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International Spam Network Shut Down by FTC
Written by Jamie Simpson, LawServer Attorney-Editor   
Last Updated October 16, 2008

Complaints filed against what may be the largest international spam network for violating the CAN-SPAM Act of 2003 have prompted a U.S. district court to freeze the company's assets and issue a temporary injunction, writes the Federal Trade Commission (FTC). The defendants, Lance Atkinson of Australia and Jody Smith of Texas, operate four companies that illegally market prescription drugs, weight-loss and male enhancement pills. These drugs were sold through an online pharmacy known as "Target Pharmacy" and "Canadian Healthcare". Investigations began after the FTC received over 3 million complaints about the companies using false header information to disguise the origin of emails, failing to provide opt-out links to recipients, and neglecting to list a physical postal address. The FTC investigators also discovered that no Security Socket Layer (SSL) technology was used as claimed by the companies for credit card transactions.

New Zealand is also currently taking legal action against the defendants. In 2005, Atkinson was handed a $2.2 million judgement for running a similar spam operation selling herbal pills.

 
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