Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_08-cv-00642/USCOURTS-cand-3_08-cv-00642-0/pdf.json

Parties Involved:
ConsumerGain.com
Defendant
FreeRetailRewards.com
Defendant
GreatAmericanGiveaways.com
Defendant
Member Source Media LLC
Defendant
PremiumPerks.com
Defendant
Chris Sommer
Defendant
United States of America
Plaintiff

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Stip. Final Judgment

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JEFFREY S. BUCHOLTZ

Acting Assistant Attorney General

EUGENE M. THIROLF

Director, 

KENNETH L. JOST

Deputy Director,

Office of Consumer Litigation

JOHN W. BURKE (VA. BAR NO. 72780)

Trial Attorney, Office of Consumer Litigation

Civil Division

United States Department of Justice

P.O. Box 386

Washington, D.C. 20044

Telephone: 202-353-2001

Facsimile: 202-514-8742

Email: josh.burke@usdoj.gov

Attorneys for Plaintiff United States of America

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, 

 Plaintiff,

 v.

Member Source Media LLC, doing

business as ConsumerGain.com,

PremiumPerks.com,

FreeRetailRewards.com, and

GreatAmericanGiveaways.com, 

and

Chris Sommer, individually and

as Manager of Member Source

Media LLC,

 Defendants.

Case No. CV 08-642

STIPULATED FINAL JUDGMENT

FOR CIVIL PENALTIES AND

PERMANENT INJUNCTIVE

RELIEF

Plaintiff, the United States of America, acting upon

notification and authorization to the Attorney General by the

Federal Trade Commission (“FTC” or the “Commission”), pursuant to

Section 16(a)(1) of the Federal Trade Commission Act (“FTC Act”),

15 U.S.C. § 56(a)(1), has filed a complaint pursuant to Sections

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5(a)(1), 5(m)(1)(A), 13(b), 16(a), and 19 of the FTC Act,

15 U.S.C. §§ 45(a)(1), 45(m)(1)(A), 53(b), 56(a), and 57b and

under Section 7(a) of the Controlling the Assault of NonSolicited Pornography and Marketing Act of 2003 (“CAN-SPAM” or

the “CAN-SPAM Act”), 15 U.S.C. § 7706(a), to secure civil

penalties, a permanent injunction, and other equitable relief for

Defendants’ violations of Section 5(a) of the FTC Act, 15 U.S.C.

§ 45(a), and Section 5(a) of CAN-SPAM, 15 U.S.C. § 7704(a).

Defendants have waived service of the Summons and Complaint;

the parties have been represented by the attorneys whose names

appear hereafter; and the parties have agreed to settlement of

this action upon the following terms and conditions, without

adjudication of any issue of fact or law and without Defendants

admitting liability for any of the matters alleged in the

Complaint.

THEREFORE, on the joint motion of the parties, it is hereby

ORDERED, ADJUDGED AND DECREED as follows:

FINDINGS

1. This Court has jurisdiction over the subject matter of this

action pursuant to 15 U.S.C. §§ 45(m)(1)(A), 53(b), 56(a), 57b,

and 7706(a), and 28 U.S.C. §§ 1331, 1337(a), 1345, and 1355.

2. Plaintiff and Defendants consent to jurisdiction and venue

in this District.

3. The activities of Defendants are in or affecting commerce,

as defined in Section 4 of the FTC Act, 15 U.S.C. § 44.

4. The Complaint states a claim upon which relief may be

granted against Defendants under Section 5(a) of the CAN-SPAM

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Act, 15 U.S.C. § 7704(a), and Sections 5(a), 5(m)(1)(A), 13(b)

and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b),

and 57b.

5. Defendants have entered into this Stipulated Final Judgment

For Civil Penalties And Permanent Injunctive Relief (“Order”)

freely and without coercion. 

6. Defendants hereby waive all rights to appeal or otherwise

challenge or contest the validity of this Order.

7. Defendants agree that this Order does not entitle Defendants

to seek or to obtain attorneys’ fees as a prevailing party under

the Equal Access to Justice Act, 28 U.S.C. § 2412, and Defendants

further waive any rights to attorneys’ fees that may arise under

said provision of law.

8. Entry of this Order is in the public interest.

DEFINITIONS

For the purpose of this Order, the following definitions

shall apply:

1. “Commercial electronic mail (‘email’) message” means

any email message the primary purpose of which is the commercial

advertisement or promotion of a commercial product or service

(including content on an Internet website operated for a

commercial purpose) and that further satisfies the requirements

of 16 C.F.R. §§ 316.1 - 316.5, as they exist now and may be

amended.

2. Unless otherwise specified, “Defendants” means Member

Source Media LLC, d/b/a ConsumerGain.com, PremiumPerks.com,

FreeRetailRewards.com, and GreatAmericanGiveaways.com, Chris

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Sommer, and their successors and assigns.

3. “Document” is synonymous in meaning and equal in scope

to the usage of the term in Federal Rule of Civil Procedure

34(a), and includes writings, drawings, graphs, charts,

photographs, audio and video recordings, computer records, and

other data compilations from which information can be obtained

and translated, if necessary, into reasonably usable form through

detection devices. A draft or non-identical copy is a separate

document within the meaning of the term.

4. “Electronic mail (‘email’) address” means a

destination, commonly expressed as a string of characters,

consisting of a unique user name or mailbox (commonly referred to

as the “local part”) and a reference to an Internet domain

(commonly referred to as the “domain part”), whether or not

displayed, to which an email message can be sent or delivered.

5. “Electronic mail (‘email’) message” means a message

sent to a unique email address.

6. “Initiate,” when used with respect to a commercial

email message, means to originate or transmit such message or to

procure the origination or transmission of such message, but

shall not include actions that constitute routine conveyance of

such message. For purposes of this Order, more than one person

may be considered to have initiated a message.

7. "Landing page" means, in online marketing, a specific

web page that a visitor reaches after clicking a link or

advertisement in an email or banner ad. This page usually

showcases content that is an extension of the link or ad.

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8. “Person” means a natural person or a corporation,

partnership, proprietorship, limited liability company, or other

organization or legal entity, including an association,

cooperative, or agency, or other group or combination acting as

an entity.

9. “Procure,” when used with respect to the initiation of

a commercial email message, means intentionally to pay or provide

other consideration to, or induce, another person to initiate

such a message on one’s behalf. 

10. “Recipient,” when used with respect to a commercial

email message, means an authorized user of the email address to

which the message was sent or delivered. If a recipient of a

commercial email message has one or more email addresses in

addition to the address to which the message was sent or

delivered, the recipient shall be treated as a separate recipient

with respect to each such address. If an email address is

reassigned to a new user, the new user shall not be treated as a

recipient of any commercial email message sent or delivered to

that address before it was reassigned.

11. “Sender,” when used with respect to a commercial email

message, means a person who initiates such a message and whose

product, service, or Internet website is advertised or promoted

by the message.

ORDER

I. PROHIBITION AGAINST FAILING TO DISCLOSE MATERIAL INFORMATION

IT IS THEREFORE ORDERED that Defendants, their successors,

assigns, affiliates, subsidiaries, officers, agents, servants,

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and employees, and those persons in active concert or

participation with them who receive actual notice of this Order

by personal service or otherwise are hereby permanently

restrained and enjoined from:

A. In any email and online advertisement, and on any

landing page associated with such email or online advertisement,

that contains any direct or implied representation made by

Defendants, or made by any authorized agent on behalf of

Defendants, that a product or service is free, failing to

disclose, in the same color, font, and size, and within close

proximity to such representation that a purchase is required, or

that purchases are required, to obtain such product or service,

when such is the case;

B. On any landing page associated with any direct or

implied representation made by Defendants, or made by any

authorized agent on behalf of Defendants, that a product or

service is free, failing to disclose, in a clear and conspicuous

manner:

1. A list of the monetary obligations a consumer is

likely to incur to obtain the advertised product

or service, when such is the case;

2. A list of any non-monetary obligations a consumer

is likely to incur to obtain the advertised

product or service, such as having to apply and

qualify for credit cards or an automobile loan,

when such is the case.

The disclosures specified in subparagraphs 1 and 2 of this

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Part may be made from such landing page via a hyperlink, provided

that the hyperlink is labeled to convey the nature and relevance

of the information to which it leads, and is clearly and

conspicuously disclosed.

II. PROHIBITION AGAINST VIOLATING THE CAN-SPAM ACT

IT IS FURTHER ORDERED that Defendants, their successors,

assigns, affiliates, subsidiaries, officers, agents, servants,

and employees, and those persons in active concert or

participation with them who receive actual notice of this Order

by personal service or otherwise are hereby permanently

restrained and enjoined from violating the CAN-SPAM Act,

15 U.S.C. §§ 7701 et seq., attached hereto as Attachment A, and

as it may be amended, by, including, but not limited to,

initiating the transmission of a commercial email message that

misrepresents the content or subject matter of the message.

