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FTC Says CAN-SPAM is Working

Posted On 22 Dec 2005
By : admin

WASHINGTON, D.C. – During a press conference in Washington, D.C., the Federal Trade Commission released a report delivered to Congress last week in which the FTC states that “the Commission believes that the Act has been effective in achieving two desired outcomes.”According to the report, CAN-SPAM has “mandated adoption of a number of commercial email ‘best practices’ that many legitimate online marketers are now following,” and “the Act has provided law enforcement agencies and ISPs with an additional tool to use when bringing suit against spammers.”

The report does concede that advancements in spam filters and other anti-spam technologies make it difficult to assess how effective the law has been, but points to several statistical indicators to support the claim that spam is on the decline.

The FTC relied on data from email security firm MX Logic, as well as others, to show that the number of spam messages is at least leveling off, perhaps even declining. According to MX Logic, over the past year, an average of 68 percent of the messages it screened were considered spam, which is down from 77 percent last year.

MX Logic, also reported, however, that only 3% of the messages it screened last year and 4% this year actually met the standards proscribed by CAN-SPAM, including accurate subject lines, a postal address to send spam complaints and other correspondence to, the required opt-out link, and, where adult content related e-mail is concerned, the required “SEXUALLY EXPLICIT:” label in the subject line of messages.

“We would not make the statement today that spam has completely declined,” said MX Logic CTO Scott Chasin in an interview with CNet. “What we can say, and what we believe, is that spam has declined as far as reaching the consumer’s in-box. I think it’s a big difference from saying overall spam volumes are down.”

In the section of the report entitled “Protecting Consumers from Pornographic Email,” the FTC cites a Pew report from April of this year which stated that “the number of users who reported ever receiving pornographic spam had decreased from 71 percent to 63 percent over the previous year.” The Commission also quotes reporting from internet security company Clearswift, which stated that in July, pornographic email accounted for only 5% of the spam analyzed by the company that month, which the FTC said was “nearly one-fourth of the amount reported in 2003.”

The report specifies several specific prosecutions, including the action filed against Global Net Solutions, Inc. in January of 2005, and 7 new cases brought against operators of affiliate programs in July. According to the FTC’s report, settlements in 4 of those 7 cases resulted in over $1.1 million in civil penalties.

The report also trumpets the lasting effect of the settlements made with the companies in question, stating that “each settlement bars illegal email practices in the future and requires that the defendants closely monitor their affiliates to ensure they also do not violate CAN-SPAM or the ALR.” (Note: “ALR” stands for “Adult Labeling Rule”). According to the report, the FTC is seeking similar penalties and settlements in the 3 ongoing adult-related CAN-SPAM litigations.

The FTC also reported on Tuesday that the Commission is in the “early stages” of litigating cases against three more alleged spammers, and that the attorney generals of Florida, North Carolina and Texas have filed their own suits against another three spammers.

The Commission also renewed its plea for a law that would enhance its ability to share information with international law enforcement agencies, and increase the international impact of CAN-SPAM. The Senate Commerce Committee approved the proposal last week, but it is not clear when it will be considered by the full Senate.

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