penaties, per - Hypertouch® Inc.
Transcription
penaties, per - Hypertouch® Inc.
Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 1 of 30 PageID #:31 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 1 of 34 FILED 1 ~HOMAS P. 0' BRIEN ?n~p.~~~n i3 P1'12:~3 United States Attorney 2 LEE WEIDMA . ... ~;' :' 1-. _.; ~.;: T ~ssistant United States Attorney 3 Chief, Civil Division GARY PLESSMAN 4 ~ssistant United States Attorney Chief, Civil Fraud Section 5 Çalifornia State Bar No. 101233 Room 7516, Federal Building ( (" _,-, ~ l~ L. '~; .' -~. , ---,._-~---- 6 300 North Los Angeles Street Los Angeles, California, 90012 7 Telephone: (213) 894-2474 Facsimile: (213) 894-2380 8 Email: gary .plessman@usdoj . gov 9 ~ttorneys for Plaintiff United States of America 10 UNITE STATES DISTRCT COURT CEN DISTRCT OF CAIFORNIA 11 12 UNITED STATES OF AMCA, 13 14 15 - . C V 0 8 - 0 1 7 1 1M Pw~ ~ (niX) Case No. Plai.ntiff, v. COMLANT FOR CIVL PENATIES, PER VAUECLICK, INC., 16 HI-SPEED MEDIA, INC., and E-BAYLN, INC., 17 INJUCTION, AN OTHE EQUITABLE RELIEF Defendats. 18 19 Plaintiff, the United States of America, acting upon 20 notification and authorization to the Attorney General by the 21 lFederal Trade Commission ("FTC" or "Commission"), pursuant to 22 ¡Section 16(a) (1) of the Federal Trade Commission Act ("FTC Act"), 23 ~5 U.S.C. § 56(a) (1), for its complaint alleges: 24 1. Plaintiff brings this action under Sections 5 (a) , 25 5 (m) (1) (A), 13 (b), 16 (a) and 19 of the FTC Act, 15 U.S.C. 26 ~§ 45 (a), 45 (m) (1) (A), 53 (b), 56 (a), and 57b, and under Section 27 r (a) of the Controlling the Assault of Non-Solicited Pornography 28 and Marketing Act of 2003 ("CAN-SPAM" or the "CAN-SPAM Act"), Complaint Page i of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 2 of 30 PageID #:32 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 2 of 34 15 U.S.C. § 7706(a), to obtain monetary civil penalties, a permanent injunction, and other equitable relief for defendants' 1 2 3 violations of Section Sea) of the FTC Act, 15 u.s.c. § 45(a), and Section 5(a) of CAN-SPAM, 15 U.S.C. § 7704 (a). JUSDICTION AN VE 4 5 2. This Court has subject matter jurisdiction over this 6 matter pursuant to 28 U. S. C. §§ 1331, 1337 (a), 1345, and 1355 and 15 U.S.C. §§ 45(m)(1)(A), 53(b), 56(a) and 57b. This action 7 arises under 15 U.S.C. §§ 45(a) and 7706(a). 8 9 10 3. Venue is proper in this District under 28 U. S. C. §§ 1391(b) and (c), 1395(a), and 15 U.S.C. § 53(b). DEFEANS 11 12 4. Defendant ValueClick, Inc. ("ValueClick") is a Delaware corporation with its principal office or place of business at 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30699 Russell Ranch Road, Suite 250, Westlake Village, CA 91361. ValueClick resides in the Central District of California and transacts business within this District and throughout the United States. ValueClick directs, formulates and controls the practice of, and shares common officership with, the other named Defendants, which are wholly-owned subsidiaries of ValueClick. 5. Defendant Hi-Speed Media, Inc. ("Hi-Speed Media") is a California corporation with its principal office or place of business at 30699 Russell Ranch Road, Suite 250, Westlake Village, CA 91361. Hi-Speed Media resides in the Central District of California and transacts business within this District and throughout the United States. 6. Defendant E-Babylon, Inc. ("E-Babylon") is a California corporation with its principal office or place of business at 30699 Russell Ranch Road, Suite 250, Westlake Village, CA 91361. Complaint Page 2 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 3 of 30 PageID #:33 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 3 of 34 E-Babylon resides in the Central District of California and 1 2 3 4 5 6 7 8 9 10 11 12 13 transacts States. 7. business business within this District and throughout the United Defendant ValueClick operates its lead generation through its wholly-owned subsidiary Hi -Speed Media. Lea generation is the process by which ValueClick connects consumers to advertisers seeking to sell goods or services. operates or controls, either directly or through other subsidiaries, a variety of websi tes including GenerousGenie. com and Gi veAwayCafe. com. 16 17 18 19 20 21 22 23 24 25 26 27 28 Defendant ValueClick also operates under the names ValueClick Media and PriceRunner USA. 8. .Since July 2004, Defendants have formulated, directed, controlled, or participated in the acts and practices set forth i this complaint. DEFINITIONS 14 15 Hi -Speed Media 9. "Electronic mail message" (or "eml") means a messag sent to a unique email address. 15 U.S.C. § 7702(6). 10. "Electronic mail address" means a destination, commonl expressed as a string of characters, consisting of a unique use name or mailbox (coIIonly referred to as the "local part") and reference to an Internet domain (commonly referred to as the "domai part"), whether or not displayed, to which an email message can b sent or delivered. 15 U.S.C. § 7702 (5) . 11. "Comercial electronic mal message" means any email message the primary purpose of which is the cOIIercial advertise~ent or promotion of a commercial product or service (including the content on an Internet website operated for cOIIercial purposes). 15 U.S.C. § 7702(2). 12. "Initiate," when used with respect to a commercial emai Complaint Page 3 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 4 of 30 PageID #:34 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 4 of 34 message, means to originate or transmit such message or to procur the origination or transmission of such message. 15 U. S. C 1 2 3 4 § 7702 (9). 13. "Lading page" means, in online marketing, a specific we page that a visitor reaches after clicking a link or advertisement This page usually showcases content that is an extension of the lin 5 6 7 8 9 10 or ad. 14. "Procure, U when used with respect to the initiation of commercial email message, means intentionally to payor provid other consideration to, or induce, another person to initiate suc a message on one's behalf. 15 U.S.C. § 7702(12). 15. _"Protected computer" means a computer which is used i 11 12 13 14 15 16 17 18 interstate or foreign commerce or communication, including computer located outside the United States that is used in a manne that affects interstate or foreign commerce or communication of th United States. 15 U.S.C. § 7702(13); 18 U.S.C. § 1030(e) (2) (B). 16. "Senderu means a person who initiates a commercial emai message and whose product, service, or Internet website is advertised or promoted by the message. 15 U. S. C. § 7702 (16) . DEFEANS VAUECLICK'S AN HI-SPEED MEIA'S 19 MATING PRACTICES 20 21 22 23 24 25 26 27 28 17. Since January 2005, and continuing to the present, Defendants ValueClick and Hi-Speed Media (hereinafter, "the lead generation Defendants"), in connection with promotions and advertisements on their websi tes, have offered consumers purportedly free merchandise, such as iPods, laptop computers, an Visa gift cards. 