs, or BUTs about it.
imintrouble: My mom keeps emailing em but I never get it and usually it ends up in my spam box. Why? How do I make this stop? She’s getting pissed that I’m not replying.
YMailTeam: Oh no! Be sure your Mom is on your contact list– this should help keep mom out of spam box and put her back into your inbox.
buergej: Just why do I keep receiving the same kind of spam from a series of what appear to be women day after day after day?
YMailCarl: Spam is, unfortunately a constant problem for anyone using email. The reason you are receiving these emails is because spammers have somehow gotten a hold of your email address and are mailing you their lovely messages. There are several things you can do to assist with this. First, continue to report these messages as “Spam” by clicking the button at the top of the email labled “Spam”. Note that you don’t need to actually look at the message to do this. When you report items as spam it lets Yahoo! know that messages originating from that person are likely spam. This not only helps you, but helps other Yahoo! users as well.
YMailCarl: Second, if the emails are from similar names, you can set up filters in your email account to block those names and send them to your trash or spam folder.
YMailCarl: Obviously these messages you are receiving are not from women trying to sell you products personally – the messages are typically generated by a script which will try to forge or “spoof” the originating address.
YMailCarl: We agree that Spam is a serious issue and have many resources dedicated to fighting this problem.
YMailCarl: You can find some additional information about fighting spam here: http://help.yahoo.com/l/us/yahoo/mail/original/abuse/index.html
donhburger: Why when I mark Emails as Spam do I continue to get emils from the same persons?
YMailMaryn: When you mark a message as “spam” from within your Inbox that moves the message to your Spam Folder. And all subsequent messages that are sent from that particular sender will not be delivered to your Inbox, but will be delivered to your Spam Folder.

Read More

Data Integrity, part 2

Yesterday I blogged about eROIs contention that consumers should not be wasting the time of lead gen companies by filling in fake data. There were lots of good comments on the post, and I strongly encourage you to go read them if you are interested in different perspectives on the data issue.
One of the arguments I was making is that people are only going to give accurate information if they trust the website that is collecting information. I do, strongly, believe this. I also believe very strongly that websites collecting information need to do so defensively. It is the only way you can get good information.
This ties in with an earlier post about a website that collects email addresses from any visitor, then turns around and submits those addresses to webforms. Hundreds of mailing lists have already been corrupted by this group. They are a prime reason companies must design address collection process defensively. There are people who do bad things, who will take an opportunity to harass senders and recipients. This company is not the first, nor will they be the last to commit such abuses.
Taking a stand against abusive companies and people may be useful, but that will not stop the abuse. It is much easier to design process that limits the amount of abuse. For lead gen, in particular, confirmed opt-in is one way to limit the amount of bad data collected. As a side effect, it also results in less blocked mail, fewer complaints and better delivery.

Read More