Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-06611/USCOURTS-cand-4_06-cv-06611-0/pdf.json

Parties Involved:
@Once Corporation
Defendant
United States of America
Plaintiff
Yesmail, Inc.
Defendant

Document Text:

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Final Order, C-06-6611 SBA Page 1 of 17

PETER D. KEISLER

Assistant Attorney General

EUGENE M. THIROLF

Director, Office of Consumer Litigation

ELIZABETH STEIN (VA Bar No. 15288)

Attorney, Office of Consumer Litigation

Civil Division

United States Department of Justice

950 Pennsylvania Ave., NW

Washington, D.C. 20530

Telephone: 202-307-0066

Facsimile: 202-514-8742

Email: Elizabeth.Stein2@usdoj.gov

Attorneys for Plaintiff United States of America

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA

Plaintiff,

v.

YESMAIL, INC, d/b/a @ONCE

CORPORATION, a Delaware

corporation,

Defendant.

Civ. No. C-06-6611

STIPULATED FINAL ORDER

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

Case 4:06-cv-06611-SBA Document 6 Filed 02/09/07 Page 1 of 17
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Final Order, C-06-6611 SBA Page 2 of 17

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

Sections 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

Defendant’s violations of Section 5(a) of CAN-SPAM, 15 U.S.C.

§ 7704(a). Defendant has 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 Defendant 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.

Case 4:06-cv-06611-SBA Document 6 Filed 02/09/07 Page 2 of 17
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Final Order, C-06-6611 SBA Page 3 of 17

2. Plaintiff and Defendant consent to jurisdiction and

venue in this District.

3. The activities of Defendant 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 Defendant under Section 5(a) of the CAN-SPAM 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. Defendant has entered into the stipulated Judgment and

Order for Permanent Injunction (“Order”) freely and without

coercion. 

6. Defendant hereby waives all rights to appeal or

otherwise challenge or contest the validity of this Order.

7. Defendant agrees that this Order does not entitle

Defendant to seek or to obtain attorneys’ fees as a prevailing

party under the Equal Access to Justice Act, 28 U.S.C. § 2412,

and Defendant further waives any rights to attorneys’ fees that

may arise under said provision of law.

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

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Final Order, C-06-6611 SBA Page 4 of 17

DEFINITIONS

For the purpose of this Order, the following definitions

shall apply:

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

any electronic mail 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 et seq, as it exist now and may be amended.

2. Unless otherwise specified, “Defendant” means Yesmail,

Inc., d/b/a @Once Corporation, and its successors,

assigns, affiliates, or subsidiaries.

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

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Final Order, C-06-6611 SBA Page 5 of 17

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 electronic mail message can be sent or

delivered.

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

sent to a unique electronic mail address.

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

electronic mail 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. “Person” means a natural person or a corporation,

partnership, proprietorship, limited liability company,

or other organization or legal entity, including an

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Final Order, C-06-6611 SBA Page 6 of 17

association, cooperative, or agency, or other group or

combination acting as an entity.

8. “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 behalf. 

9. “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

mail message sent or delivered to that address before

it was reassigned.

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Final Order, C-06-6611 SBA Page 7 of 17

10. “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.

ORDER

I. PROHIBITION AGAINST VIOLATING THE CAN-SPAM ACT

IT IS THEREFORE ORDERED that Defendant and those persons in

active concert or participation with it 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 Appendix A,

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

initiating the transmission of a commercial email message that:

A. Does not contain a functioning return email 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 email message or other form of Internet-based

communication requesting not to receive future

commercial email messages from that sender at the email

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Final Order, C-06-6611 SBA Page 8 of 17

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. Does not include clear and conspicuous notice of the

opportunity to decline to receive further commercial

email from the sender; and

C. Is sent to a recipient’s email address more than ten

business days after the sender or the person who

initiated such a message receives a request from that

recipient not to receive future commercial email

messages from the sender at the recipient’s email

address.

II. CIVIL PENALTIES

IT IS FURTHER ORDERED that Defendant 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

$50,717 as follows: 

A. Defendant 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

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Final Order, C-06-6611 SBA Page 9 of 17

provided by the Office of Consumer Litigation, Civil

Division, U.S. Department of Justice, Washington, D.C.

20530, for appropriate disposition; and

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

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.

III. COMPLIANCE REPORTING BY DEFENDANT

IT IS FURTHER ORDERED that, in order that compliance with

the provisions of this Order may be monitored:

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

of this Order, Defendant 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 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

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Final Order, C-06-6611 SBA Page 10 of 17

corporate name or address, at least seven (7) days

prior to such change, provided that, with respect to

any proposed change in the corporation about which

Defendant learns less than seven (7) days prior to the

date such action is to take place, Defendant 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, Defendant shall provide a written report

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

forth in detail the manner and form in which it has

complied and is complying with this Order. This report

shall include, but not be limited to:

1. A copy of each acknowledgment of receipt of this

Order, obtained pursuant to Section V of this

Order; and

2. Any changes required to be reported pursuant to

subsection A of this Section;

C. For the purposes of this Order, Defendant shall, unless

otherwise directed in writing by the Commission’s

authorized representatives, mail all written

notifications to the Commission to:

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Final Order, C-06-6611 SBA Page 11 of 17

Associate Director for the 

Division of Enforcement

Federal Trade Commission

601 New Jersey Avenue, N.W.

Washington, D.C. 20580

Re: United States v. Yesmail, Inc.

