A large online advertiser that drove traffic to its Web sites through alleged spam e-mails with misleading subject lines has settled Federal Trade Commission charges that it failed to tell consumers they must spend money to receive the so-called “free” gifts it offers.
The settlement, filed by the Department of Justice on behalf of the FTC, requires Adteractive Inc., doing business as FreeGiftWorld.com, to disclose the costs and obligations to qualify for the advertised “gifts,” and bars it from sending e-mail that violates the CAN-SPAM Act, according to the FTC.
The settlement also requires the San Francisco-based company to pay $650,000 in civil penalties.
According to the FTC, Adteractive, Inc., doing business as FreeGiftWorld.com and SamplePromotionsGroup.com, used deceptive spam and online advertising to lure consumers to its Web sites.
For example, Adteractive used e-mail subject lines such as, “Test and keep this Flat-Screen TV,” “Test it
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