Photo Courtesy of Associated Press Images (Photographer Lucy Pemoni (c) 2004)
ValueClick, Inc., an online advertising company, has settled for $2.9 million with the U.S. Federal Trade Commission in what is the largest claim against an online advertiser since the CAN-SPAM act was passed in 2003. The act limits advertising from making deceptive claims when delivered through e-mail.
The company sent e-mails promising “free gifts” to attract users to websites, at which point the user would have to opt-in for satellite television or other services to receive any kind of gift. The FTC has also found ValueClick’s management of user data problematic. Along with the monetary settlement the company is taking an approach to mitigate and remedy problems with their ad formats and technology, and minimize fallout for the company. Nevertheless, a small dip in stock price occurred following news of the settlement.
Post by Gabriel Kassel
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