III. CIVIL PENALTIES

IT IS FURTHER ORDERED that Defendants shall pay to Plaintiff

a civil penalty, pursuant to Section 5(m)(1)(A) of the Federal

Trade Commission Act, 15 U.S.C. § 45(m)(1)(A), in the amount of

$200,000 as follows: 

A. Defendants shall make the payment required by this Part

within ten (10) business days of the date of entry of this Order

by electronic fund transfer or certified or cashier’s check in

accordance with the instructions provided by the Office of

Consumer Litigation, Civil Division, U.S. Department of Justice,

Washington, D.C. 20530, for appropriate disposition;

B. In the event of any default in payment, which default

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continues for ten (10) business days beyond the due date of

payment, the entire unpaid penalty, together with interest, as

computed pursuant to 28 U.S.C. § 1961, from the date of default

to the date of payment, shall immediately become due and payable;

C. This judgment represents a civil penalty owed to the

United States Government and is not compensation for actual

pecuniary loss. The Defendants agree that the facts as alleged

in the Complaint filed in this action shall be taken as true,

without further proof, in any subsequent litigation filed by or

on behalf of the Commission to collect any unpaid amount or

otherwise enforce its rights pursuant to this Order, including a

nondischargeability complaint filed in any bankruptcy case; and

D. Proceedings initiated under this Part are in addition

to, and not in lieu of, any other civil or criminal penalties

that may be provided by law, including any other proceedings the

Plaintiff may initiate to enforce this Order.

IV. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring

and investigating compliance with any provision of this Order:

A. Within ten (10) days of receipt of written notice from

a representative of the Commission or Plaintiff, Defendants each

shall submit additional written reports, sworn to under penalty

of perjury; produce documents for inspection and copying; appear

for deposition; and/or provide entry during normal business hours

to any business location in such Defendants’ possession or direct

or indirect control to inspect the business operation;

B. In addition, the Commission and Plaintiff are

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authorized to monitor compliance with this Order by all other

lawful means, including but not limited to the following:

1. Obtaining discovery from any person, without

further leave of court, using the procedures

prescribed by Fed. R. Civ. P. 30, 31, 33, 34, 36,

and 45;

2. Posing as consumers and suppliers to Defendants,

Defendants’ employees, or any other entity managed

or controlled in whole or in part by Defendants,

without the necessity of identification or prior

notice; and

C. Defendants shall permit representatives of the

Commission or Plaintiff to interview any employer, consultant,

independent contractor, representative, agent, or employee who

has agreed to such an interview, relating in any way to any

conduct subject to this Order. The person interviewed may have

counsel present.

Provided, however, that nothing in this Order shall limit

the Commission’s lawful use of compulsory process, pursuant to

Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1, to

obtain any documentary material, tangible things, testimony, or

information relevant to unfair or deceptive acts or practices in

or affecting commerce (within the meaning of 15 U.S.C.

§ 45(a)(1)).

V. COMPLIANCE REPORTING BY DEFENDANTS

IT IS FURTHER ORDERED that, in order that compliance with

the provisions of this Order may be monitored:

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A. For a period of five (5) years from the date of entry

of this Order:

1. Defendant Chris Sommer shall notify the Commission

of the following:

a. Any changes in his residence, mailing

addresses, and telephone numbers within ten

(10) days of the date of such change; 

b. Any changes in his employment status

(including self-employment), and any change

in his ownership in any business entity,

within ten (10) days of the date of such

change. Such notice shall include the name

and address of each business that he is

affiliated with, employed by, creates or

forms, or performs services for; a statement

of the nature of the business; and a

statement of his duties and responsibilities

in connection with the business or

employment; and

c. Any changes in his name or use of any aliases

or fictitious names; and

2. Defendants shall notify the Commission of any

changes in corporate structure that may affect

compliance obligations arising under this Order,

including but not limited to a dissolution,

assignment, sale, merger, or other action that

would result in the emergence of a successor

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entity; the creation or dissolution of a

subsidiary, parent, or affiliate that engages in

any acts or practices subject to this Order; the

filing of a bankruptcy petition; or a change in

the corporate name or address, at least thirty

(30) days prior to such change, provided that,

with respect to any proposed change in the

corporation about which Defendants learn less than

thirty (30) days prior to the date such action is

to take place, Defendants shall notify the

Commission as soon as is practicable after

obtaining such knowledge;

B. One hundred eighty (180) days after the date of entry

of this Order, Defendants each shall provide a written report to

the FTC, sworn to under penalty of perjury, setting forth in

detail the manner and form in which they have complied and are

complying with this Order. This report shall include, but not be

limited to:

1. For Defendant Chris Sommer:

a. His then-current residence address, mailing

addresses, and telephone numbers;

b. His then-current employment and business

addresses and telephone numbers, a

description of the business activities of

each such employer or business, and his title

and responsibilities for each such employer

or business; and

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c. Any other changes required to be reported

under subparagraph A of this Section; and

2. For all Defendants:

a. A copy of each acknowledgment of receipt of

this Order, obtained pursuant to Part VII.C

of this Order; and

b. Any changes required to be reported pursuant

to subsection A of this Part;

C. For the purposes of this Order, Defendants shall,

unless otherwise directed in writing by the Commission’s

authorized representatives, mail all written notifications to the

Commission to:

Associate Director for the 

Division of Enforcement

Federal Trade Commission

601 New Jersey Avenue, N.W.

Washington, D.C. 20580

Re: United States v. Member Source Media LLC

Case No. ______;

D. For the purposes of this Order, Defendants shall,

unless otherwise directed in writing by a representative of

Plaintiff, identify all written notifications required to be sent

to Plaintiff as in reference to DJ# 102-3436, and mail them to:

Director, Office of Consumer Litigation

U.S. Department of Justice - Civil Division

P.O. Box 386

Washington, D.C. 20044; and

E. For purposes of the compliance reporting and monitoring

required by this Order, representatives of Plaintiff and the

Commission are authorized to communicate directly with

Defendants.

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VI. RECORD KEEPING PROVISIONS 

IT IS FURTHER ORDERED that, for a period of eight (8) years

from the date of entry of this Order, Defendants and their

agents, employees, officers, corporations, successors, and

assigns, and those persons in active concert or participation

with them who receive actual notice of this Order by personal

service or otherwise, are hereby restrained and enjoined from

failing to create and retain the following records in connection

with the marketing, advertising, or promotion of any “free”

products or services:

A. Accounting records that reflect the cost of goods or

services sold, revenues generated, and the disbursement of such

revenues;

B. Personnel records accurately reflecting: the name,

address, and telephone number of each person employed in any

capacity by such business, including as an independent

contractor; that person's job title or position; the date upon

which the person commenced work; and the date and reason for the

person's termination, if applicable;

C. Customer files containing the names, addresses, phone

numbers, dollar amounts paid, quantity of items or services

purchased, and description of items or services purchased, to the

extent such information is obtained in the ordinary course of

business;

D. Complaints and refund requests (whether received

directly, indirectly or through any third party) and any

responses to those complaints or requests; and

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E. Copies of all sales scripts, training materials,

advertisements, or other marketing materials;

F. Records demonstrating reasonable policies and

procedures to process and handle customer inquiries and

complaints; and 

G. All records and documents necessary to demonstrate full

compliance with each provision of this Order, including but not

limited to, copies of acknowledgments of receipt of this Order

required by Part VIII, and all reports submitted to the FTC

pursuant to Part V of this Order.

VII. DISTRIBUTION OF ORDER BY DEFENDANTS

IT IS FURTHER ORDERED that, for a period of five (5) years

from the date of entry of this Order, Defendants shall deliver

copies of this Order as directed below:

A. Defendant Member Source Media LLC must deliver a copy

of this Order to all of its principals, officers, directors, and

managers. Defendant Member Source Media LLC also must deliver

copies of this Order to all of its employees, agents, and

representatives who engage in conduct related to the subject

matter of this Order. For current personnel, delivery shall be

within (5) days of service of this Order upon Defendants. For

new personnel, delivery shall occur prior to them assuming their

responsibilities;

B. For any business that Defendant Chris Sommer controls,

directly or indirectly, or in which Defendant Chris Sommer has a

majority ownership interest, Defendant Chris Sommer must deliver

a copy of this Order to all principals, officers, directors, and

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managers of that business. Defendant Chris Sommer must also

deliver copies of this Order to all employees, agents, and

representatives of that business who engage in conduct related to

the subject matter of this Order. For current personnel,

delivery shall be within (5) days of service of this Order upon

Defendants. For new personnel, delivery shall occur prior to

them assuming their responsibilities; and

C. Defendants must secure a signed and dated statement

acknowledging receipt of this Order, within thirty (30) days of

delivery, from all persons receiving a copy of this Order

pursuant to this Part.

VIII. ACKNOWLEDGMENT OF RECEIPT OF ORDER BY DEFENDANTS

IT IS FURTHER ORDERED that each defendant, within five (5)

business days of receipt of this Order as entered by the Court,

must submit to the Commission a truthful sworn statement

acknowledging receipt of this Order. 

IX. FEES AND COSTS

IT IS FURTHER ORDERED that each party to this Order hereby

agrees to bear its own costs and attorneys’ fees incurred in

connection with this action.

X. SEVERABILITY

IT IS FURTHER ORDERED that the provisions of this Order are

separate and severable from one another. If any provision is

stayed or determined to be invalid, the remaining provisions

shall remain in full force and effect.

XI. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court shall retain

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jurisdiction of this matter for purposes of construction,

modification, and enforcement of this Order.

XII. COMPLETE SETTLEMENT

The parties, by their respective counsel, hereby consent to

entry of the foregoing Order, which shall constitute a final

judgment and order in this matter. The parties further stipulate

and agree that the entry of the foregoing Order shall constitute

full, complete, and final settlement of this action.

