Bob Vila’s remodeling site gets nailed for CAN-SPAM violations.

Bob Vila can build anything -- but apparently he can’t send email.

The operator of the home improvement guru’s Website last week became the nation's first target of the new federal anti-spam law, according to attorney John L. Fallat.

Fallat filed a lawsuit in federal court on behalf of Foster City, Ca.-based Internet service provider Hypertouch, Inc. It alleges Sacramento-based BlueStream Media and Boston-based BVWebTies LLC, owner of BobVila.com, violated the Federal CAN-SPAM act by sending Hypertouch and its customers unwanted and unsolicited electronic mail advertisements for Bob Vila's "Home Again Newsletter."

"The CAN-SPAM Act provides only the most minimal protections to the public," says Hypertouch president and founder Joe Wagner. "But BobVila.com and BlueStream Media failed to observe even those."

The suit alleges that the defendants sent spam email advertisements with fraudulent headers and no legally required physical address. They also sent email to randomly generated and harvested addresses, even to addresses that had been submitted to the opt-out links of other spam.

"Most Internet service providers (ISPs) advise their customers to never reply to a spam in an attempt to 'opt-out' because that will only confirm for the spammer that an email address is 'live,'" says Wagner. "BobVila.com and BlueStream Media's actions graphically show how harmful the CAN-SPAM Act is by requiring recipients to reply to the spam they receive."

Attorney Fallat admits this case is a message to other would-be spammers and the companies that hire them. "While ultimately we feel that the CAN-SPAM is an open license to spam with very little protection for the public, we will zealously use what few protections are available to punish unrepentant spammers," he says.

And, indeed, many more suits may be yet to come. A nationwide study conducted by Interland -- a provider of Web hosting and online services for small and medium-sized businesses -- released last Thursday reveals a huge lack of understanding of CAN-SPAM among small businesses.

According to the survey, which was conducted in February among small businesses already online, the majority (62 percent) have either not heard of CAN-SPAM or are unaware of how the Act affects their business. Yet the same respondents showed heavy dependence on email communications. Among small business owners:

• 85 percent communicate with existing customers via email 
• 80 percent communicate with their partners and business associates via email 
• 67 percent communicate with potential buyers via email. 

“Companies caught unaware of the new law but engaged in email marketing could be in for an expensive lesson,” says Jonathan Wilson, vice president and general counsel at Interland. “The CAN-SPAM Act creates very specific requirements for commercial emails, including both civil and criminal penalties for violations. We have recently seen a flurry of litigation surrounding unauthorized downloading of music from peer-to-peer networks, and it is very likely that, sooner or later, unaware small businesses are going to feel the power of this new anti-spam law in a similar way.”

Kim T. Gordon, president of National Marketing Federation, Inc., says, “As technology evolves and small businesses have access to more communications options, it is critical that they are aware of any legislation or guidelines that regulate how they communicate with their customers, prospects and business associates. Savvy small businesses will educate themselves on the act’s requirements and adopt best practices to ensure their compliance. Those that don’t could be putting their businesses at risk.”

To learn more about CAN-SPAM, please see CAN-SPAM Changes Email List Rentals.

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