18. The lead generation Defendants advertise and market their offers through email and Web-based ads. The lead generatio Complaint Page 4 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 5 of 30 PageID #:35 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 5 of 34 Defendants' emails contain subject lines such as: "Free PS3 for survey"; "let us buy you a 42 inch plasma tv! Just type in your 2 3 4 zip code"; "we're gi ving away a Visa gift card pending participation in our presidential survey"; and "Free Apple iPhone for Daniel." The lead generation Defendants' Web-based ads contain similar representations: "CONGRATULATIONS! Select your 5 6 7 8 9 10 FREE Plasma TV." (Such products and items are referred to herein as "promised free merchandise.") 19. Many of the lead generation Defendants' emails and Webbased ads represent, expressly or by implication, that the consumer viewing the message has won a contest, or has been specially.selected to receive a gift or prize. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20. The lead generation Defendants' emails and Web-based ad contain links that, when clicked on, take one to a "landing page" operated by the lead generation Defendants or their affiliates. Each landing page recapitulates and expands upon the lead generation Defendants' initial promised free merchandise offer. 21. The lead generation Defendants do not clearly and conspicuously disclose that to obtain the promised free merchandise one must incur expenses or other obligations. A consumer must accept (and often pay for) - in the lead generation Defendants' parlance, "complete" or "participate in" - a certain number of goods or services promoted by third-parties to qualify for the promised free merchandise that the lead generation Defendants promote in their emails and Web-based ads. Moreover, the lead generation Defendants do not clearly and conspicuously disclose the costs and obligations associated with participating in third-party promotions, such as applying and qualifying for credi t cards or automobile loans. Complaint Page 5 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 6 of 30 PageID #:36 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 6 of 34 22. On each landing page, the lead generation Defendants request the consumer to enter his or her email address, followed 2 by his or her name and mailing address. Once the consumer has submitted his or her personal information, the lead generation 3 4 5 6 7 8 9 10 Defendants lead the consumer through a series of web pages containing advertisements for various goods and services from third parties. Unbeknownst to the consumer, this is only an introductory tier of "optional" advertisements and offers, after which are three additional tiers of offers that the consumer will have to navigate before he or she can qualify for the promised free merchandise. "Optional" offers do not qualify the consumer for the p~omised free merchandise. 11 12 23. After the consumer navigates the lead generation Defendants' "optional promotions" - often so multitudinous as to 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 take up scores of consecutive computer screens, each with multipl offers - he or she eventually reaches a link that, when clicked, takes the consumer to the first of three tiers of offers in which the consumer must participate to obtain the promised free merchandise. 24. The lead generation Defendants group the tiers of offer that qualify the consumer for the promised free merchandise into three categories: Silver, Gold, and Platinum. In each category, there are numerous offers. The lead generation Defendants requir the consumer to "participate in" multiple offers from each category to obtain the promised free merchandise. 25. Clicking on each offer reveals what the consumer must d to "participate in" the offer. In some cases, "participating in" an offer entails paying money or incurring some other detriment, such as qualifying and applying for credit cards. The lead Complaint Page 6 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 7 of 30 PageID #:37 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 7 of 34 generation Defendants require the consumer to participate in mul tiple offers before he or she can progress to the next tier of 1 2 3 4 offers. 26. Some of the offers have free-trial periods, but require the consumer to participate for a minimum period of time to qualify for the lead generation Defendants' promised free 5 6 7 8 9 10 merchandise thereby causing consumers to incur costs they cannot recover. In some instances, the minimum period is longer than th free-trial period. Moreover, many such offers contain negative option components in which the consumer who does not cancel wi thi the free trial period will be billed automatically. 27. In some instances, the lead generation Defendants 11 12 require the consumer to solicit up to five friends to participate in the lead generation Defendants' program as a condition to 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 awarding the consumer with the promised free merchandise. If all the friends do not complete all of their required offers, the lea generation Defendants do not award the consumer with the promised free merchandise. 28. In many instances, the consumer stops trying to qualify for the lead generation Defendants' promised free merchandise, either because of the cost involved or the time and effort required. Al though the consumer has expended money or incurred other obligations in pursuit of the lead generation Defendants' promised free merchandise, because he or she has not completed al of the lead generation Defendants' required third-party promotions, the consumer does not receive the promised free merchandise. 29. In most instances, it is impossible for the consumer to qualify for the lead generation Defendants' promised free Complaint Page 7 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 8 of 30 PageID #:38 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 8 of 34 merchandise without spending money. DEFEANS 'VUECLICK'S AN HI-SPEED MEIA'S EML PRTICES 2 3 4 5 6 7 8 9 10 30. Since at least January 1, 2005, and continuing to the present, the lead generation Defendants have initiated the transmission of commercial email messages to protected computers. The primary purpose of these commercial email messages has been the commercial advertisement or promotion of Internet websi tes operated for a commercial purpose by the lead generation Defendants. 31. The lead generation Defendants are "initiators" with respect t~ an email message when they have either originated or 11 12 transmitted a message themselves or have procured the origination or transmission of a message through payments or other 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 consideration, or inducements, to others. 