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FOR THE PLAINTIFF:

UNITED STATES OF AMERICA:

JEFFREY S. BUCHOLTZ

Acting Assistant Attorney General

Civil Division

U.S. Department of Justice

EUGENE M. THIROLF

Director,

KENNETH L. JOST

Deputy Director,

Office of Consumer Litigation

 /s/ 

JOHN W. BURKE (VA. BAR NO. 72780)

Trial Attorney

Office of Consumer Litigation

Civil Division

U.S. Department of Justice

P.O. Box 386

Washington, D.C. 20044

Telephone: 202-353-2001

Facsimile: 202-514-8742

Email: josh.burke@usdoj.gov

FOR THE FEDERAL TRADE COMMISSION:

 /s/ 

LOIS C. GREISMAN

Associate Director for Marketing Practices

 /s/ 

STEPHEN L. COHEN

ETHAN ARENSON

Attorneys, Federal Trade Commission

600 Pennsylvania Ave., N.W.

Washington, D.C. 20580

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Stip. Final Judgment

CV 08-642 Page 18 of 18

FOR THE DEFENDANTS:

 /s/ 

Jeffrey K. Riffer

Jeffer Mangers Butler & Marmaro LLP

1900 Avenue of the Stars, 7 Floor th

Los Angeles, CA 90067

________________________________

Member Source Media LLC

BY: /s/ 

_____________________________

204 East 2nd Avenue, Suite 517

San Mateo, CA 94401

 /s/ 

Chris Sommer,

Individually and as Manager of Member Source Media LLC

SO ORDERED this ___________ day of ___________, 2008.

____________________________

United States District Judge

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 18 of 42
PUBLIC LAW 108-187--DEC. 16, 2003 117 STAT. 2699

Public Law 108-187

108th Congress

An Act

To regulate interstate commerce by imposing limitations and penalties on the transmission of unsolicited commercial electronic mail via the Internet.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the "Controlling the Assault of NonSolicited Pornography and Marketing Act of 2003", or the "CANSPAM Act of 2003".

SEC. 2. CONGRESSIONAL FINDINGS AND POLICY.

(a) F~DINas.--The Congress finds the following:

(1) Electronic mail has become au extremely important

and popular means of communication, relied on by millions

of Americans on a daily basis for personal and commercial

purposes. Its low cost and global reach make it extremely

convenient and efficient, and offer unique opportunities for

the development and growth of frictionless commerce.

(2) The convenience and efficiency of electronic mail are

threatened by the extremely rapid growth in the volume of

unsolicited commercial electronic mail. Unsolicited commercial

electronic mail is currently estimated to account for over half

of all electronic mail traffic, up from an estimated 7 percent

in 2001, and the volume continues to rise. Most of these messages are fraudulent or deceptive in one or more respects.

(3) The receipt of unsolicited commercial electronic mail

may result in costs to recipients who cannot refuse to accept

such mail and who incur costs for the storage of such mail,

or for the time spent accessing, reviewing, and discarding such

mail, or for both.

(4) The receipt of a large number of unwanted messages

also decreases the convenience of electronic mail and creates

a risk that wanted electronic mail messages, both commercial

and noncommercial, will be lost, overlooked, or discarded amidst

the larger volume of unwanted messages, thus reducing the

reliability and usefulness of electronic mail to the recipient.

(5) Some commercial electronic mail contains material that

many recipients may consider vulgar or pornographic in nature.

(6) The growth in unsolicited commercial electronic mail

imposes significant monetary costs on providers of Internet

access services, businesses, and educational and nonprofit

institutions that carry and receive such mail, as there is a

finite volume of mail that such providers, businesses, and

Dec. 16, 2003

IS. 877]

Controlling the

Assault of NonSolicited

Pornography and

Marketing Act of

2003.

15 USC 7701

note.

15 USC 7701.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 19 of 42
117 STAT. 2700 PUBLIC LAW 108-187--DEC. 16, 2003

15 USC 7702.

institutions can handle without further investment in infrastructure.

(7) Many senders of unsolicited commercial electronic mail

purposefully disguise the source of such mail.

(8) Many senders of unsolicited commercial electronic mail

purposefully include misleading information in the messages’

subject lines in order to induce the recipients to view the

messages.

(9) While some senders of commercial electronic mail messages provide simple and reliable ways for recipients to reject

(or "opt-out" oi) receipt of commercial electronic mail from

such senders in the future, other senders provide no such

"opt-out" mechanism, or refuse to honor the requests of recipients not to receive electronic mail from such senders in the

future, or both.

(10) Many senders of bulk unsolicited commercial electronic

mail use computer programs to gather large numbers of electronic mail addresses on an automated basis from Internet

websites or online services where users must post their

addresses in order to make full use of the website or service.

(11) Many States have enacted legislation intended to regulate or reduce unsolicited commercial electronic mail, but these

statutes impose different standards and requirements. As a

result, they do not appear to have been successful in addressing

the problems associated with unsolicited commercial electronic

mail, in part because, since an electronic mail address does

not specify a geographic location, it can be extremely difficult

for law-abiding businesses to know with which of these disparate statutes they are required to comply.

(12) The problems associated with the rapid growth and

abuse of unsolicited commercial electronic mail cannot be solved

by Federal legislation alone. The development and adoption

of technological approaches and the pursuit of cooperative

efforts with other countries will be necessary as well.

(b) CONGRESSIONAL DETERMINATION OF PUBLIC POLICY.--On

the basis of the findings in subsection (a), the Congress determines

that--

(1) there is a substantial government interest in regulation

of commercial electronic mail on a nationwide basis;

(2) senders of commercial electronic mail should not mislead recipients as to the source or content of such mail; and

(3) recipients of commercial electronic mail have a right

to decline to receive additional commercial electronic mail from

the same source.

SEC. 8. DEFINITIONS.

In this Act:

(1) AFFIRMATIVE CONSENT.--The term "affirmative consent", when used with respect to a commercial electronic mail

message, means that-

(A) the recipient expressly consented to receive the

message, either in response to a clear and conspicuous

request for such consent or at the recipient’s own initiative;

and

(B) if the message is from a party other than the

party to which the recipient communicated such consent,

the recipient was given clear and conspicuous notice at

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 20 of 42
PUBLIC LAW 108-187--DEC. 16, 2003 117 STAT. 2701

the time the consent was communicated that the recipient’s

electronic mail address could be transferred to such other

party for the purpose of initiating commercial electronic

mail messages.

(2) COMNfERCIAL ELECTRONIC MAIL MESSAGE.--

(A) IN GENERAL.--The term "commercial electronic mail

message" means any electronic mail message the primary

propose of which is the commercial advertisement or promotion of a commercial product or service (including content on an Internet website operated for a commercial

purpose).

(B) TRANSACTIONAL OR RELATIONSHIP MESSAGES.--The

term "commercial electronic mail message" does not include

a transactional or relationship message.

(C) REGULATIONS REGARDING PRIMARY PURPOSE.--Not

later than 12 months after the date of the enactment

of this Act, the Commission shall issue regulations pursuant to section 13 defining the relevant criteria to facilitate

the determination of the primary purpose of an electronic

m~il message.

(D) REFERENCE TO COIVIPANY OR WEBSITE.--The inclusion of a reference to a commercial entity or a link to

the website of a commercial entity in an electronic mail

message does not, by itself, cause such message to be

treated as a commercial electronic mail message for purposes of this Act if the contents or circumstances of the

message indicate a primary propose other than commercial

advertisement or promotion of a commercial product or

service.

(3) CoMMISSION.--The term "Commission" means the Federal Trade Commission.

(4) DOMAIN NAME. The term "domain name" means any

alphanumeric designation which is registered with or assigned

by any domain name registrar, domain name registry, or other

domain name registration authority as part of an electronic

address on the Internet.

(5) ELEcTRoNIc MAIL ADDRESS. The term "electronic mail

address" means a destination, commonly expressed as a string

of characters, consisting of a unique user name or mailbox

(commonly referred to as the ’~local part") and a reference

to an Internet domain (commonly referred to as the "domain

part"), whether or not displayed, to which an electronic marl

message can be sent or delivered.

(6) ELEcTRoNIc MAIL MESSAGE.---The term "electronic marl

message" means a message sent to a unique electronic mail

address.

(7) FTC ACT.--The term "FTC Act" means the Federal

Trade Commission Act (15 U.S.C. 41 et seq.).

(8) HEADER INFORMATION.--The term "header information"

means the source, destination, and routing information

attached to an electronic mail message, including the originating domain name and originating electronic mail address,

and any other information that appears in the line identifying,

or purporting to identify, a person initiating the message.

(9) INITIATE.--The term "initiate", when used with respect

to a commercial electronic mail message, means to originate

or transmit such message or to procure the origination or

Deadline.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 21 of 42
117 STAT. 2702 PUBLIC LAW 108-187mDEC. 16, 2003

transmission of such message, but shall not include actions

that constitute routine conveyance of such message. For purposes of this paragraph, more than one person may be considered to have initiated a message.

(10) INTERNET. The term "Internet" has the meaning given

that term in the Internet Tax Freedom Act (47 U.S.C. 151

nt).

(11) INTEP~qET ACCESS SERVICE.--The term "Internet access

service" has the meaning given that term in section 231(e)(4)

of the Communications Act of 1934 (47 U.S.C. 231(e)(4)).

(12) PROCURE. The term "procure", when used with

respect to the initiation of a commercial electronic mail message, means intentionally to pay or provide other consideration

to, or induce, another person to initiate such a message on

one’s behs~.

