15 U.S.C. § 7705: Businesses knowingly…

Summary

It is illegal for someone to use a commercial email that was sent with false or misleading transmission information to promote their business or its goods or services when three things are true: they knew or should have known the promotion was in that email, they got or expected to get money or other gain from it, and they did not try to stop the email or try to find and report it. Other suppliers who simply sell goods or services to that business are usually not responsible. They are responsible only if they own more than 50 percent of the business, or if they actually knew about the illegal email and benefited from it. Only the Federal Trade Commission enforces this rule. Nothing here stops other actions under this law, except as provided in section 7706(f)(8).

Title 15, §7705

Commerce and Trade, Source: USLM XML via OLRC

(a)In general

It is unlawful for a person to promote, or allow the promotion of, that person’s trade or business, or goods, products, property, or services sold, offered for sale, leased or offered for lease, or otherwise made available through that trade or business, in a commercial electronic mail message the transmission of which is in violation of section 7704(a)(1) of this title if that person—

(1)knows, or should have known in the ordinary course of that person’s trade or business, that the goods, products, property, or services sold, offered for sale, leased or offered for lease, or otherwise made available through that trade or business were being promoted in such a message;

(2)received or expected to receive an economic benefit from such promotion; and

(3)took no reasonable action—

(A)to prevent the transmission; or

(B)to detect the transmission and report it to the Commission.

(b)Limited enforcement against third parties

(1)In general

Except as provided in paragraph (2), a person (hereinafter referred to as the “third party”) that provides goods, products, property, or services to another person that violates subsection (a) shall not be held liable for such violation.

(2)Exception

Liability for a violation of subsection (a) shall be imputed to a third party that provides goods, products, property, or services to another person that violates subsection (a) if that third party—

(A)owns, or has a greater than 50 percent ownership or economic interest in, the trade or business of the person that violated subsection (a); or

(B)(i)has actual knowledge that goods, products, property, or services are promoted in a commercial electronic mail message the transmission of which is in violation of section 7704(a)(1) of this title; and

(ii)receives, or expects to receive, an economic benefit from such promotion.

(c)Exclusive enforcement by FTC

Subsections (f) and (g) of section 7706 of this title do not apply to violations of this section.

(d)Savings provision

Except as provided in section 7706(f)(8) of this title, nothing in this section may be construed to limit or prevent any action that may be taken under this chapter with respect to any violation of any other section of this chapter.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (d), was in the original “this Act”, meaning Pub. L. 108–187, Dec. 16, 2003, 117 Stat. 2699, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 7701 of this title and Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 2004, see section 16 of Pub. L. 108–187, set out as a note under section 7701 of this title.

§7705 Businesses Knowingly Promoted by Electronic Mail with False or Misleading Transmission Information