32. The lead generation Defendants are "senders" with respect to an email message when they have initiated a message an it is the lead generation Defendants' websites that are being advertised or promoted by such message. 33. In numerous instances, to induce consumers to open and read their commercial emails, the lead generation Defendants have initiated commercial email messages that contain subject headers that misrepresent the content or subject matter of the message, including, but not limited to, false representations that consumers have been specially selected to receive free products a services. DEFEANS VAUECLICK' S, aI-SPEED MEDIA'S. AN E-BAYLN'S PRACTICES REGAING INmmTION SECUTY AN SENSITIV CUSTOM FINACIA INFORMTION 28 Complaint Page 8 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 9 of 30 PageID #:39 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 9 of 34 34. Since at least 2004, Defendant ValueClick, and its i 2 3 4 wholly-owned subsidiary, Defendant Hi-Speed Media, have marketed ~nd sold consumer products through the Internet at the following sites ("HSM sites"), which together form the ValueClick E-Commerc Network: HotProductOutlet. com, InkBl vd. com, Jevene. com (now known as Oasiderm. com), Life-visage. com, and Yourinkstation. com. 5 6 7 8 9 10 11 12 35. In June 2005, in order to expand its online business, Defendant ValueClick acquired as a wholly-owned subsidiary Defendant E-Babylon, an e-commerce company that marketed and sold printer accessories such as ink jet and toner cartridges. Defendant ValueClick added E-Babylon's e-commerce business to the existing ai-Speed Media business and the associated websi tes to the ValueClick E-Commerce Network. As a result, Defendants ValueClick, Hi-Speed Media, and E-Babylon marketed and sold 13 14 consumer products through the following addi tional sites acquired with Defendant E-Babylon ("E-Babylon sites"): OOInkJet. com, 15 16 17 18 19 20 21 22 23 24 25 26 27 28 007 inkj ets. com, l11inkj ets. com, 123digi talpcs. com, 123inkj ets. com, 123LaserToner. com, 411InkJets. com, 4YourInkPrinter. com, 911InkJets. com, ABClnkJets. com, DiscoverInk. com, FreeCartridges. com, Happylnks. com, IdirectShopping. com, Ink2All. com, InkJet4 Sale. com, InkJetBroker. com, InkJetOrder. com, MaxInkJets. com, OrderMylnk. com, OutofInk. com, PetersInkJets. com, ProlnkJets. com, SpectrumInks. com, and WhenUPrint. com. 36. In order to make purchases from any of these websites, consumers must pay using a credit or debit card. To complete these transactions, consumers must provide personal information, including the consumer's first and last name, billing address, shipping address, phone numer, fax numer, email address, password, order identification number, credit card number, and Complaint Page 9 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 10 of 30 PageID #:40 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 10 of 34 credit card expiration date. Defendants ValueClick, Hi-Speed Media, and E-Babylon store this information within databases that 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 support or connect to the websi tes. 37. In addition to these types of information, Defendants' HSM sites and some of the E-Babylon sites also collected and retained in databases the three-digit credit card verification codes ("CVV2 codes") provided by consumers in order to complete transactions on these websi tes. CVV2 codes, which are printed on the back of the cards, are particularly sensitive because they ar used to verify credit card transactions when the cards are not present, such as in online or telephone transactions. Possession of CVV2 cqde information would make it significantly easier for identity thieves to use stolen credit card information for fraudulent purchases. 38. Since July 2004, Defendants ValueClick and Hi-Speed Media have disseminated or have caused to be disseminated a privacy policy on the HSM sites, including but not necessarily limited to the attached Exhibit A, containing the following statements: The ValueClick Network employs industry standard security measures to ensure the security of all data. Any data that is stored on ValueClick's servers is treated as proprietary and confidential and is not available to the public. ValueClick also encrypts sensitive information such as passwords and financial data. ValueClick has an internal security policy with respect to the confidentiality of customer and other data, allowing access only to those employees or third parties who need to know such information for the purpose of effecti vely delivering ValueClick products and services by means of user login and password requirements. The ValueClick Network routinely evaluates its data security practices to identify security threats or opportunities for improvement. (Exhibit A, www.inkblvd.com Privacy Policy, July 7, 2004 ) 39. From the time of the acquisition of Defendant E- Babylon Complaint Page 10 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 11 of 30 PageID #:41 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 11 of 34 until July 26, 2006, Defendants ValueClick, Hi-Speed Media, and E Babylon disseminated or caused to be disseminated a privacy polic 1 2 on the E-Babylon sites, including but not necessarily limited to the attached Exhibit B, containing the following statements: 3 4 5 6 7 8 At our site you can be assured that your Personally Identifiable Information is secure, consistent with current industry standards. ... In addition, your Personally Identifiable Information resides on a secure server that only selected key personnel and contractors have access to via password. We encrypt your Personally Identifiable Information and thereby prevent unauthorized parties from viewing such information when it is transmitted to us. (Exhibit B, www.123inkjets.com Privacy Policy) 9 10 40. On July 26, 2006, Defendants ValueClick, Hi-Speed Media, and E-Babylon amended the privacy policies on the E-Babylon sites 11 12 to make them identical to the privacy policies on the HSM sites, with the same statements regarding security and encryption as are 13 14 is 16 17 18 19 20 21 22 23 24 25 26 27 28 described in Paragraph 39. 41. From at least July 2004 to November 2006 for the HSM sites, and from the acquisition of E-Babylon to November 2006 for the E-Babylon sites, Defendants ValueClick, Hi-Speed Media, and E Babylon did not encrypt sensitive information consistent with industry standards. Instead, Defendants stored sensi ti ve custome information collected through the HSM sites in a database without any encryption, and Defendants stored sensitive customer information collected through the E-Babylon sites in a database using a nonstandard, proprietary form of encryption. This latter form of encryption did not use the type of extensively-tested algorithms found in industry-standard systems, but instead utilized a simple alphabetic substitution system that was subject to significant vulnerabilities. 