(13) PROTECTED COMPUTER.--The term "protected computer" has the meaning given that term in section 1030(e)(2)(B)

of title 18, United States Code.

(14) RECIPIENT.~The term "recipient", when used with

respect to a commercial electronic mail message, means an

authorized user of the electronic mail address to which the

message was sent or delivered. If a recipient of a commercial

electronic mail message has one or more electronic mail

addresses in addition to the address to which the message

was sent or delivered, the recipient shall be treated as a separate recipient with respect to each such address. If an electronic

mail address is reassigned to a new user, the new user shall

not be treated as a recipient of any commercial electronic

mall message sent or dehvered to that address before it was

reassigned.

(15) ROUTINE CONVEYANCE.--The term "routine conveyance" means the transmission, routing, relaying, handling, or

storing, through an automatic technical process, of an electronic

mail message for which another person has identified the recipients or provided the recipient addresses.

(16) SENDER.--

(A) IN GENERAL.mExcept as provided in subparagraph

(B), the term "sender", when used with respect to a

commercial electronic mail message, means a person who

initiates such a message and whose product, service, or

Internet web site is advertised or promoted by the message.

(B) SEPARATE Ln~ES OF Busn~ss OR DIWSIONS. If an

entity operates through separate lines of business or divisions and holds itself out to the recipient throughout the

message as that particular line of business or division

rather than as the entity of which such line of business

or division is a part, then the line of business or the

division shall be treated as the sender of such message

for purposes of this Act.

(17) TP~NSACTIONAL OR RELATIONSHIP MESSAGE.--

(A) IN GENEI~L.--The term "transactional or relationship message" means an electronic mail message the primary purpose of which is-

(i) to facilitate, complete, or confirm a commercial

transaction that the recipient has previously agreed

to enter into with the sender;

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 22 of 42
PUBLIC LAW 108-187--DEC. 16, 2003 117 STAT. 2703

(ii) to provide warranty information, product recall

information, or safety or security information with

respect to a commercial product or service used or

purchased by the recipient;

(iii) to provide-

(I) notification concerning a change in the

terms or features of;

(II) notification of a change in the recipient’s

standing or status with respect to; or

(III) at regular periodic intervals, account balance information or other type of account statement with respect to,

a subscription, membership, account, loan, or comparable ongoing commercial relationship involving the

ongoing purchase or use by the recipient of products

or services offered by the sender;

(iv) to provide information directly related to an

employment relationship or related benefit plan in

which the recipient is currently involved, participating,

or enrolled; or

(v) to deliver goods or services, including product

updates or upgrades, that the recipient is entitled to

receive under the terms of a transaction that the

recipient has previously agreed to enter into with the

sender.

(B) MODIFICATION OF DEFINITION.--The Commission by

regulation pursuant to section 13 may modify the definition

in subparagraph (A) to expand or contract the categories

of messages that are treated as transactional or relationship messages for purposes of this Act to the extent that

such modification is necessary to accommodate changes

in electronic marl technology or practices and accomplish

the purposes of this Act.

SEC. 4. PROHIBITION AGAINST PREDATORY AND ABUSIVE COMlYlERCIAL E-MAIL.

(a) OFFENSE.--

(1) IN GENERAL.--Chapter 47 of title 18, United States

Code, is amended by adding at the end the following new

section:

"§ 1037. Fraud and related activity in connection with electronic mail

"(a) IN GENERAL.--Whoever, in or affecting interstate or foreign

commerce, knowingly--

"(1) accesses a protected computer without authorization,

and intentionally initiates the transmission of multiple commercial electronic mail messages from or through such computer,

"(2) uses a protected computer to relay or retransmit multiple commercial electronic mail messages, with the intent to

deceive or mislead recipients, or any Iuternet access service,

as to the origin of such messages,

"(3) materially falsifies header information in multiple

commercial electronic mall messages and intentionally initiates

the transmission of such messages,

"(4) registers, using information that materially falsifies

the identity of the actual registrant, for five or more electronic

15 USC 7703.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 23 of 42
117 STAT. 2704 PI~LIC LAW 108-187 DEC. 16, 2003

Courts.

mail accounts or online user accounts or two or more domain

names, and intentionally initiates the transmission of multiple

commercial electronic marl messages from any combination of

such accounts or domain names, or

"(5) falsely represents oneself to be the registrant or the

legitimate successor in interest to the registrant of 5 or more

Internet Protocol addresses, and intentionally initiates the

transmission of multiple commercial electronic mail messages

from such addresses,

or conspires to do so, shall be punished as provided in subsection

(b).

"(b) PENALTIES.--The punishment for an offense under subsection (a) is-

"(1) a fine under this title, imprisonment for not more

than 5 years, or both,

"(A) the offense is committed in furtherance of any

felony under the laws of the United States or of any State;

or

"(B) the defendant has previously been convicted under

this section or section 1030, or under the law of any State

for conduct involving the transmission of multiple commercial electronic mail messages or unauthorized access to

a computer system;

"(2) a fine under this title, imprisonment for not more

than 3 years, or both, if--

"(A) the offense is an offense under subsection (a)(1);

"(B) the offense is an offense under subsection (a)(4)

and involved 20 or more falsified electronic mail or online

user account registrations, or 10 or more falsified domain

name registrations;

"(C) the volume of electronic mail messages transmitted in furtherance of the offense exceeded 2,500 during

any 24-hour period, 25,000 during any 30-day period, or

250,000 during any 1-year period;

"(D) the offense caused loss to one or more persons

aggregating $5,000 or more in value during any 1-year

period;

"(E) as a result of the offense any individual commitring the offense obtained anything of value aggregating

$5,000 or more during any 1-year period; or

"(F) the offense was undertaken by the defendant in

concert with three or more other persons with respect

to whom the defendant occupied a position of organizer

or leader; and

"(3) a fine under this title or imprisonment for not more

than I year, or both, in any other case.

"(C) FORFEITURE.m

"(1) IN GENEB~kL. The court, in imposing sentence on a

person who is convicted of an offense under this section, shall

order that the defendant forfeit to the United States--

"(A) any property, real or personal, constituting or

traceable to gross proceeds obtained from such offense;

and

"(B) any equipment, software, or other technology used

or intended to be used to commit or to facilitate the commission of such offense.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 24 of 42
PUBLIC LAW 108-187--DEC. 16, 2003 117 STAT. 2705

"(2) PROCEDURES.--The procedures set forth in section 413

of the Controlled Substances Act (21 U.S.C. 853), other than

subsection (d) of that section, and in Rule 32.2 of the Federal

Rules of Criminal Procedure, shall apply to all stages of a

criminal forfeiture proceeding under this section.

"(d) DEFINITIONS.---~ this section:

"(1) Loss.--The term ~loss’ has the meaning given that

term in section 1030(e) of this title.

"(2) MATERIALLY.--For purposes of paragraphs (3) and (4)

of subsection (a), header information or registration information

is materially falsified if it is altered or concealed in a manner

that would impair the ability of a recipient of the message,

an Internet access service processing the message on behalf

of a recipient, a person alleging a violation of this section,

or a law enforcement agency to identify, locate, or respond

to a person who initiated the electronic mail message or to

investigate the alleged violation.

"(3) MULTIPLE. The term ’multiple’ means more than 100

electronic mail messages during a 24-hour period, more than

1,000 electronic mail messages during a 30-day period, or more

than 10,000 electronic mail messages during a 1-year period.

"(4) OTHER TER!Vls.--Any other term has the meaning given

that term by section 3 of the CAN-SPAM Act of 2003.".

(2) CONFORM]NG AME.NDlV~ENT.--The chapter analysis for

chapter 47 of title 18, United States Code, is amended by

adding at the end the following:

"Sec.

"1037. Fraud and related activity in connection with electronic marl.".

(b) UNITED STATES SENTENCING CO1VINIISSION.--

(1) DmEcTIVE.--Pursuant to its authority under section

994(p) of title 28, United States Code, and in accordance with

this section, the United States Sentencing Commission shall

review and, as appropriate, amend the sentencing guidelines

and policy statements to provide appropriate penalties for violations of section 1037 of title 18, United States Code, as added

by this section, and other offenses that may be facilitated

by the sending of large quantities of unsolicited electronic mail.

(2) REQUIRENIENTS.--In carrying out this subsection, the

Sentencing Commission shall consider providing sentencing

enhancements for--

(A) those convicted under section 1037 of title 18,

United States Code, who--

(i) obtained electronic mail addresses through

improper means, including-

(I) harvesting electronic mail addresses of the

users of a website, proprietary service, or other

online public forum operated by another person,

without the authorization of such person; and

(II) randomly generating electronic mail

addresses by computer; or

(ii) knew that the commercial electronic mail messages involved in the offense contained or advertised

an Internet domain for which the registrant of the

domain had provided false registration information;

and

Applicability.

28 USC 994 note.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 25 of 42
117 STAT. 2706 PUBLIC LAW 108-187--DEC. 16, 2003

15 USC 7704.

(B) those convicted of other offenses, including offenses

involving fraud, identity theft, obscenity, child pornography, and the sexual exploitation of children, if such

offenses involved the sending of large quantities, of electronic mail.

