Friday, January 11th, 2008
You may have seen in the news recently a case from the Federal Trade Commission, where they charged an online lead generation company, Adteractive with violations of the CAN-SPAM act because the company failed to disclose to consumers that their apparently “free” promotions actually required the consumer to incur a cost. The company settled with the FTC and agreed to pay a civic penalty of $650,000, as well as have the FTC monitor their activities.
The significance of this case is clear when you consider the subject lines and content found in advertising emails. One of the main provisions of the CAN-SPAM act prohibits “deceptive subject lines”, or in other words, the subject line cannot mislead the recipient about the contents or subject matter of the message. In the case of Adteractive, because the subject lines of their email messages implied that the reader had won a contest, or were specially selected for a promotion, the company failed to clearly and conspicuously disclose that the recipient would incur expenses by participating in the program.
As this is the first case of its kind from the FTC, this serves as a signal to marketers that they may be liable for “deceptiveness in advertising”, depending on the subject lines and content of their messages. Here are just a few examples of advertising categories and deceptive subject lines that could raise red flags:




