Settlements prove that spam laws have teeth

Federal and state laws enacted to limit spam generally have been viewed as the wobbly leg of the three-component anti-spam approach that includes technology and education. However, recent successes in the legal world, combined with hints that spam volumes may finally be on the decline, suggest the federal CAN-SPAM law and its state-level counterparts may be having some effect.

Microsoft last week announced a $7 million settlement with Scott Richter , the self-proclaimed "Spam King" - so proud of his occupation that he launched a clothing line under that moniker - and his company Optinrealbig.com. The case was filed in December 2003 under Washington state law, because the federal CAN-SPAM law had not yet passed, and represents the largest settlement Microsoft has had among its 106 civil cases against spammers.

The software giant was able to bring this case against Richter because of Microsoft's status as an ISP. While Richter hasn't suffered a criminal conviction, Microsoft says the high-priced settlement will deter other spammers.

"This settlement sends a message to spammers and would-be spammers to think twice," says Aaron Kornblum, Microsoft's Internet safety and enforcement attorney.

"There are companies and government agencies actively identifying, pursuing and prosecuting people who send illegal e-mail," he says. Microsoft plans to use the majority of the $7 million to further its efforts against computer crime.

AOL anti-spam sweepstakes

Meanwhile, AOL last week drew attention to its anti-spam legal efforts by offering to share with its users the confiscated property of a spammer the company helped bring down. AOL announced a sweepstakes in which it will give away close to $100,000 in cash and gold bars and a fully loaded Hummer , all taken from a New Hampshire spammer who settled with AOL earlier this year. Also last week, AOL won a $13 million settlement from other members of the same spam gang.

The sweepstakes, devised to thank AOL members for doing their part by reporting to the company the spam they receive, also "serves as a message to anyone thinking of making a living sending spam to AOL members: AOL will find you and sue you," a company statement says.

While such high-profile legal activity won't stop all hard-core spammers, the consequences highlighted by these events are helping to keep e-mailers in line, says John Kraden, staff attorney with the Federal Trade Commission's Bureau of Consumer Protection. "While there still is a lot of spam being sent out there, we see legitimate companies are complying with CAN-SPAM," Kraden says.

Richter's Optinrealbig.com has not been shut down, but continues to operate by adhering to rules outlined in CAN-SPAM, including offering an "opt-out" button that works and not falsifying e-mail header or sender information.

But laws are not enough

Despite a few high-profile settlements, CAN-SPAM and other laws are not having the desired effect on curtailing unwanted e-mail, says Paul Hoffman, director of the Internet Mail Consortium. "One or two [spammers] are going to go out of business - big deal," he says. "We have not seen the amount of spam go down, and we haven't seen any indication that there are fewer people seeing spam. Those are the only two measures I know of that determine whether a law works, fewer victims or fewer perpetrators."