(C) SENSE OF CONGRESS.--It is the sense of Congress that-

(l) Spare has become the method of choice for those who

distribute pornography, perpetrate fraudulent schemes, and

introduce viruses, worms, and Trojan horses into personal and

business computer systems; and

(2) the Department of Justice should use all existing law

enforcement tools to investigate and prosecute those who send

bulk commercial e-mail to facilitate the commission of Federal

crimes, including the tools contained in chapters 47 and 63

of title 18, United States Code (relating to fraud and false

statements); chapter 71 of title 18, United States Code (relating

to obscenity); chapter 110 of title 18, United States Code

(relating to the sexual exploitation of children); and chapter

95 of title 18, United States Code (relating to racketeering),

as appropriate.

SEC. 5. OTHER PROTECTIONS FOR USERS OF COMMERCIAL ELECTRONIC MAIL.

(a) REQUIREMENTS FOR TRANSMISSION OF MESSAGES.--

(1) PROHIBITION OF FALSE OR MISLEADING TRANSMISSION

INFORMATION.--It is unlawfal for any person to initiate the

transmission, to a protected computer, of a commercial electronic mail message, or a transactional or relationship message,

that contains, or is accompanied by, header information that

is materially false or materially misleading. For purposes of

this paragraph--

(A) header information that is technically accurate but

includes an originating electronic mail address, domain

name, or Internet Protocol address the access to which

for purposes of initiating the message was obtained by

means of false or fraudulent pretenses or representations

shall be considered materially misleading;

(B) a "from" line (the line identifying or purporting

to identify a person initiating the message) that accurately

identifies any person who initiated the message shall not

be considered materially false or materially misleading;

and

(C) header information shall be considered materially

misleading if it fails to identify accurately a protected

computer used to initiate the message because the person

initiating the message knowingly uses another protected

computer to relay or retransmit the message for purposes

of disguising its origin.

(2) PROHIBITION OF DECEPTIVE SUBJECT HEADINGS.--It is

unlawful for any person to initiate the transmission to a protected computer of a commercial electronic mail message if

such person has actual knowledge, or knowledge fairly implied

on the basis of objective circumstances, that a subject heading

of the message would be likely to mislead a recipient, acting

reasonably under the circumstances, about a material fact

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 26 of 42
PUBLIC LAW 108-187--DEC. 16, 2003 117 STAT. 2707

regarding the contents or subject matter of the message (consistent with the criteria used in enforcement of section 5 of

the Federal Trade Commission Act (15 U.S.C. 45)).

(3) INCLUSION Of I~ETURN ADDRESS OR COMPARABLE 1VIECHANISM IN COMMERCIAL ELECTRONIC MAIL.--

(A) IN GENERAL.--It is unlawful for any person to initiate the transmission to a protected computer of a commercial electronic mail message that does not contain a

functioning return electronic mail address or other Internet-based mechanism, clearly and conspicuously displayed,

that-

(i) a recipient may use to submit, in a manner

specified in the message, a reply electronic mail message or other form of Internet-based communication

requesting not to receive future commercial electronic

mail messages from that sender at the electronic mail

address where the message was received; and

(ii) remains capable of receiving such messages

or communications for no less than 30 days after the

transmission of the original message.

(B) I~/~ORE DETAILED OPTIONS PossIBLE.--The person

initiating a commercial electronic mail message may

comply with subparagraph (A)(i) by providing the recipient

a list or menu from which the recipient may choose the

specific types of commercial electronic mail messages the

recipient wants to receive or does not want to receive

from the sender, if the list or menu includes an option

under which the recipient may choose not to receive any

commercial electronic mail messages from the sender.

(C) TEMPORARY INABILITY TO RECEIVE MESSAGES OR

PROCESS REQUESTS.~A return electronic mail address or

other mechanism does not fail to satisfy the requirements

of subparagraph (A) if it is unexpectedly and temporarily

unable to receive messages or process requests due to a

technical problem beyond the control of the sender if the

problem is corrected within a reasonable time period.

(4) PROHIBITION OF TRANSMISSION OF CO1VflVIERCIAL ELECTRONIC mAIL AFTER OBJECTION.--

(A) IN GENERAL.--If a recipient makes a request using

a mechanism provided pursuant to paragraph (3) not to

receive some or any commercial electronic mail messages

from such sender, then it is unlawful-

(i) for the sender to initiate the transmission to

the recipient, more than 10 business days after the

receipt of such request, of a commercial electronic mail

message that falls within the scope of the request;

(ii) for any person acting on behalf of the sender

to initiate the transmission to the recipient, more than

10 business days after the receipt of such request,

of a commercial electronic mail message with actual

knowledge, or knowledge fairly implied on the basis

of objective circumstances, that such message falls

within the scope of the request;

(iii) for any person acting on behalf of the sender

to assist in initiating the transmission to the recipient,

through the provision or selection of addresses to which

the message will be sent, of a commercial electronic

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 27 of 42
117 STAT. 2708 PUBLIC LAW 108-187--DEC. 16, 2003

mail message with actual knowledge, or knowledge

fairly implied on the basis of objective circumstances,

that such message would violate clause (i) or (ii); or

(iv) for the sender, or any other person who knows

that the recipient, has made such a request, to sell,

lease, exchange, or otherwise transfer or release the

electronic mail address of the recipient (including

through any transaction or other transfer involving

mailing lists bearing the electronic mail address of

the recipient) for any purpose other than compliance

with this Act or other provision of law.

(B) SUBSEQUENT AFFIRMATIVE CONSENT.--A prohibition

in subparagraph (A) does not apply if there is affirmative

consent by the recipient subsequent to the request under

subparagraph (A).

(5) INCLUSION OF IDENTIFIER, OPT-OUT, AND PHYSICAL

ADDRESS IN COIM]M3~RCIAL ELECTRONIC MAIL.--(A) It is unlawhfl

for any person to initiate the transmission of any commercial

electronic mail message to a protected computer unless the

message provides--

(i) clear and conspicuous identification that the message is an advertisement or solicitation;

(ii) clear and conspicuous notice of the opportunity

under paragraph (3) to decline to receive further commercial electronic mail messages from the sender; and

(iii) a valid physical postal address of the sender.

(B) Subparagraph (A)(i) does not apply to the transmissidn

of a commercial electronic mail message if the recipient has

given prior affirmative consent to receipt of the message.

(6) MATERIALLY.---For purposes of paragraph (1), the term

"materially", when used with respect to false or misleading

header information, includes the alteration or concealment of

header information in a manner that would impair the ability

of an Internet access service processing the message on behalf

of a recipient, a person alleging a violation of this section,

or a law enforcement agency to identify, locate, Or respond

to a person who initiated the electronic mail message or to

investigate the alleged violation, or the ability of a recipient

of the message to respond to a person who initiated the electronic message.

(b) AGGRAVATED VIOLATIONS RELATING TO COMMERCIAL ELECTRONIC MAIL.~

(1) ADDRESS HARVESTING AND DICTIONARY ATTACKS.--

(A) IN GENERAL.--It is unlawful for any person to initiate the transmission, to a protected computer, of a

commercial electronic mail message that is unlawfizl under

subsection (a), or to assist in the origination of such message through the provision or selection of addresses to

which the message will be transmitted, if such person

had actual knowledge, or knowledge fairly implied on the

basis of objective circumstances, that-

(i) the electronic mail address of the recipient was

obtained using an automated means from an Internet

website or proprietary online service operated by

another person, and such website or online service

included, at the time the address was obtained, a notice

stating that the operator of such website or online

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 28 of 42
PUBLIC LAW 108-187NDEC. 16, 2003 117 STAT. 2709

service will not give, sell, or otherwise transfer

addresses maintained by such website or online service

to any other party for the purposes of initiating, or

enabling others to initiate, electronic mail messages;

or

(ii) the electronic mail address of the recipient

was obtained using an automated means that generates possible electronic mail addresses by combining

names, letters, or numbers into numerous permutations.

(B) DISCLMMER.--Nothing in this paragraph creates

an ownership or proprietary interest in such electronic

mail addresses.

(2) AUTOMATED CREATION OF MULTIPLE ELECTRONIC MAIL

ACCOUNTS.--It iS unlawful for any person to use scripts or

other automated means to register for multiple electronic marl

accounts or online user accounts from which to transmit to

a protected computer, or enable another person to transmit

to a protected computer, a commercial electronic mail message

that is unlawful under subsection (a).

(3) RELAY OR RETRANSMISSION THROUGH. UNAUTHORIZED

ACCESS.--It is unlawful for any person knowingly to relay or

retransmit a commercial electronic mail message that is unlawful under subsection (a) from a protected computer or computer

network that such person has accessed without authorization.

(c) SUPPLEMENTARY RUI~MAKING AtyI~IORITY.--The Commission shall by regulation, pursuant to section 13--

(1) modify the 10-business-day period under subsection

(a)(4)(A) or subsection (a)(4)(B), or both, if the Commission

determines that a different period would be more reasonable

after taking into account-

(A) the purposes of subsection (a);

(B) the interests of recipients of commercial electronic

mail; and

(C) the burdens imposed on senders of lawful commercial electronic mail; and

(2) specify additional activities or practices to which subsection (b) applies if the Commission determines that those

activities or practices are contributing substantially to the proliferation of commercial electronic mail messages that are

unlawful under subsection (a).

(d) REQUIREMENT To PLACE WAmqlNG LABELS ON COMMERCIAL

ELECTRONIC 1V’IAIL CONTAINING SEXUALLY ORIENTED 1ViATERIAL.--

(1) IN GENERAL.--No person may initiate in or affecting

interstate commerce the transmission, to a protected computer,

of any commercial electronic mail message that includes sexually oriented material and-

(A) fail to include in subject heading for the electronic

mail message the marks or notices prescribed by the

Commission under this subsection; or

(B) fail to provide that the matter in the message

that is initially viewable to the recipient, when the message

is opened by any recipient and absent any further actions

by the recipient, includes only-

(i) to the extent required or authorized pursuant

to paragraph (2), any such marks or notices;

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 29 of 42
117 STAT. 2710 PUBLIC LAW 108-187--DEC. 16, 2003

Deadline.

