Spam judgment not covered by insurance

Earlier this month a judge ruled that two insurance policies held by Scott Richter’s Media Breakaway were not liable to pay $6M in damages awarded in a previous case.
Myspace initially sued Media Breakaway in 2007 for allegedly using phished Myspace accounts to send emails advertising Media Breakaway websites. In summer 2008 and arbiter ruled in favor of Myspace and against Media Breakaway. After the ruling, Media Breakaway attempted to have insurance cover the fine. The insurance company denied the claims so Media Breakaway took them to court. Media Breakaway lost.
Scott has been around in the email marketing arena for a very long time. He’s had multiple run ins with the law, including a 2003 felony theft charge for stealing a number of things, including a Bobcat loader and a 2004 suit brought against him by the NY Attorney General’s office and Microsoft for spamming and deceptive advertising. That court case bankrupted his previous company, OptInRealBig. Scott has also appeared on the Daily Show, in a side-splittingly funny story about spam and email marketing…. er… high volume email deploying.

The Daily Show With Jon StewartMon – Thurs 11p / 10c
Email Trouble
www.thedailyshow.com
Daily Show
Full Episodes
Political HumorJoke of the Day

Have a great weekend all. It looks like I’m going to get the blog carnival post out Wednesday or Thursday next week so if you have a late entry feel free to drop it to me before then.
HT: Venkat

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Organizing the mail flow

I get a lot of email. On a typical day I will get close to 2000 messages across my various work and personal accounts. About 60 – 70% of that mail is spam and caught by spamassassin or my mta filters and moved into mailboxes that I check once a day for false positives. About 15 – 10% of the remaining mail is from various discussion lists, and those are all sorted into their own mailboxes so I can keep conversations straight. The rest of the email is divided between mail directly to me and various commercial lists I have opted in to.
Up until recently, the commercial mail was all just dumped into my inbox. Nothing special happened to it it just sat there until I could read it. Recently, however, the volume of commercial mail has exploded, swamping my inbox. After losing track of some critical issues, I sat down and fixed my mail filters. Now, all my commercial and marketing mail (ie, mail I signed up for with tagged addresses) is now being filtered into its own mailbox.
There are two takeaways here.
One: the volume of commercial mail has increased significantly. Companies who were previously mailing me once a month are now mailing me twice a week. This contributed to the clutter and resulted in me pushing all commercial mail out of my inbox. I don’t think this increase is limited to just my mailbox, I believe many recipients are seeing an increase in commercial and marketing email, to the point where they’re finding it difficult to keep up with it all.
Two: Recipients have a threshold over which too much email makes their mailbox less usable. Once this threshold is reached they will take steps to change that. In my case, I can just filter all the commercial email as I use tagged addresses for all my signups. In other cases, they may start unsubscribing from all the mail cluttering their mailbox or blocking senders.
It is the tragedy of the commons demonstrated on a small scale.

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12% of email recipients respond to spam

Twitter and some of the other delivery blogs are all abuzz today talking about the consumer survey released by MAAWG (pdf link, large file) looking at end user knowledge and awareness of email security practices.
The survey has a lot of good data and I strongly encourage people to look at the full report. There are a couple of results that are generating most of the buzz, including the fact that nearly half of the respondents have clicked on a link or replied to a spam email. Additionally, 17% of respondents said they made a mistake when they clicked on the link.
The magic statistic, though, is that 12% of the respondents said that they responded to spam because they were interested in the products or services offered in the spam. This, right there, is one of the major reasons why spam continues and is a growing problem. Out of 800 people surveyed, almost 100 of them were interested enough in the products sold by spam to respond positively. There are roughly 1.6 billion people on the Internet, which gives spammers a market of 200 million people for their spam.
Other studies have seen similar responses, that is consumers do respond to spam. Most surveys don’t define spam, however, and given a lot of consumers call “mail I don’t like” or “all commercial email” as spam it’s hard to know what the respondents are responding too. In some studies, some respondents even defined mail from companies that they had given their email address to, but had not explicitly asked for email from as spam.  In this study MAAWG did request how the respondent defined spam. Of the respondents, 60% say spam is mail they did not solicit, and 41% say spam is mail that ends up in the spam folder. Given that 60% of respondents define spam as “unsolicited email” it is possible that some people are responding to mail they never requested.
Sad news for those of us who were hoping that lack of consumer response would make spamming unprofitable enough that spammers would stop.
The crosstab between “how do you define spam” and “how do you react to spam” may be an interesting data set to see.

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