New York State filed suit against bulk e-mailer MonsterHut
yesterday, alleging that the company spammed consumers with 500
million e-mails.
Under New York state law, the company could be fined $500 for each
violation. However, attorney general spokesman Brad Mione said no
monetary damages have been specified in the suit.
"We are seeking to prevent MonsterHut from continuing its
fraudulent, deceptive and illegal practices, not just over
[Internet service provider] PaeTec's network, but over any ISP in
New York," attorney general Eliot Spitzer said in a statement.
Spitzer charged that MonsterHut chief executive officer Todd Pelow
and chief technology officer Gary Hartl falsely advertised their
e-mail services as opt-in, or permission-based, meaning that
consumers gave the company permission to send them e-mails. Spitzer
said only a portion of the company's e-mail customers actually gave
that permission.
In addition, 750,000 people have asked to be removed from
MonsterHut's e-mail lists; the total number of consumers on
MonsterHut's lists was not specified. Part of what Spitzer wants
from the company is a detailed explanation of how and where it
obtained its e-mail lists.
MonsterHut officials were unavailable for comment
The suit adds to the company's legal difficulties. On May 6,
MonsterHut's ISP, PaeTec Communications, won the right to
disconnect MonsterHut. PaeTec had been barred from disconnecting
MonsterHut for 13 months by an injunction from a lower court.
No trial date has been set, and the two parties are expected to
enter negotiations aimed at reaching a settlement soon.