FTC Levies Largest Fine Yet for Can-Spam Act Violations

SAN FRANCISCO — In the largest penalty yet for illegal spam, Jumpstart Technologies has agreed in a consent decree to pay a $900,000 civil penalty for violating the Can-Spam Act.

With the penalty, the Federal Trade Commission said it is ramping up fines for Internet marketers – adult and mainstream – now that the Can-Spam (Controlling the Assault of Non-Solicited Pornography and Marketing) Act has been on the books for several years.

“The trend is aggressive fines,” FTC spokeswoman Linda K. Badger told XBiz. “We’re trying to take the pockets out of companies that violate Can-Spam. This company will be able to afford the fine without going out of business. The fines have to hurt.”

The FTC said Jumpstart was fined for its FreeFlixTix promotion, which served as a vehicle to provide direct marketing opportunities to online advertising partners and to collect marketing data to sell to third parties.

Jumpstart operates numerous companies, including Bonus Bonez, Harding Innovations, Infinity Brands and Launchpad Services. It also operates such sites as CrushLink.com and SomeoneLikesYou.com.

The San Francisco-based company is operated by Greg Tseng, according to the California Secretary of State in its LLC filing.

The FTC’s complaint alleged that Jumpstart offered free movie tickets to consumers in exchange for the names and email addresses of five or more of their friends. Jumpstart then sent them commercial emails with the consumer’s email address in the “from” line and a seemingly personal “subject line,” such as, “Hey,” “Happy Valentine’s Day,” “Happy New Year,” “Movie time. Let’s go,” or “Invite.”

Jumpstart also made it look as though the consumer had written the message text, Badger said. With this method, Jumpstart’s emails circumvented spam filters and were opened by consumers who thought they contained personal correspondence.

“The company sent it purposefully and they devised this technique to lure you or your friends,” Badger said. “It intentionally used personal messages as a cover-up for commercial messages.”

With the negotiated fine, Jumpstart also is permanently prohibited from its unlawful practices, according to a consent decree signed by the company.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

European Commission to Assess Pornhub, XVideos, XNXX Compliance With Digital Services Act

The European Commission plans to conduct a study to determine how well adult sites Pornhub, XVideos and XNXX are addressing illegal content and other potential harms under the EU’s Digital Services Act.

German Higher Court Upholds Ban on PornHub, YouPorn

The Higher Administrative Court of Rhineland-Palatinate on Thursday upheld a “network ban” on Aylo-owned adult sites Pornhub and YouPorn for failing to comply with German age verification regulations.

Alabama Notifying Adult Sites of New Tax Set to Take Effect Sept. 1

The Alabama Department of Revenue has begun sending notices to adult site operators about a new 10% tax on their revenues, set to be enforced starting Sept. 1.

Ondato, CCBill Announce Strategic Partnership for Global High-Risk Market

Age and identity verification firm Ondato and payment processor CCBill have formed a strategic partnership to serve the global high-risk market.

Ofcom Investigates 4 More Adult Companies for OSA Compliance

U.K. media regulator Ofcom has launched investigations into whether four companies operating adult websites have implemented requisite age assurance measures under the Online Safety Act, the agency announced Thursday.

Taylor Nicole Launches New Site Through YourPaysitePartner

Creator Taylor Nicole has launched her new official website through YourPaysitePartner (YPP).

Adult Networking Platform SpicyGigs.com Launches

SpicyGigs, a new adult industry networking platform, has officially launched.

Pineapple Support to Host 'Cream Pie Challenge' Fundraiser

Pineapple Support is hosting its Cream Pie Challenge through August to raise funds for mental health services for industry performers.

Kyrgyzstan President Signs Measure Outlawing Internet Porn

President Sadyr Japarov of Kyrgyzstan on Tuesday signed into law legislation outlawing online adult content in the country.

NC Legislature Overrides Veto of Extreme Anti-Adult Industry Bill

The North Carolina state legislature on Tuesday voted to override Gov. Josh Stein’s veto of a bill imposing regulations that industry observers have warned could push adult websites and platforms to ban most creators and content.

Show More