42. Between at least June 2005 and late 2006, the E-Babylon Complaint Page 11 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 12 of 30 PageID #:42 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 12 of 34 sites were vulnerable to commonly known or reasonably foreseeable attacks from third parties attempting to obtain access to custome 1 2 3 4 5 6 7 8 9 10 information stored in Defp.ndants' databases, including but not limited to, web-based application attacks such as "Structured Query Language" (SQL) injection attacks. Such attacks occur when an attacker enters certain characters or commands in the address (or URL) bar of a standard web browser in order to manipulate a web application and thereby gain access to information contained in databases supporting the application. Here, the vulnerability affected databases containing consumer credit card information submitted to E-Babylon sites, which was maintained in a nonsecure form. During the relevant period, SQL injection attacks were a 11 12 well-known and well-publicized form of hacking attack, and solutions to prevent such attacks were readily-available and 13 14 inexpensi ve. VIOLATIONS OF THE FTC ACT 15 16 17 18 43. As set forth below, Defendants have violated Section 5 (a) of the FTC Act in connection with advertising, offering, marketing, and promoting of advertised offers. COUN I 19 20 21 22 23 24 25 26 44. Through the means described in Paragraphs 17-29, Defendants ValueClick and Hi-Speed Media have represented, expressly or by implication, that Defendants ValueClick's and HiSpeed Media's advertised offers are without cost or obligation. 45. Defendants ValueClick and Hi-Speed Media have failed to disclose or to disclose adequately to consumers the material term and conditions of their program, including: a. that consumers must pay money or other 27 consideration to participate in Defendants 28 Complaint Page 12 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 13 of 30 PageID #:43 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 13 of 34 ValueClick's and Hi-Speed Media's program; and b. the costs and obligations for participating in 1 Defendants ValueClick's and Hi-Speed Media's 2 program. 3 4 46. As a result of the representation set forth in Paragrap 44, Defendants ValueClick's and Hi-Speed Media's failure to 5 6 7 8 disclose or to disclose adequately the material information set forth in Paragraph 45 is deceptive, and violates Section 5 (a) of the FTC Act, 15 u. S. c. § 45 (a) . COUN II 9 10 47. Through the means described in Paragraphs 38-40, Defendant~ ValueClick, Hi-Speed Media, and E-Babylon have 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 represented, expressly or by implication, that they encrypt the sensitive information they collect through their websites consistent with industry standards. 48. In truth and in fact, these Defendants have not encrypted the sensi ti ve information they collect through their websi tes consistent with industry standards. In particular, Defendants ValueClick and Hi-Speed Media did not encrypt sensitiv customer information for customers making purchases on HSM sites, and Defendants ValueClick, Hi-Speed Media, and E-Babylon encrypte sensitive customer information for customers making purchases on E-Babylon sites using only an insecure form of alphabetic substitution that is not consistent with, and less protective than, industry-standard encryption. Therefore, the representatio set forth, in Paragraph 47 was false or misleading and constituted a deceptive act or practice in violation of Section 5 (a) of the FTC Act, i 5 u. S . C. § 45 (a) . COUN III 28 Complaint Page 13 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 14 of 30 PageID #:44 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 14 of 34 49. Through the means described in Paragraphs 38-40, Defendants ValueClick, Hi-Speed Media, and E-Babylon have 1 2 represented, expressly or by implication, that they implemented reasonable and appropriate measures to protect against 3 4 5 6 7 8 9 unauthorized access to the sensi ti ve personal information they obtained from customers. SO. In truth and in fact, these Defendants did not implemen reasonable and appropriate measu~es to protect against unauthorized access to the sensitive personal information they obtained from customers. In particular, the E-Babylon sites of Defendants ValueClick, Hi-Speed Media, and E-Babylon and the 10 associateq databases were vulnerable to a commonly known and 11 12 13 14 15 16 17 18 19 reasonably foreseeable type of attack known as an SQL injection, which, if exploited, would have allowed access by unauthorized indi viduals to sensi ti ve customer financial information. Moreover, because this information was stored without effective encryption, it was particularly vulnerable to compromise. Therefore, the representation set forth in Paragraph 49 was false or misleading and constituted a deceptive act or practice in violation of Section Sea) of the FTC Act, 15 U.S.c. § 4S(a). VIOLAION OF THE CA-SPAM ACT 20 21 22 23 24 25 51. The CAN-SPAM Act, 15 U.S.C. § 7701 et ~., became effecti ve on January 1, 2004, and has since remained in full forc and effect. 52. Section Sea) (2) of CAN-SPAM, 15 U.S.C. § 7704(a) (2), states: It is unlawful for any person to initiate the transmission, to a protected computer, of a commercial electronic mail message, if such person has actual knowledge, or knowledge 26 27 fairly implied on the basis of obj ecti ve 28 Complaint Page 14 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 15 of 30 PageID #:45 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 15 of 34 circumstances, that a subject heading of the message would be likely to mislead a recipient, acting reasonably under the circumstances, about a material fact regarding the contents or subject matter of the message (consistent with the criteria used in enforcement of section 5 of the Federal Trade Commission Act (15 U.S.C. 45)). 2 3 4 53. Section 7(e) of CAN-SPAM, 15 U.S~C. § 7706(e), states 5 that in any action to enforce compliance through an injunction 6 with Section 5 (a) (2) and other specified sections of CAN-SPAM, th 7 FTC need not allege or prove the state of mind required by such 8 sections. 9 54. Section 7 (a) of the CAN-SPAM Act states: 10 (T) his Act shaii be enforced by the (FTC) as if the violation of this Act were an unfair or -deceptive act or practice proscribed under II section 18 (a) (1) (B) of the (FTC Act) (15 U.S.C.57a(a)(1)(B)). 