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U.S. Targets Spam-Based Scams U.S. Targets Spam-Based Scams
By Tim McDonald
February 1, 2002 10:54AM

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The FTC will try to stop spammers who flood consumers with more junk e-mail after offering them the chance to 'opt out' of their e-mail lists.
 
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Notwithstanding the questionable efforts of private advocacy groups to alleviate the plague of unsolicited e-mail, the U.S. Federal Trade Commission (FTC) announced Thursday that it will launch its first "systematic attack" on con artists who attempt to dupe victims using unsolicited junk e-mail, known as spam.

The FTC said it will announce "law enforcement actions" within the next few weeks. The agency has in the past policed Web sites that made dubious claims, most recently those that falsely advertised cures or detection devices for biohazard agents.

But this is the first time the government agency has specifically targeted scams propagated through unsolicited e-mail.

'Little or No Work'

The FTC said consumers forward about 10,000 dubious e-mail offers to the agency for review each day.

"FTC staff found that, more often than not, bulk e-mail offers appeared to be fraudulent and, if pursued, could have ripped off unsuspecting customers to the tune of billions of dollars," the FTC said.

The most often used e-mail come-ons involve business opportunities that promise earnings of up to US$1,000 per day for little or no work. Many involve Internet-related businesses.

The FTC said a large number are "illegal pyramid schemes masquerading as legitimate opportunities to earn money."

'Effortless Income'

The second most often used scam offers to sell victims millions of e-mail addresses so they can start their own bulk e-mail business. The problem, according to the FTC, is that bulk e-mail solicitations violate the terms of service of most Internet service providers.

Chain letters are also popular. These offers may claim the scheme is legal and may even cite sections of U.S. law that appear to justify them. But the FTC said that "chain letters -- traditional or high-tech -- are almost always illegal, and nearly all the people who participate in them lose their money."

Other types of spam scams on the agency's "dirty dozen" list are work-at-home schemes, health and diet scams, "effortless" income, free goods, investment opportunities, cable descrambler kits, guaranteed loans or credit, credit repair and vacation prize promotions.

Opt-Out Hoaxes

The FTC said it also will pursue other types of privacy invasions, such as spammers who tell consumers they can unsubscribe from an e-mail list, then sell their addresses to other spammers when they try to do so.

Also, the FTC will try to stop spammers who flood consumers with more junk mail after offering them the chance to "opt out" of their e-mail lists.

FTC Cannot Fine

The FTC is a welcome entry into the anti-spam movement, since legislation has been slow in coming. Eighteen states have passed laws directed at spammers, including California, which has a law that allows users to sue spammers.

But attempts to pass laws at the national level have stalled, mainly because of the lobbying efforts of direct marketers.

The Commission said it will use existing laws that ban false or deceptive trade practices in its anti-spam initiative. In most cases, the FTC does not have the authority to impose fines. However, the agency can force the guilty party to return money falsely earned.

On Thursday, the FTC settled charges with a person involved in a pyramid scheme that posed as a multilevel marketing business.

The agency compelled Robert Waitkus, who worked for a company that advertised dietary supplements and healthcare products online, to return the $30,000 he made from the scheme.
 

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