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FTC Reaches Agreement With 'Spam King'

by Glen Shapiro, LawAndTax-News.com, New York

06 January 2005

Ahead of a hearing on the temporary restraining order imposed on him last October, so-called 'Spam King', Sanford Wallace has reached an agreement with the US Federal Trade Commission (FTC) regarding his business practices.

The restraining order, which was issued by Judge Joseph DiClerico in New Hampshire's District Court, was designed to prevent Wallace's two businesses, SmartBot.net Inc. and Seismic Entertainment Productions from spreading spyware programs and then attempting to charge infected users to remove them.

Under the terms of the agreement reached with the FTC, pending a forthcoming federal lawsuit against him, Wallace will only send adverts to internet users who visit his sites.

The conciliatory nature of this action appears to contrast with the 'Spam King's attitude last autumn, when he stated with regard to the legal action being brought against him that:

"We feel this is a political move and it is being made at the expense of legal business operations...We deny any wrongdoings and plan to pursue all legal protections, remedies and freedoms."

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