Do not pass Go, do not collect $200

Optin Global has had their bank accounts frozen while the FTC investigates whether or not their past profits have come from illegal activities. Specifically sending spam which used deceptive practices to increase click-through rates (false content, such as claiming that the person already signed-up for a mortgage through them).

Spam Kings notes that the people involved are even considered shady in the already sleazy world of spammers - other spammers don't even like these guys. That's pretty low.

This is exactly what I would like to see more of - actual freezing of the accounts since that prevents profits from being made by these guys, and without any incentive to make money, they won't spam. Of course unless they are using PayPal (unless something has changed recently and I missed it, PayPal doesn't legally have to behave in the same way as a bank since it isn't registered as that sort of entity, and therefore can do things a bank can't - like arbitrarily freeze your account while it investigates how you are making your money), it is a non-trivial task to just go in and freeze an entity's account - and that is a very good thing in many ways.
But in the case of spammers, there is usually a massive trail which points to them doing illegal activities and that can be used in the process. From what we have been seeing in the press though, much like in the drug war - they are going after the big guys as their priority (and again, for good reason). Optin Global caused the FTC to get nearly 2 million complaints forwarded to them before action finally took place - maybe I'm intolerant, but I think a mere few hundred thousand may have been enough in my mind to merit investigation. (I am aware that they are going to go after those who are the most prolific, and I am aware that due to the slow nature of our courts this all takes time)

Posted by Eric at April 14, 2005 09:26 AM | TrackBack