Federal Resster,

publication.

15 USC 7705.

(ii) the information required to be included in the

message pursuant to subsection (a)(5); and

(iii) instructions on how to access, or a mechanism

to access, the sexually oriented material.

(2) PRIOR AFFIRMATIVE CONSENW.--Paragraph (1) does not

apply to the transmission of an electronic mail message if

the recipient has given prior ~ative consent to receipt

of the message.

(3) PRESCRIPTION OF MARES AND NOTICES.--Not later than

120 days after the date of the enactment of this Act, the

Commission in consultation with the Attorney General shall

prescribe clearly identifiable marks or notices to be included

in or associated with commercial electronic mail that contains

sexually oriented material, in order to inform the recipient

of that fact and to facilitate filtering of such electronic mail.

The Commission shall publish in the Federal Register and

provide notice to the public of the marks or notices prescribed

under this paragraph.

(4) DEF1NITION.--~ this subsection, the term "sexually oriented material" means any material that depicts sexually

explicit conduct (as that term is defined in section 2256 of

title 18, United States Code), unless the depiction constitutes

a small and insignificant part of the whole, the remainder

of which is not primarily devoted to sexual matters.

(5) PENALTY.~Whoever knowingly violates paragraph (1)

shall be fined under title 18, United States Code, or imprisoned

not more than 5 years, or both.

SEC. 6. BUSINESSES KNOWINGLY PROMOTED BY ELECTRONIC MAIL

WITH FALSE OR lVIISLEADING TRANSMISSION INFORMATION.

(a) IN GENERAL.--It is unlawful for a person to promote, or

allow the promotion of, that person’s trade or business, or goods,

products, property, or services sold, offered for sale, leased or offered

for lease, or otherwise made available through that trade or business, in a commercial electronic mail message the transmission

of which is in violation of section 5(a)(1) if that person-

(l) knows, or should have known in the ordinary course

of that person’s trade or business, that the goods, products,

property, or services sold, offered for sale, leased or offered

for lease, or otherwise made available through that trade or

business were being promoted in such a message;

(2) received or expected to receive an economic benefit

from such promotion; and

(3) took no reasonable action--

(A) to prevent the transmission; or

(B) to detect the transmission and report it to the

Commission.

(b) LIMITED ENFORCEMENT AGAINST THmD PARTmS.--

(1) IN GENERAL.--Except as provided in paragraph (2), a

person (hereinafter referred to as the "third party") that provides goods, products, property, or services to another person

that violates subsection (a) shall not be held liable for such

violation.

(2) EXCEPTION. Liability for a violation of subsection (a)

shall be imputed to a third party that provides goods, products,

property, or services to another person that violates subsection

(a) if that third party--

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 30 of 42
PUBLIC LAW 108-187mDEC. 16, 2003 117 STAT. 2711

(A) owns, or has a greater than 50 percent ownership

or economic interest in, the trade or business of the person

that violated subsection (a); or

(B)(i) has actual knowledge that goods, products, property, or services are promoted in a commercial electronic

mail message the transmission of which is in violation

of section 5(a)(1); and

(ii) receives, or expects to receive, an economic benefit

from such promotion.

(c) EXCLUSIVE ENFORCEMENT BY FTC.--Subsections (i) and (g)

of section 7 do not apply to violations of this section.

(d) SAVINGS PROVISION.mExcept as provided in section 7(f)(8),

nothing in this section may be construed to limit or prevent any

action that may be taken under this Act with respect to any violation of any other section of this Act.

SEC. 7. ENFORCEMENT GENERALLY.

(a) VIOLATION IS UNFAIR OR DECEPTIVE ACT OR PRACTICE.--

Except as provided in subsection (b), this Act shall be enforced

by the Commission as if the violation of this Act were an unfair

or deceptive act or practice proscribed under section 18(a)(1)(B)

of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

(b) ENFORCEMENT BY CERTAIN OTHER AGENCIES.mCompliance

with this Act shall be enforced~

(1) under section 8 of the Federal Deposit Insurance Act

(12 U.S.C. 1818), in the case of-

(A) national banks, and Federal branches and Federal

agencies of foreign banks, by the Office of the Comptroller

of the Currency;

(B) member banks of the Federal Reserve System

(other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies,

and insured State branches of foreign banks), commercial

lending companies owned or controlled by foreign banks,

organizations operating under section 25 or 25A of the

Federal Reserve Act (12 U.S.C. 601 and 611), and bank

holding companies, by the Board;

(C) banks insured by the Federal Deposit Insurance

Corporation (other than members of the Federal Reserve

System) and insured State branches of foreign banks, by

the Board of Directors of the Federal Deposit Insurance

Corporation; and

(D) savings associations the deposits of which are

insured by the Federal Deposit Insurance Corporation, by

the Director of the Office of Thrift Supervision;

(2) under the Federal Credit Union Act (12 U.S.C. 1751

et seq.) by the Board of the National Credit Union Administration with respect to any Federally insured credit union;

(3) under the Securities Exchange Act of 1934 (15 U.S.C.

78a et seq.) by the Securities and Exchange Commission with

respect to any broker or dealer;

(4) under the Investment Company Act of 1940 (15 U.S.C.

80a-1 et seq.) by the Securities and Exchange Commission

with respect to investment companies;

(5) under the Investment Advisers Act of 1940 (15 U.S.C.

80b-1 et seq.) by the Securities and Exchange Commission

with respect to investment advisers registered under that Act;

15 USC 7706.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 31 of 42
117 STAT. 2712 PUBLIC LAW 108-187--DEC. 16, 2003

(6) under State insurance law in the case of any person

engaged in providing insurance, by the applicable State insurance authority of the State in which the person is domiciled,

subject to section 104 of the Gramm-Bliley-Leach Act (15 U.S.C.

6701), except that in any State in which the State insurance

authority elects not to exercise this power, the enforcement

authority pursuant to this Act shall be exercised by the

Commission in accordance with subsection (a);

(7) under part A of subtitle VII of title 49, United States

Code, by the Secretary of Transportation with respect to any

air carrier or foreign air carrier subject to that part;

(8) under the Packers and Stockyards Act, 1921 (7 U.S.C.

181 et seq.) (except as provided in section 406 of that Act

(7 U.S.C. 226, 227)), by the Secretary of Agriculture with respect

to any activities subject to that Act;

(9) under the Farm Credit Act of 1971 (12 U.S.C. 2001

et seq.) by the Farm Credit Administration with respect to

any Federal land bank, Federal land bank association, Federal

intermediate credit bank, or production credit association; and

(10) under the Communications Act of 1934 (47 U.S.C.

151 et seq.) by the Federal Communications Commission with

respect, to any person subject to the provisions of that Act.

(c) EXERCISE OF CERTAIN POWERS.--For the propose of the

exercise by any agency referred to in subsection (b) of its powers

under any Act referred to in that subsection, a violation of this

Act is deemed to be a violation of a Federal Trade Commission

trade regulation rule. In addition to its powers under any provision

of law specifically referred to in subsection (b), each of the agencies

referred to in that subsection may exercise, for the purpose of

enforcing compliance with any requirement imposed under this

Act, any other authority conferred on it by law.

(d) ACTIONS BY TI-IE COM_VnSSION. The Commission shall prevent any person from violating this Act in the same manner, by

the same means, and with the same jurisdiction, powers, and duties

as though all applicable terms and provisions of the Federal Trade

Commission Act (15 U.S.C. 41 et seq.) were incorporated into and

made a part of this Act. Any entity that violates any provision

of that subtitle is subject to the penalties and entitled to the

privileges and immunities provided in the Federal Trade Commission Act in the same manner, by the same means, and with the

same jurisdiction, power, and duties as though all applicable terms

and provisions of the Federal Trade Commission Act were incorporated into and made a part of that subtitle.

(e) AVAmAB[LITY OF CEASE-AND-DESIST ORDERS AND INJUNCTIVE

RELIEF WITHOUT SHOWING OF KNOWLEDGE.--Notwithstanding any

other provision of this Act, in any proceeding or action pursuant

to subsection (a), (b), (c), or (d) of this section to enforce compliance,

through an order to cease and desist or an injunction, with section

5(a)(1)(C), section 5(a)(2), clause (ii), (iii), or (iv) of section 5(a)(4)(A),

section 5(b)(1)(A), or section 5(b)(3), neither the Commission nor

the Federal Communications Commission shall be required to allege

or prove the state of mind required by such section or subparagraph.

(f) ENFORCEMENT BY STATES.--

(1) CIVIL ACTION.---In any case in which the attorney general of a State, or an official or agency of a State, has reason

to believe that an interest of the residents of that State has

been or is threatened or adversely affected by any person who

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 32 of 42
PUBLIC LAW 108-187--DEC. 16, 2003 i17 STAT. 2713

violates paragraph (1) or (2) of section 5(a), who violates section

5(d), or who engages in a pattern or practice that violates

paragraph (3), (4), or (5) of section 5(a), of this Act, the attorney

general, official, or agency of the State, as parens patriae,

may bring a civil action on behalf of the residents of the

State in a district court of the United States of appropriate

jurisdiction-

(A) to enjoin further violation of section 5 of this Act

by the defendant; or

(B) to obtain damages on behalf of residents of the

State, in an amount equal to the greater

(i) the actual monetary loss suffered by such residents; or

(ii) the amount determined under paragraph (3).