12 13 COUN IV 14 55. Through the means described in Paragraphs 30-33, 15 Defendants ValueClick and Hi-Speed Media have initiated the 16 transmission, to protected computers, of commercial email message 17 that contained subj ect headings that would be likely to mislead a 18 recipient, acting reasonably under the circumstances, about a 19 material fact regarding the contents or subject matter of the 20 message. 21 56. Therefore, Defendants ValueClick's and Hi-Speed Media's 22 acts or practices violate Section S(a) (2) of CAN-SPAM, 15 U.S.C. 23 § 7704 (a) (2) . 24 CONSUM INJUY 25 57. Consumers throughout the United States have been injure 26 as a result of Defendants' unlawful acts or practices. Absent 27 injunctive relief by this Court, Defendants are likely to continu 28 Complaint Page 15 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 16 of 30 PageID #:46 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 16 of 34 to injure consumers and to harm the public interest. THIS COURT'S POWR TO GRA REIEF 1 2 SR. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), 3 empowers this Court to grant injunctive and other ancillary relie to prevent and remedy any violation of any provision of law 4 enforced by the FTC. 5 6 59. Section SCm) (1) (A) of the FTC Act, 15 U.S.C. 7 8 9 10 § 45 (m) (1) (A), as modified by Section 4 of the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. § 2461, as amended, and as implemented by 16 C. F. R. § 1.98 (d) (2007), authorizes this Court to award monetary civil penalties of not 11 more than .$11,000 for each violation of CAN-SPAM. Defendants ValueClick's and Hi-Speed Media's violations of CAN-SPAM were 12 13 committed with the knowledge required by Section 5 (m) (1) (A) of th 14 FTC Act, 15 U.S.C. § 45(m) (1) (A). 15 16 60. This Court, in the exercise of its equitable jurisdiction, may award ancillary relief to remedy injury caused 17 by Defendants' violations of CAN-SPAM and the FTC Act. PRAYE FOR REIEF 18 19 20 21 22 23 24 25 26 27 28 WHEREFORE, Plaintiff requests that this Court, as authorized by Sections 5 (a), 5 (m) (1) (A), 13 (b) and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 4S(m)(I)(A), S3(b), and S7b, and pursuant to its own equitable powers: 1. Enter judgment against Defendants and in favor of Plaintiff for each violation alleged in this complaint; 2. Award Plaintiff monetary civil penal ties from Defendant ValueClick and Hi-Speed Media for every violation of CAN-SPAM; 3. Award Plaintiff such relief as the Court finds necessar to redress injury to consumers resulting from Defendants' Complaint Page 16 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 17 of 30 PageID #:47 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 17 of 34 violations of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), including, but not limited to, rescission of contracts, 1 2 restitution, the refund of monies paid, and the disgorgement of ill-gotten monies; 3 4 4. Enter a permanent injunction to prevent future violations of the FTC Act and CAN-SPAM by Defendants; 5 6 7 8 S. Order Defendants to pay the costs of this action; and 6. Award Plaintiff such other and addi tiona! relief as the Court may determine to be just and proper. 9 10 11 12 J3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Complaint Page 17 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 18 of 30 PageID #:48 Case 2:08-cv-01711-MMM-RZ Document 1 Dated: ~4 t'$. , 2008 Respect fully submitted, OF COUNSEL: FOR THE UNITED STATES OF AMERICA JEFFREY S. BUCHOLTZ Acting Assistant Attorney General Civil Division U. S. DEPARTMENT OF JUSTICE 1 2 3 4 5 6 7 8 9 10 11 12 13 Filed 03113/2008 Page 18 of 34 LOIS C. GREISMA Associate Director for ,Marketing Practices FEDERAL TRADE COMMISSION THOMAS P. 0' BRIEN Uni ted States Attorney JOEL WINSTON LEE WEIDMA Assistant United States Attorney Associate Director for Privacy and Identity Protection Chief , Civil Division GÊŠN ~p...... FEDERAL TRADE COMMISSION Stephen L. Cohen Ethan Arenson Burke W. Kappler Attorneys Federal Trade Commission 600 Pennsylvania Ave., N.W., Washington, DC 20580 PHONE: 202-326-3222; 326- 2204; 326-2043 FAX: 202-326-3395; 326-3768 ~ sistant U. S. Attorney Chief, Civil Fraud Section California State Bar No. 101233 Room 7516, Federal Building 300 North Los Angeles Street Los Angeles, California, 90012 Telephone: (213) 894-2474 Facsimile: (213) 894-2380 Email: gary. plessman@usdoj . gov EUGENE M. THIROLF Director, 14 KENNETH L. JOST Deputy Director, Office of onsumer Litigation 15 16 17 W. BURKE T al Attorney 18 o fice of Consumer Litigation U. S. Department of Justice P.O. Box 386 Washington, D.C. 20044 PHONE: 202-353-2001 19 20 FAX: 202-514 -87 42 josh. burke@usdoj . gov 21 22 23 24 25 26 27 28 Complaint Page 18 of 18 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 19 of 30 PageID #:49 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 19 of 34 EXHmITA lI II~ with Inlormat'on from other sources. purposes, suth as inllyzng ind miniglng our buslnei or combIne the Information we hive glthere about you tnnSaetlons antere Into by you on the SIt!. We "50 miy us. YOur personil rnrormltlon fo Intemil busIness reuest, to customize your experence on the Site, ind to contct you when necessary In connecIon wIth The ViiluiiC/lcl( Networ/ may use your pn fo cuomer seilce, to provIde you wIth Inrormlltlon that you miy or emllatlons; triide unIon membershIp or sex lire. rèuest 0' co/l-iet detl regiirdlng meclcVlealt COnditions; raclil or ethnic: o,lgln; øolltlill, rellOloul or ""lløoplilcl beiiet Inrormaiioii. Th/s Informtin.. uJe to PII!I YOUr Order ind Wi Qnno do so "nhout It. 1l ViilueCIIGk NetwOrk wm neve, an O'der wllh " VIIUICIlIc Netork Sb, YOU ""'ii liked to Ø/'Vle your .nme, iddre.., zIp ctde, 8~11 edd/'u and blUlno TI Viluec/ck Network slles ire designed to olrr In~met conum wIth i variety 0' viilulble PIuet. Whe YOU pllce A. Personally Identln.blt Inform.tlon (PU). I. lNFOIll'IAnON we COLLECT: INDIVIDUAL INTERNET CONSUMERS Indl"'duii privacy, ...." .... "-'''a ~, ""_ 10' ..m.. .. "_ty ... _.. _.... Is essentl;:l to the growth and prsperity or the Internet; second, th.t a pèl'onlllzed Web experience cin provIde SIgnifcant beneftts to Internet end U.ers " done prope. In accordince WIth these bellers, the Viiliieaiclt htt://WW.inblvd.COmlindC:C.pl:P?pnge-pñvacy iiXe II Wa " Q/ II .I IitlhUE!lK ll J. lib li t1 II~ ItJæ It..l II 8m ll~ La..rToner. 1iWi The V.'ueClick Network's Infonnltlon usage praetce ire baSed on two belle',: firs that protecting user prlvicy STATEMl'NT OF RESPONSIBLE ONUNe MARKEnNG Network I!nd ?ther VllueC:llck compinles pleeie.vlslt WWw.V..ueC:llck.com. :.::;::~~~:.. "" "";:::'::===: E-Commi:rce Networl ("Valuealck Network' 'Vllueciicf 'Wi' or 'us'). iimi II Saiwuog ~1i1 Ii VIew C.rt , CIi-ekoUI "' .... HI .."" ... '- -. ... .... .r ""'" ... li .m"", .""O'nJa ...... th .11"".. V.raion: July 1, 2004 PrIvacy "ollcy Hom.. "" .