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Developments of Note

By Julian S. Millstein, Edward A. Pisacreta and Jeffrey D. Neuburger
June 01, 2004

CAN-SPAM Update

The U.S. Attorney for the Eastern District of Michigan, in cooperation with the Federal Trade Commission (FTC), instituted the first criminal action under the federal CAN-SPAM Act. U.S. v. Lin, et al., No. 04-80383 (E.D. Mich. complaint filed April 28, 2004). Four individual defendants were arrested and charged with violations of the act and other federal laws based on the falsification of e-mail header information in an e-mail marketing scheme that involved false representations concerning diet products. The defendants are also named in a civil suit the FTC filed under CAN-SPAM. FTC v. Phoenix Avatar et al., FTC File No. 042-3084, Civil Action No. 04C 2897 (N.D. Ill. complaint filed April 28, 2004). The court in the Phoenix Avatar case issued a preliminary injunction against the spamming and froze the defendants' assets.

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