(2) AVAILABILITY OF INJUNCTIVE RELIEF WITHOUT SHOWING

OF KNOWLEDGE.mNotwithstanding any other provision of this

Act, in a civil action under paragraph (1)(A) of this subsection,

the attorney general, official, or agency of the State shall not

be required to allege or prove the state of mind required by

section 5(a)(1)(C), section 5(a)(2), clause (it), (ifi), or (iv) of

section 5(a)(4)(A), section 5(b)(1)(A), or section 5(b)(3).

(3) STATUTORY DAMAGES.--

(A) IN GENERAL.--For purposes of paragraph (1)(B)(ii),

the amount determined under this paragraph is the amount

calculated by multiplying the number of violations (with

each separately addressed unlawful message received by

or addressed to such residents treated as a separate violation) by up to $250.

(B) LIMITATION.--For any violation of section 5 (other

than section 5(a)(1)), the amount determined under

subparagraph (A) may not exceed $2,000,000.

(C) AGGRAVATED DAMAGES.--The court may increase

a damage award to an amount equal to not more than

three times the amount otherwise available under this

paragraph if-

(i) the court detemines that the defendant committed the violation willfully and knowingly; or

(it) the defendant’s unlawfifl activity included one

or more of the aggravating violations set forth in section 5(b).

(D) REDUCTION OF DAMAGES.---In assessing damages

under subparagraph (A), the court may consider whether-

(i) the defendant has established and implemented,

with due care, commercially reasonable practices and

procedures designed to effectively prevent such violations; or

(it) the violation occurred despite commercially

reasonable efforts to maintain compliance the practices

and procedures to which reference is made in clause

(i).

(4) ATTORNEY FEES.--In the case of any successful action

under paragraph (1), the court, in its discretion, may award

the costs of the action and reasonable attorney fees to the

State.

(5) RIGHTS OF FEDERAL REGULATORS.--The State shall serve

prior written notice of any action under paragraph (1) upon

Notice.

Records.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 33 of 42
117 STAT. 2714 PUBLIC LAW 108-187--DEC. 16, 2003

the Federal Trade Commission or the appropriate Federal regulator determined under subsection (b) and provide the Commission or appropriate Federal regulator with a copy of its complaint, except in any case in which such prior notice is not

feasible, in which case the State shall serve such notice immediately upon instituting such action. The Federal Trade

Commission or appropriate Federal regulator shall have the

right--

(A) to intervene in the action;

(B) upon so intervening, to be heard on all matters

arising therein;

(C) to remove the action to the appropriate United

States district court; and

(D) to file petitions for appeal.

(6) CONSTRUCTION.--For purposes of bringing any civil

action under paragraph (1), nothing in this Act shall be construed to prevent an attorney general of a State from exercising

the powers conferred on the attorney general by the laws of

that State to-

(A) conduct investigations;

(B) administer oaths or affirmations; or

(C) compel the attendance of witnesses or the production of documentary and other evidence.

(7) VENUE; SERVICE OF PROCESS.--

(A) VE.NUE.~Any action brought under paragraph (1)

may be brought in the district court of the United States

that meets applicable requirements relating to venue under

section 1391 of title 28, United States Code.

(B) SERVICE OF PROCESS.--In an action brought under

paragraph (1), process may be served in any district in

which the defendant-

(i) is an inhabitant; or

(ii) maintains a physical place of business.

(8) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION

IS PENDING.--~ the Commission, or other appropriate Federal

agency under subsection (b), has instituted a civil action or

an administrative action for violation of this Act, no State

attorney general, or official or agency of a State, may bring

an action under this subsection during the pendency of that

action against any defendant named in the complaint of the

Commission or the other agency for any violation of this Act

alleged in the complaint.

(9) REQUISITE SCIENTER FOR CERTAIN CIVIL ACTIONS.-

Except as provided in section 5(a)(1)(C), section 5(a)(2), clause

(ii), (iii), or (iv) of section 5(a)(4)(A), section 5(b)(1)(A), or section

5(b)(3), in a civil action brought by a State attorney general,

or an official or agency of a State, to recover monetary damages

for a violation of this Act, the court shall not grant the relief

sought unless the attorney general, official, or agency establishes that the defendant acted with actual knowledge, or

knowledge fairly implied on the basis of objective circumstances,

of the act or omission that constitutes the violation.

(g) ACTION BY PROVIDER Of INTERNET ACCESS SERVICE.--

(1) ACTION AUTHORIZED.--A provider of Internet access

service adversely affected by a violation of section 5(a)(1), 5(b),

or 5(d), or a pattern or practice that violates paragraph (2),

(3), (4), or (5) of section 5(a), may bring a civil action in

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 34 of 42
PUBLIC LAW 108-187--DEC. 16, 2003 117 STAT. 2715

any district court of the United States with jurisdiction over

the defendant-

(A) to enjoin further violation by the defendant; or

(B) to recover damages in an amount equal to the

greater

(i) actual monetary loss incurred by the provider

of Internet access service as a result of such violation;

or

(ii) the amount determined under paragraph (3).

(2) SPECIAL DEFINITION OF "PROCURE".--In any action

brought under paragraph (1), this Act shall be applied as if

the definition of the term "procure" in section 3(12) contained,

aider ’%ehalf’ the words "with actual knowledge, or by consciously avoiding knowing, whether such person is engaging,

or will engage, in a pattern or practice that violates this Act".

(3) STATUTORY DAMAGES.--

(A) IN GENERAL.mFor purposes of paragraph (1)(B)(ii),

the amount determined under this paragraph is the amount

calculated by multiplying the number of violations (with

each separately addressed ualawful message that is transmitted or attempted to be transmitted over the facilities

of the provider of Internet access service, or that is transmitted or attempted to be transmitted to an electronic

mail address obtained from the provider of Internet access

service in violation of section 5(b)(1)(A)(i), treated as a

separate violation)

. (.i) up to $100, in the case of a violation of section

5(a)(1); or

(ii) up to $25, in the case of any other violation

of section 5.

(B) LIMITATION.--For any violation of section 5 (other

than section 5(a)(1)), the amount determined under

subparagraph (A) may not exceed $1,000,000.

(C) AGGRAVATED DAMAGES.--The cour~ may increase

a damage award to an amount equal to not more than

three times the amount otherwise available under this

paragraph

(i) the court determines that the defendant committed the violation willfully and knowingly; or

(ii) the defendant’s unlawful activity included one

or more of the aggravated violations set forth in section

5(b).

(D) REDUCTION OF DAMAGES.---In assessing damages

under subparagraph (A), the court may consider whether--

(i) the defendant has established and implemented,

with due care, commercially reasonable practices and

procedures designed to effectively prevent such violations; or

(ii) the violation occurred despite commercially

reasonable efforts to maintain compliance with the

practices and procedures to which reference is made

in clause (i).

(4) ATTORNEY FEES.---In any action brought pursuant to

paragraph (1), the court may, in its discretion, require an

undertaking for the payment of the costs of such action, and

assess reasonable costs, including reasonable attorneys’ fees,

against any party.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 35 of 42
117 STAT. 2716 PUBLIC LAW 108-187--DEC. 16, 2003

15 USC 7707.

15 USC 7708.

Deadline.

Reports.

SEC. 8. EFFECT ON OTHER LAWS.

(a) FEDERAL LAW.--(1) Nothing in this Act shall be construed

to impair the enforcement of section 223 or 231 of the Communications Act of 1934 (47 U.S.C. 223 or 231, respectively), chapter

71 (relating to obscenity) or 110 (relating to sexual exploitation

of children) of title 18, United States Code, or any other Federal

criminal statute.

(2) Nothing in this Act shall be construed, to affect in any

way the Commission’s authority to bring enforcement actions under

FTC Act for materially false or deceptive representations or unfair

practices in commercial electronic ma~l messages.

(b) STATE LAW.--

(1) IN GENERAL.--This Act supersedes any statute, regulation, or rule of a State or political subdivision of a State that

expressly regulates the use of electronic mail to send commercial messages, except to the extent that any such statute,

regulation, or rule prohibits falsity or deception in any portion

of a commercial electronic mail message or information attached

thereto.

(2) STATE LAW NOT SPECIFIC TO ELECTRONIC ~ZL.--This

Act shall not be construed to preempt the applicability of-

(A) State laws that are not specific to electronic mail,

including State trespass, contract, or tor~ law; or

(B) other State laws to the extent that those laws

relate to acts of fraud or computer crime.

(c) No EFFECT ON Poucms OF PROVIDERS OF INTERNET ACCESS

SERVICE.--Nothing in this Act shall be construed to have any effect

on the lawfiflness or unlawfulness, under any other provision of

law, of the adoption, implementation, or enforcement by a provider

of Internet access service of a policy of declining to transmit, route,

relay, handle, or store certain types of electronic mail messages.

SEC. 9. DO-NOT-E-MAIL 11EGISTRY.