Civ. No. ______

D. For the purposes of this Order, Defendant 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# 102-3371, and mail them to:

Director, Office of Consumer Litigation

U.S. Department of Justice - Civil Division

P.O. Box 386

Washington, D.C. 20044

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 Defendant’s officers.

IV. RECORD KEEPING PROVISIONS 

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

from the date of entry of this Order, Defendant is hereby

restrained and enjoined from failing to create and retain the

following records in connection with the marketing, advertising,

promotion, offering for sale, or sale of goods or services, via

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Final Order, C-06-6611 SBA Page 12 of 17

commercial email messages, and from failing to make such records

(or reports concerning such records) available for inspection and

copying within ten (10) days of receipt of a written request from

a representative of Plaintiff or Commission: 

A. Standard accounting records generated in the ordinary

course of business including, but not limited to,

balance sheets, income statements, and annual reports;

B. Records accurately reflecting during their employment: 

the name, physical address, and telephone number of

each person employed by Defendant, including as an

independent contractor, with responsibilities relating

to compliance with this Order; 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. Records that reflect, for every written or oral

consumer complaint received by Defendant relating to

the activities of promoting goods and services via

commercial email messages, whether directly or

indirectly or through any third party, (1) the name,

address, and telephone number provided by the

complaining consumer; (2) the written complaint or

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Final Order, C-06-6611 SBA Page 13 of 17

request, if any; (3) the basis of the complaint or

request if known; (4) the nature and result of any

investigation conducted concerning the complaint or

request;(5) each response and the date of such response

to the complaint or request; (6) any final resolution

of the complaint or request, and the date of such

resolution; and (7) in the event of a denial of any

resolution, the reason for the denial; and

D. All other records and documents reasonably necessary to

demonstrate full compliance with each provision of this

Order, including but not limited to, all documents

obtained, created, generated or which in any way relate

to the requirements, provisions, or terms of this

Order, copies of signed and dated acknowledgments of

receipt of this Order, and all reports submitted to the

FTC pursuant to this Order.

V. DISTRIBUTION OF ORDER BY DEFENDANT

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

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

copies of this Order as directed below:

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Final Order, C-06-6611 SBA Page 14 of 17

A. Defendant must deliver a copy of this Order to all its

officers, directors, and managers. Defendant must also

deliver a copy of this Order to all its employees,

agents, independent contractors, and persons who engage

in conduct related to the subject matter of this Order. 

For current personnel, delivery shall be within five

(5) days of service of this Order. For new personnel,

delivery shall occur prior to their assuming their

responsibilities; and 

B. Defendant must secure a signed and dated statement

acknowledging receipt of this Order, within thirty (30)

days of delivery, from all persons receiving a copy or

summary of this Order pursuant to this Part.

VI. ACKNOWLEDGMENT OF RECEIPT OF ORDER BY DEFENDANT

IT IS FURTHER ORDERED that 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. 

VII. 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.

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Final Order, C-06-6611 SBA Page 15 of 17

VIII. 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.

IX. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court shall retain

jurisdiction of this matter for purposes of construction,

modification, and enforcement of this Order.

X. 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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Final Order, C-06-6611 SBA Page 16 of 17

FOR THE PLAINTIFF:

UNITED STATES OF AMERICA:

PETER D. KEISLER

Assistant Attorney General

EUGENE M. THIROLF

Director, Office of Consumer Litigation

 /S/ Elizabeth Stein 

ELIZABETH STEIN

Attorney, Office of Consumer Litigation

Civil Division

United States Department of Justice

950 Pennsylvania Ave., NW

Washington, D.C. 20530

Telephone: 202-307-0066

Facsimile: 202-514-8742

Email: Elizabeth.Stein2@usdoj.gov

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Final Order, C-06-6611 SBA Page 17 of 17

FOR THE FEDERAL TRADE COMMISSION

 /S/ Lois C. Greisman 

LOIS C. GREISMAN

Associate Director for Marketing Practices

 /S/ Karen S. Hobbs 

Karen S. Hobbs

Attorney, Federal Trade Commission

600 Pennsylvania Ave., N.W.

Washington, D.C. 20580

FOR THE DEFENDANT:

 /S/ Trent J. Martinet 

Trent J. Martinet

Erickson & Sederstrom, P.C.

One Regency Westpointe

10330 Regency Parkway Drive

Omaha, NE 68114

 /S/ Fred Vakili 

Yesmail, Inc., d/b/a @Once Corporation

Fred Vakili, President

959 Skyway Road

Suite 150

San Carlos, California 94070

SO ORDERED this 9TH day of February, 2007.

____________________________

United States District Judge

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