\bout u. ~ CDiit.et u. ~ I'AQ'1 ~ ...,. .. t Ii ., t.. f r -., "'''~;:::::¡'~'';; ::. ,,, "".. ....... .... th ""'''0'' D -.~ - 1i ·..ÇJ..I. '"" ,.J'...,':, "e' r!' . '\r~ 5"~ r.:' l' . ~. .1'.; III e CJrtnwc¡cs ot !,):;cr ~.:~:':!S; l:'" ,b ll fanSO II Q1 'WM II J. 11 l: II EQ " Im ll~ II~ II &i ll Ai Iniq.t Cartdg.. rirow~1" InkBlvd e ----------..... cø CI - " oc: ø-ø ~ \Ø )0 i- ti H 5 H Inklvd.com I Save up to 85% on Inkjet Cardges & Laser Toners 717/2004 Pii.."! i ors _. .._---.._.,.......~. o '" sa w .¡ o f' CD co Ql ~ ocoo -. .. W :n CD 0. -.. :: 3 CD c o o(" :: N s: s:, s: " .. ...... 1 o i Ö o: f' CD fI Ql (" Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 20 of 30 PageID #:50 I: ..I: ~. G) ..cø o N )0 t- ~ H ~ H '... . . iggreglltl! lind us..specnc Infonnatlon on whit piges vistors ieetss or visit. Wi restIe the right to retiln ill 3 CD htt://ww.inblvcicom!indcx.php'!ptige-rivacy ind other a'J"~ementsj or protect the right, prpert, or safety 0' VllutClltk or other. This Includes exchinglng ipproprl.'e ti, resond to i subpoena or otlelwlse comply wit thiriw; enroree or apply our IIi:GøiJl The ValulCII, k Network may release iccunt a~d iny other 'peßO~1 Inrormatlon when we believe riiiise Is reorginlziltlon. or liquIdation or lIny 0' the VllueCllck Network compinles. WhIle ValueOlck strongly encoutlges clients lind polrtners to adopt responsIble ippracies to online marletlng, ValueCllck Is not responsible for the informatliin priictlces 0' clients or theIr parters. The toleCton, use, and diSclosure oI'lnformlitlon by clients and partners ~rt !;ubJed tD theIr respecte prilCY POlicies, which may differ from VlluIiO/ck', policy. programs or in connecon with the sill', merger, cosolidation, change In control, trans'er of substantlil isset, sources) ..Ith advertisers, third part mirketers, our amllited entitIes for theIr online and/or amIne mirketng The ValueCllck NetWork may miire PU (including Infonnltlon thlt has been enhanced with In'ormat/on frm other Integrtty lind quality of that In'ormatlon. .dentinible Infonnlt/on wIth dllta collected from other sources, we wm take reasonible steps to maintain the other Soi'rcos In in eftrt to ensure that the messigei being sent to the consumer In onlln. indlor omlne mirketlng prl3grams ire relevant to theIr Intere. In the event we enhance andlor mere such personally have opttod.lii to receIve marketing communications with commercallY-llvallable third party dati colled (rom The Vl/ucCllck Network and/or our mirletlng pirters miv enhance indlor merge PIl iibout consumers who of In(ormaiioii P,ovld.d by ValueCllck. "U .i w sa I' .. CD co ii co ..w ooì' a. ow -- CD :: .. :: .. c thIrd parties rOr those limIte purposes. Any third-part vendor so used has iiøreed to protect the conndent/illty ormation wIth these and VIIUl'Cllcl( Network iItes or admInister ictlvtles on our behilf. We may shire your In' o (" o :: N 5: i s: The Valu(cliClc Network may use third part vendors (e.g., crdit cert prOCISsors) to help us operlte our business II. irIFORr~ATION SHARING website triiffc reporting ditl iS long iS miv be rusonibly necessiry for iccountlng ind audIting purpse. i 5: you rern to our .Ite. For eaCh \'ISlt"r to our webslti, our Web sirvir iiutomitllly recgnIze. only the VISitor'. ip IddrelS. We u.e your to track yaur shoppIng cart lind ,.tiii yor Infol1tln lind prer_nc. when. we isslgn nth visitor a unique ID tIlt Is USed to trck visItor trmc: pitterns withIn our webSite. We ilso collect ~I i Ö co I' CD Ul (" ii IP IIddress to help dl.gn0SC prblems WIth OUr serer ind to idmlnlser our webSIte. Upon Visiting our websIte, '717200 '-' Pap" 2 of S o.. .... .. Identitler t.J lh.. ind user's Inteei browiir. Cokies lire ,mii" datil "'et colinlv used on til Jit.me to help optlmlze lind personlllZli the Internet end use, experi lind identif ,.peiit vlJllOrs to websltes. For eltimple, Coles enllb/i "llueCllck Whin you vlsli. a VatulCllck Netork site, WI! sind II Cookie and/or glf nle ("COokies') to IllIn In iinonymous, unique B. Non-Personally Ident/nabli Informlt/on (PIl). the "llueCllc:k Network ind selected thIrd pllrtes we thInk you would be Interested In. . Unless yo\l till us not to, we miy usi YOur Øerñinformltln to contlct you Ibout O"irs or promotion. from Inklvrl.com I Save up to 85% on lllkj~t Cadge & Luer Toner Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 21 of 30 PageID #:51 cø -.. -a nie '!llurCliclc Netwrk may nnd It necry or be legilly obligated to update thIs Prlvicy Policy from time to V. CONSENT AND CHANGeS informiitlon you transmit to us. You iicknowlecge and assume this risk when communIcatIng wIth i VlIlUICI'ck Network company. unlëlwfully. While we stIVe to protec your PII, Valueciick cannot ensure or wirrnt the security of iny piirtles not under the control of Valueolck to Intercept or accss transmISSIons or prlvite communIcations No trinsmlsslon of data Over the Intemet /s guiiranteed to be completely SeCure. It may bi possble for thIrd routInely llV;Jlulites It. ditl security practces to ldentll' securtty threits or OØportunltles for Improvemet. V.luGeiic!: pr:)ducts lind services by mHns or uier login ind PISSWOrd requirements. Thi ValueCllck Network tIl1t is stor~d.on VllueOlck's servers Is treated IS proprletiry lind conßdintlaland Is not aVillIable to the public. . ValueClIcI: II~o ençrpts senSItiVe Informiitlon such IS passYfrds lind nnanclal data. VllueCllck has in Interniil SeCllrity poi:c:i with respect to the conndentlaiity or customer and other data, allowing iccess only to those employen or third partes who have ii need to know such Information for the purpose of effectively delivering The Valul'C/lclt Nltwork empoys Industry stndlrd security meiisures to ensure the securlty of iII dlta. Any dlti 'l, SECUr.in'. ind deletIons wil not chiinge or delete Infomat/on iiirldy collected is plrt of a plrtlculir trinsaeton. communIcations frm the Valueoick Network wil chinge or delete the data only In our dltebise for purposes of trnslletln; luture buslneis on our sitlS ind for managIng fure communIcations frm InkBlvd. These changes customersel'vlce4!inkBlvd.com. Chinglnv or deleting your Informltion or otherwIse optlng.out of receIpt of ftter suspicious date. You may chinge, corre or update your Information by email by contaetng The VllueÇllck Netor use. softare and third-part sources to vahdlte the accuracy of PJJ proVIded andlor do thIs. by changIng a s~ttng In your Internet browser. Pliise see your browser supplier's website for detill. on how to The Cookll! WI use do not have in .opt-out" OptiOn, yet you stli hive the option of bloclcng the use of cookla PU under more thin one email iecount, you must submit separate unsubscrIbe requests from each account. removed iintl;ely frm OUt email list and wIU no longer receive olrer frm us. if you hliVI registered or submitted by Iillng thii unsubscrtbe optIon withIn iiny promotional olrer. In compliance with the CAN-SPAM Act, you wil be http://ww.inkbivd.comlindcx.pl.p.!p:lge-Privacy . nc. i o Q I' .. :i .. U lit iinytime you no longer wish to reeIve offrs frm i InkB/vd, you ",iy "unsubScribe" through this websIte or II. CONS!JMl:i: CHOICE AND ACCESS i- ... Informiitlr.n r;lth other COmplinles and orginliitlon for frud protecon. tt: t- a In.'''