(a) IN GENEP~.--Not later than 6 months after the date of

enactment of this Act, the Commission shall transmit to the Senate

Committee on Commerce, Science, and TranspOrtation and the

House of Representatives Committee on Energy and Commerce

a report that--

(1) sets forth a plan and timetable for establishing a nationwide marketing Do-Not-E-Mail registry;

(2) includes an explanation of any practical, technical, secu~

rity, privacy, enforceability, or other concerns that the Commission has regarding such a registry; and

(3) includes an explanation of how the registry would be

applied with respect to children with e-mail accounts.

(b) AUTHORIZATION TO IM:PLElVIENT.--The Commission may

establish and implement the plan, but not earlier than 9 months

after the date of enactment of this Act.

15 USC 7709.

Deadline.

Reports.

SEC. 10. STUDY OF EFFECTS OF COMMERCIAL ELECTRONIC MAIL.

(a) IN GENER~.--Not later than 24 months after the date

of the enactment of this Act, the Commission, in consultation with

the Department of Justice and other appropriate agencies, shall

submit a report to the Congress that provides a detailed analysis

of the effectiveness and enforcement of the provisions of this Act

and the need (if any) for the Congress to modify such provisions.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 36 of 42
PUBLIC LAW 108-187mDEC. 16, 2003 117 STAT. 2717

(b) REQUIRED ANALYSIS. The Commission shall include in the

report required by subsection (a)--

(1) an analysis of the extent to which technological and

marketplace developments, including changes in the nature

of the. devices through which consumers access their electronic

mall messages, may affect the practicality and effectiveness

of the provisions of this Act;

(2) analysis and recommendations concerning how to

address commercial electronic mall that originates in or is

transmitted through or to facilities or computers in other

nations, including initiatives or policy positions that the Federal

Government could pursue through international negotiations,

fora, organizations, or institutions; and

(3) analysis and recommendations concerning options for

protecting consumers, including children, from the receipt and

viewing of commercial electronic mail that is obscene or pornographic.

SEC. 11. IMPROVING ENFORCEMENT BY PROVIDING REWARDS FOR

INFORMATION ABOIYr VIOLATIONS; LABELING.

The Commission shall transmit to the Senate Committee on

Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce-

(l) a report, within 9 months after the date of enactment

of this Act, that sets forth a system for rewarding those who

supply information about violations of this Act, including-

(A) procedures for the Commission to grant a reward

of not less than 20 percent of the total civil penalty collected

for a violation of this Act to the first person that-

(i) identifies the person in violation of this Act;

and

(ii) supplies information that leads to the successfui collection of a civil penalty by the Commission;

and

(B) procedures to minimize the burden of submitting

a complaint to the Commission concerning violations of

this Act, including procedures to allow the electronic

submission of complaints to the Commission; and

(2) a report, within 18 months after the date of enactment

of this Act, that sets forth a plan for requiring commercial

electronic mail to be identifiable from its subject line, by means

of compliance with Internet Engineering Task Force Standards,

the use of the characters "ADV~’ in the subject line, or other

comparable identifier, or an explanation of any concerns the

Commission has that cause the Commission to recommend

against the plan.

SEC. 12. RESTRICTIONS ON OTHER TRANSMISSIONS.

Section 227(b)(1) of the Communications Act of 1934 (47 U.S.C.

227(b)(1)) is amended, in the matter preceding subparagraph (A),

by inserting ", or any person outside the United States if the

recipient is within the United States" after ’~United States".

SEC. 13. REGULATIONS.

(a) IN GENERAL.--The Commission may issue regulations to

implement the provisions of this Act (not including the amendments

made by sections 4 and 12). Any such regulations shall be issued

in accordance with section 553 of title 5, United States Code.

Reports.

Deadlines.

Procedures.

15 USC 7710.

15 USC 7711.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 37 of 42
117 STAT. 2718 PUBLIC LAW108-187mDEC. 16,2003

15 USC 7712.

Deadline.

15 USC 7713.

(b) LIIVfrrATION.--Subsection (a) may not be construed to

authorize the Commission to establish a requirement pursuant

to section 5(a)(5)(A) to include any specific words, characters, marks,

or labels in a commercial electronic mail message, or to include

the identification required by section 5(a)(5)(A) in any particular

part of such a mail message (such as the subject line or body).

SEC. 14. APPLICA~ON TO WIRELESS.

(a) EFFECT ON OTHER LAW.--Nothing in this Act shall be interpreted to preclude or override the applicability of section 227 of

the Communications Act of 1934 (47 U.S.C. 227) or the rules prescribed under section 3 of the Telemarketing and Consumer Fraud

and Abuse Prevention Act (15 U.S.C. 6102).

(b) FCC RULEMAKING.--The Federal Communications Commission, in consultation with the Federal Trade Commission, shall

promulgate rules within 270 days to protect consumers from

unwanted mobile service commercial messages. The Federal

Communications Commission, in promulgating the rules, shall, to

the extent consistent with subsection (c)--

(1) provide subscribers to commercial mobile services the

ability to avoid receiving mobile service commercial messages

unless the subscriber has provided express prior authorization

to the sender, except as provided in paragraph (3);

(2) allow recipients of mobile service commercial messages

to indicate electronically a desire not to receive future mobile

service commercial messages from the sender;

(3) take into consideration, in determining whether to subject providers of commercial mobile services to paragraph (1),

the relationship that exists between providers of such services

and their subscribers, but if the Commission determines that

such providers should not be subject to paragraph (1), the

rules shall require such providers, in addition to complying

with the other provisions of this Act, to allow subscribers to

indicate a desire not to receive future mobile service commercial

messages from the provider~

(A) at the time of subscribing to such service; and

(B) in any billing mechanism; and

(4) determine how a sender of mobile service commercial

messages may comply with the provisions of this Act, considering the unique technical aspects, including the functional

and character limitations, of devices that receive such messages.

(c) OTHER FACTORS CONSIDERED.--The Federal Communications Commission shall consider the ability of a sender of a commercial electronic mail message to reasonably determine that the message is a mobile service commercial message.

(d) MOBILE SERVICE COM2H]~RCIAL MESSAGE DEFINED.--In this

section, the term "mobile service commercial message" means a

commercial electronic mail message that is transmitted directly

to a wireless device that is utilized by a subscriber of commercial

mobile service (as such term is defined in section 332(d) of the

Communications Act of 1934 (47 U.S.C. 332(d))) in connection with

such service.

SEC. 15. SEPARABILITY.

If any provision of this Act or the application thereof to any

person or circumstance is held invalid, the remainder of this Act

and the application of such provision to other persons or circumstances shall not be affected.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 38 of 42
PUBLIC LAW 108-187--DEC. 16, 2003

SEC. 16. EFFECTIVE DATE.

The provisions of this Act, other than section 9, shall take

effect on January 1, 2004.

Approved December 16, 2003.

117 STAT. 2719

15 USC 7701

note.

LEGISLATIVE HISTORY--S. 877:

SENATE REPORTS: No. 108-102 (Comm. on Commerce, Science, and Transportation).

CONGRESSIONAL RECORD, Vol. 149 (2003):

Oct. 22, considered and passed Senate.

Nov. 21, considered and passed House, amended.

Nov. 25, Senate concurred in House amendment with an amendment.

Dec. 8, House conccurred in Senate amendment.

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 39 of 42
ATTESTATION OF CONCURRENCE IN FILING

United States v. Member Source Media LLC and Chris Sommer, No. CV 08-642 (N.D. Cal.)

In accord with the Northern District of California’s General Order No. 45, Section X.(B),

I attest that concurrence in the filing of this document has been obtained from each of the other

signatories who are listed on the signature pages.

In addition, pursuant to the final sentence of Section X.(B) of General Order No. 45, I am

attaching a scanned image of the signature pages, signed by the parties, of the document being

electronically filed, in lieu of maintaining the paper record for subsequent production if required.

Dated: January 30, 2008 /S/ John W. Burke

JOHN W. BURKE (VA Bar No. 72780)

Trial Attorney

Office of Consumer Litigation

U.S. Department of Justice

P.O. Box 386

Washington, DC 20044

(202) 353-2001

Josh.Burke@usdoj.gov

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 40 of 42
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FOR THE PLAINTIFF:

UNITED STATES OF AMERICA:

JEFFREY S. BUCHOLTZ

Acting Assistant Attorney General

Civil Division

U.S. Department of Justice

EUGENE M. THIROLF

Director,

KENNETH L. JOST

Deputy Director,

Office of Consumer L' igation

1

JOHN /W. BURKE (VA. BAR NO. 72780)

Tri Attorney

Office of Consumer Litigation

Civil Division

U.S. Department of Justice

P.O. Box 386

Washington, D.C. 20044

Telephone: 202-353-2001

Facsimile: 202-514-8742

Email: josh.burke@usdoj.gov

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LEIS C. GREISMAN

Associate Director for Marketing Practices

19

20

21

22

STEPHEN L. COHEN

ETHAN ARENSON

Attorneys, Federal Trade Commission

600 Pennsylvania Ave., N.W.

Washington, D.C. 20580

23

24

25

26

27

28

Page 16 of 17

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 41 of 42
Rif e

Ma gers Butler & Marmaro LLP

1900 Avenue of the Stars, 7th Floor

Los Angeles, CA 90067

SO ORDERED this day of , 2007.

United States District Judge

204 East 2nd Avenue, Suite 517

8 San Mateo, CA 94401

Chris Sommer,

Individually and as Manager of Member Source Media LLC

Page 17 of 17

20th February 2008

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

Judge Jeffrey S. White

Case 3:08-cv-00642-JSW Document 7 Filed 02/20/08 Page 42 of 42