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Volume 14, Number 1 · January 2004

Tired of "Spam"?

Unwanted e-mail is flooding the Internet. For many, these messages exceed the legitimate traffic. The derisive term, "spam" has been attached to these unsolicited contacts.

Some of the statistics are mind-boggling. Recent studies number spam messages- at 2 trillion for 2003, eclipsing the number of pieces of U. S. mail 1 00 times over. AOL and MSN report 80% of all e-mail is spam.

The cost of handling and receiving spam is measured in the millions, but the loss in productivity has been put at $8.9 billion. Anti-spam programs cost $652 million now, will rise to $2.4 billion by 2007. Corporate America views the spam deluge as a serious threat. The cost to Internet service providers (who must process the spam) is growing exponentially. One notorious "spammer" sent more than 825 million spam messages through Earthlink.

Both industry and individuals are beginning to fight back. Microsoft has sued 15 alleged spammers in Washington State. AOL reports it blocks some 2.4 million spams per day. A recent poll showed individual adult Internet users overwhelmingly favor legislative action to reduce spam.

The United Kingdom and Australia have passed legislation to curb spam. While the U.S. Government has not, 36 states have attempted to restrict spam. The California plan has received much attention.

The California statute takes an "opt-in" approach. Unless the recipient has invited or approved the spam, it is per se illegal. In operation, any individual or entity conducting business in California may not send unsolicited advertising by e-mail unless the sender has previously established and maintained a toll-free telephone number or e-mail address that a recipient may contact to be excluded. Only recipients with a "pre-existing or current business relationship" (evidenced by an inquiry, order, application, etc.) are fair game.

Advertisers in violation of the law, whether dealing from or into California are " fineable and attachable." The recipient, server provider, or California's Attorney General are authorized to invoke the law. Damages can reach $1,000 per message, $1,000,000 per incident and may carry attorney's fees and costs.

But the final score is not yet in. Constitutional objections under First Amendment "Freedom of Speech" and the Interstate Commerce protections will undoubtedly be mounted. Virginia's anti-spam legislation provides criminal penalties and can lead to forfeiture of assets. These are heavy penalties and advertisers can be expected to challenge them.

As in many phases of our fast-paced society, it will pay to watch and wait future developments. Of one thing we can be sure, spam is growing so fast that unless harnessed, it will run away with us.



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