-l.com I Save up to 85% on Inkjet Cadges & Laei room '.-... 7nl2004 "-..' P8. 3 of 5 "U ~ -w !'!' o CD CO w 00 oo ì\ w ~ .. O C- CD !! :: CD -.. o ooi: 3 :: N š: š: š:i I o.. .... .. ~I i Ö (X !' CD rJ W (" Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 22 of 30 PageID #:52 '- -- VII, DATA PROCeSSING g"' ..00 cø I (" Both Mirketer's Advertiser's Opt-Out Mechanism to Use htt://ww.inlvd.Comindcx. plip '!piige-rivacy stated In this Prlvicy Stltement ind Our Il/ ind CandlVarn. transactons provIded by this Site; ind (II) that such use by Ink8lvd shan be subject to the terms and conditions You icknowledoe tt'at InkBlvd operates In the United State and igree to CI) permit InkBlvd to transmIt and use your User Inrormltlon anywher necessary, IncludIng icross Intemitlonal boundirles, to affec the services ind rrom th,: icbcrtlser or email merketlng compiny from tti: rn'all marketing company - ab'Jut tI:e advertlier - Tu recel ÌT r-o further email. . . . should U$'~, cau!õed some confusIon for consumers In opting out. The table below clarifies which opt-out meanism you consumers 10 unsubsalbe from future emill. about the advertser. Although not requIre to by law, nuny emill mir!;eters also Indude in opt-out mechinlsm to enible consumers to be removed rrom theIr mailng list. ThIs has Please note that under the CA-SPAM Act, in advertser Is requIred to proIde in opt-out mechinlsm tor 2003 (15 U,S.C. § 77!Jl); It Is our policy to ProhIbit the iending of unsolicIted or "Spam" emill by ValuecUck or any of Its marketing Plrters. The VlilutCliek Network Is committed to proper Intrnet practice ind full compllince with the CAN-SPAM Act of web slti. ii"!~se contict PrlvlcylDInkBlvd.com to hive them removed. YOur child has provided the VllueCllck Network wIth any persnally Identillebl. data by reglstertng at a ViJueCllcJc dlre'ted at children. Our policy Is not to p.i'mlt anyoni Under the age of 13 to do busIness with us. If you believe prlvilCY of eMdren using th. Internet. ValueClck'l web Iltl" prOCuct, ind Slrvlces iri not developed ror or i The Vllul'Clic:( Network Is very sensItive to tf. Issue of children'S privacy lind mikes eiiery effort to protec th. \f. CHIlt'Ret. '5 PIUVACY ANO SPAM \fiiueciic~' pr/)r to the e"eetve date of the policy change. otherwise riwulred by IIW, modltltlon. to thl. PrlviCY Policy wil not i'fect the privicy of dati colictid by iwore of the Informitlon we collect how we use It, ind under whit drcumstlnces we dlsclosi It. Except ii time. When we :do, we wil post those changes on this pige and update the effctve dltl so that you ire .'WIYI c: N N :i i- ~ H = H i InI"'¡.com I Save up to 85% on Inkjet Cadges & Laer Toners 7n1200 -- Pue40fS .i -w o I\ W CD Q) CO "U (X ow -.. se ooI\ a. CD :: CD -:l.. 3 (" c: oo ~ s: s: s:i . I .. "' .. ~ .. i Ö (X I\ CD en () Q) Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 23 of 30 PageID #:53 (Ø ..cø c: ..c: I ~ c. N 1)0 ti H ~ H ,-' 10......,. Copyriht e 200 InkBlvd.co. All rights rerved. OrJcer, 1::2/;0 Venturi Blvd SuIte 1750, Los Angeles, CA 91403. seiid an email tOPrlVlcyoinkBlvd.OrYOUClnsendcorpondencetothifoIlOWlnglddress:inkBIVd.PrVICY For 110re Inl'ormltlOn or '' you have questions or COncerns reglre'n; the ValueCllc: Network Prlvicy Policy, pleise co:, rACT lJ:; related dncuments have been drawn up In English. C'est L1 voJontl! express. des parties que II prisente convent/oii ilin., que les documents qui ,'y rittidient SOllnt nidlg" en angiiis. ~ - o I\ .i CD "' Q) to CO ow -.. w ooì' a. CD :! :: .... CD c 3 third pirtf's diiti ire obllgitory ind which dltii, If iny, Ire voluntiry; ind Cd) how the thIrd Plrt cin ICcess ind, if nece:isiry, rectfy the dita held ibout them. It Is the express will of the Plrtles that thIs igreement ind all per~onil dati you supply to InkBlvd with regird to: Ca) the purposes for which sud! thIrd pirty'S data hi, been coII,'cted; (b) the Intended recipients oreategorles of recipients of the thIrd part's pel'onil dlti; Cc) whIch of the ~ i s: :5 s: I i o.. .... .. , oe (" i CO Ö I\ CD CI Q) (" o o (" 7/72004 Paa" S ors You illso agree that you have provIded notlc;. to, and obtained consent from, any thIrd part IndIviduals whose CO;:DITOlIS OF THIS PRIVACY POLICY ÀND OUR.IBM AN CONDmQtJ (INCLUDING LlMlTATJONS ON DAMAES, ANO ARBI:'R,-\TION OF DISPUTéi). you AGREE THAT INI(BLVD'$ UABIUT FOR ANY BlEACH OF THiS PRVACY POLICY SHl.I, L BE L111TF.O TO THE VALUe OF THE TRNSAONS OA SERVICES PROVIDfD TO YOU BY IN/(BLVD TO THe fXENT 5U::1I Cl:~ IS IIOT OTJERWIS,e ØARRED BY OUl TERMS AND CONDmQNS. you UNr'E~STAND AND AGREE THAT ANY DISPUTE OVER PRIVACY is SUBJECT TO THE teRMS AND ix, tIMIT!ITcOtJ OF LIABIlI, THIRO PARTY INFORMATION" LANGUAGE http://nei workadvertlslng.orgf. 'data we collect, how we use them, and why the use of dita cin benent consumer's expi)rlenc~ oiillne. For mOre Informitlon ibout th Network Advertising Allince pleise go to eXplanatlcn cr whit network advertisers committed to IncreasIng consumer conftdence ind contrIbuting to the growth or electron,c commercl!. We, iiang wIth other members of the NAl, ire comm1tte,d to provIdIng consumers wIth i clear Valu~C"Ck. Inc. Is a member of the tietwork Advertsing Inltlltlve C"NAl"). The NA Ii i group of thIrd Plrty Vl1, NETWORK ADVERTISING INmATIVe htt://w..iblvd.comlindcx.php ?piige-priv8CY \- lnlwt.com I Save up to 85% 011 JlikjetCardges & Laer Toners Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 24 of 30 PageID #:54 Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 25 of 30 PageID #:55 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 25 of 34 EXHmITB Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 26 of 30 PageID #:56 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 26 of 34 Prite ii Cages. La Toner, Ribbons an Iakjet Prte Ca.. file:/iIE:lRcqUesÆa20No%20S%20anIW0206lPrinler"/0201nk%20C,., i j cacrdgc l23injels.co II. ,. in;.., . 123injets,cc! i i . ..._,.. ,_ _ _'._" .' _ _ .....j l_.i~jel ~dg~.~~_ ..___...._...