Legal News

CAN-SPAM can supersede, says judge

By Richard Binder

A Los Angeles judge, ruling on a case of first impression, has found that the federal CAN-SPAM Act preempts a California law designed to curb false and misleading commercial emails.

The case was filed in Los Angeles Superior Court against ValueClick Inc., which manages online and e-mail advertising for clients including Wells Fargo & Co. and The Walt Disney Co. The plaintiff, Hypertouch Inc., an Internet service provider in Menlo Park, Calif., alleged that its end users received 45,000 misleading emails from ValueClick in violation of a California's Business & Professions Code section that provides $1,000 in damages per e-mail ? the most aggressive statute of its kind in the nation.

The May 4 ruling, which throws out a case claiming $45 million in damages, is the first to address the pre-emption issue in California's state courts and could stymie future suits filed under the statute.

Full story at NLJ.com.

Full post as published by Legal Pad | LA on May 07, 2009 (boomark / email).