MySpace Wins $234 Million CAN-SPAM Case

LOS ANGELES — Social networking site MySpace has won a $234 million legal judgment under the CAN-SPAM law over junk messages sent to MySpace members after defendants Sanford Wallace and Walter Rines failed to show up in court.

The judgment is thought to be the largest ever made against senders of unsolicited commercial email.

"Anybody who's been thinking about engaging in spam are going to say 'Wow, I better not go there,'" Hemanshu Nigam, MySpace chief security officer, told the Associated Press. "Spammers don't want to be prosecuted. They are there to make money. It's our job to send a message to stop them."

The two junk mailers created MySpace accounts and took over existing ones by stealing passwords. Using these accounts, they emailed MySpace members fraudulently, making the mail look like it came from trusted friends. Typically, the email asked recipients to view a video or visit a website.

"When you go there, they were making money trying to sell you something, or making money based on hits or trying to sell ringtones," Nigam said.

MySpace said the duo sent 735,925 messages to its members.

In court papers, MySpace said that sending the junk mail cost the company money and generated complaints from hundreds of users. MySpace also claimed that some of the external websites contained pornographic material, potentially harming teenagers who use MySpace.

Under the 2003 CAN-SPAM law, each violation entitles MySpace to $100 in damages, which is tripled when spam is sent "willfully and knowingly."

MySpace sought $157.4 million from Wallace and Rines under CAN-SPAM, plus a further $63.4 million separately from Rines under the same law. MySpace sought another $3 million from the pair under a different section of CAN-SPAM, $1.5 million under California's anti-phishing laws and reimbursement for $4.7 million spent on legal fees.

U.S. District Judge Audrey B. Collins granted every one of MySpace's claims for damages. The judge also issued injunctions against Wallace and Rines, barring similar activities in the future.

John Levine of the antispam advocacy group Coalition Against Unsolicited Commercial Email told reporters he believes MySpace will have a tough job collecting the money.

"The giant judgments are all defaults, which means they don't necessarily even know how to find the spammer."

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Open Mind AI Seeks Inclusion in EU's AI Debate

New European industry initiative Open Mind AI has penned a letter asking EU authorities to include adult companies and creators in ongoing discussions on setting up a legal framework for AI content.

Canadian Law Professor: Proposed Age Verification Bill 'Will Make Things Worse'

Leading Canadian newspaper The Globe and Mail this week published an op-ed written by a legal scholar outlining fundamental issues with the Conservative-backed age verification bill currently making its way through Parliament.

UK Labour Government Confirms it Will Continue Baroness-Led 'Porn Review'

The U.K. Labour government of Prime Minister Keir Starmer has confirmed it will continue the controversial full review of British pornography laws ordered by former Tory Prime Minister Rishi Sunak in July 2023.

AEBN Publishes Popular Searches for July and August

AEBN has released the top search terms for the months of July and August from its straight and gay theaters in all 50 states and the District of Columbia.

SWR Data Survey Probes Concerns About Political Attacks on Industry

SWR Data, an adult-sector market research firm led by industry veterans Mike Stabile and MelRose Michaels, has released data from its upcoming 2024 State of the Creator report, illustrating creators’ concerns about political attacks on the industry.

FSC Urges SCOTUS to Strike Down 'Unconstitutional' Texas Age Verification Law

The Free Speech Coalition (FSC) urged the U.S. Supreme Court through a brief filed Monday to strike down Texas’ age verification law as unconstitutional.

Japanese Manga Industry Hit by Credit Card Companies' Anti-Porn Restrictions

Japanese manga retailers are reporting pressure from multinational credit card companies — many based in the U.S. and targeted by anti-porn religious conservatives — to censor their content if they wish to maintain their current payment processing arrangements.

Netherlands Government Continues Porn Probe Following Abuse Allegations

The Dutch government plans to continue investigating the local porn industry in the Netherlands, following a series of abuse allegations involving photographer and self-styled “model scout” Daniël van der W.

Clips4Sale Releases '20 Years of Fetish' Data Survey

Clips4Sale (C4S) has released a report based on 20 years of data and analysis to show how kink and fetish tastes have changed since the site began.

Grooby, Yanks Ink Website Management Deal

Grooby will begin managing Yanks.com under a new company, Blue.xxx.

Show More