__.,.. _.J _ .p-rite~_ I' -_....., ~ Ink Cartridges m Laser Toaers 00 RJbbon m Solid Ink Pr -tI D(~~Il~~~. ePr fd 00 PaD!r m Blank CDIDVD rn Cables æ Reycle ~Shiing I Serc 123iDel.com ~ 1:._______ f. . '--Mõncåy:Ffidåy6äñï:'6pmPTI SalUrdy 9a - Spm PT .._._.1 (88) 465-7765 .About U~ ~Your Orde~ ~Shipplng & Guann~ ~POliciel ~Payment & rnguirie4 (FAQI~ r= rr=iyour Privacy Rights This Priva Policy dilose the prva prce for 123inet,com weite and various relat service (together refer to as the site). As the provier of tlis, we are committed to protecüng your privacy oRline. In . niit.hdl our privacy polic states that we wi neYer reL, sell or leae your _an addres to anyone without your penin. So, please red the biCurmatlon below to lem the Collowing rerdiiig your lIe DC this site. I 23injet.co ha parer wit thrd pares to offer olDcutoma" an Site viitors a vaety of proucts serce. Odi thao as set foi herin we will not seU or lea you emil ad to thir pa advertser 10 an solicit yo di, However 123inkjet.co may sh Pernaly ldetifiale Infonnaton (but never your emil addres) with our niing pan in ord for them to off you additional proct an services thi 123 inkjets.com believes ma be ofinter to you. Although we only wor with third pa whm we believe to be reputale, OlD maetng paen may have different priva policies an price th i2Jinkjet.com. We encoure you 10 review OlD nieting parer' privacy policies to fier wila their proceurs for collecti usin and disclosing your inomitin. We ar DOt reponsible for th priva prce of ou main paer or any otl third paries, If you decid th yo would like to disnt reiv protional mals frm thes or any mird panes, plc:e coiit di ditly. Should yo wish to chae yo prefe regain the inrmon tb yo reive fr 123injels.com or its aflia or would prefer tl - not sha your Perally Idetifile hioiion wilb ou mati paer, ple refer to th pah belo entl 84. Updtiai _nd Correcting blonn_fioa" Plea note tl we Ir not reible fo et you Peily Idefile lnf'n ttm any third pares with whom we have shre your infomiii pur to ll te and coditions of Ibis Policy. You acwledge th this Prva Polic is pan of OlD Sit Ter of Use, an by accessing or usin ou site, you ag to be boun by all of its te and çondtions. If you do no age to thes te plea do noi ii or use th site. We rerve th righ to cl th Prva Polic at any tie. Such cles modificaion, addition or deletns shall be effecve imiaty up noce thf, whch ma be given by me includin, bui not limited to issiii an emil to th emil addr lied by regitere us an postng the revied Policy on this pa. You acknwlede and agr th it is your responsibilit 10 mataÙl a vaid email addr as a regisre user, revie th site and th Policy periodcaly and to be awa of any modifications. You contued us ofdi site af such modification will constu your (i) acowlceni of the modifie Polic; and (b) ageement 10 abide and be boiud by the modfied Policy. VC -002018 i ofS EXHIBIT B 24 12I4riOO 1:29 PM Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 27 of 30 PageID #:57 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 27 of 34 Printe 1nJ Cadg Laer Tone, Ribb ii Inkjei Printe Ca.. file:flÆ:/e20No%20S%20aif.4206IPriler1e201ni020Ca... 1. Ty of Informatioa CoDected In orer to be prvide yo wi our nuer service, we collec two ty of informon abut our users: Persy ldefile lnforoii aø Non-Peronally Identifiable Infonon. Our prma goa in collecting inon from yo is to provid you with a smodi effcient, an cuniiud expeence while using our sire, Perlly Identile lnformlioii: This refers 10 informtion th leIS us Iaw the speifics of who you ii. When you enage in cein iiivities on this sire, suc: as regiser for a mebeip. orerng a prouc or seice, submitii coniet and/or poin conlen in discion fon or oth public ar. enteri a coiiie or swps, filin ou a suey. O£ sedin us feba. we may ask you to prvide cena infonatiOl abo youlfby fillin out and submittng 8l onliiie fonn. It is completly optiona for you 10 elec to enge in di 8Cvities, however, we may as th you prvide us pena informon, such lI yo firs Il la na maili ad (including zi job tile Il depaent. telepone an faimile numbe an o1h pe coe). eml8d emlo, identify informon. When orderng pruct or seice on ib site, you may be aske to provide a crit ça numbe. Deding upn the aciviiy, some of some as voliu. If th inConnation we ask you to prvide is identfi as mary an you do DOt prvi the airy dat with rest to a parla acviiy, you wil not be able to enge ii lhlactivity. Non-Perlly Identifiable Infortion: This refers to infonnon ih do nol by itslf identify a spific inividual We ga cena informion aboi you based upon wher you visii Oil our site in severl ways, This infomion is compiled and anyz on botl a pesonl aid an aggga bais, This äifomwon may inlude th Web site's Unifonn Resurc Lo (U) th you jusi cae frm, which URL you nex go to, what brwser you are using, 8ld yo Inteel Prol (I') addr. A URL is the globa adre of documelilS 8ld oter reOWes Oil th World Wide Web. An IP addr is an idetifier for a computer or device on a TRIisio Control Pr1lem Prtocl (TCPII) ncrt such as the World Wide Web. Networlc lik the Web us the TCPII protol to rout infomon ba on the (P add of the deti, In other word, an lP addr is a numbe th is aiicaly asig to you compte wheve yo ar sug the we. allowin web seer 10 locte uid ideify you compu. Coer reir IP adse in orer for users to counica Oil th Inleet 1. ColletIa Metliod aad Use of larorm.tion We: do not colle any Perly Idenifile Infonnation about you unless you voluntaily provide it to lI. You prvide cein Pernaly Identifible lnfomion to us when you (a) regiser for our seric and regiser you emil ades with us; (b) enter sweeps or cotets spoored by us or one of our paer; (c) sign up for speia offers from selec third pares; (d) se eml messaes, sumil fonn or trl other informion by relephoe or Ie:tt or (e) submit your crit ca or other paymenl information when orering and purhasing pructs and sece on ou site We may &I collec infonntiOD frm you It oter points on our site that state th su infoation is being coUecte In addit we may als colJe or ou thin pa ad seer and/or cotent secc may collec ce Non. Pccsol1y Idetile Informon. Th inon is ultiely stor iii the: fonn of store categori and, in some caes, spific URL. We us your (P addr to diose problem wit our servrs soft to adiniste ou site an to . gatl demgrc infoon, Ou di plr ad seer wil al provide us with sum, but not iDdívidua~ rert dit willlell us bow may ad wer preen an c1ic: upn at out site We will prily use yo Perly ldentifIble InfonQn to provide our serice to you, as reuired by our agents wit you. We wilils us Penaly Identifiable Inforon to enhace the option of ou site, fiJI orders improve ou internal an maeting paers promotional effor statisicaly anlyz siie us, imprve our prod 8ld seice offer an i:izc our site's conte layout, an seice We may us Perlly Identiable lnol1on to delier infomion 10 you and to contacl you regading adinistve notice. We may alo us Personlly Idenfiable Infonon to relve dispte troubleoot problems an enforc our ageeenlS widi yo iDcluåig ou Site Ter of Use Saes Term 8ld Conditions, and this Private Policy. 3. Releas ofiDformation We prvide some of our service diug contal arangemenlS with affliates seices providers pancr and othr third pares. We (and our seic paer) us your Personally Idetifiable Informion to operaic our site and VC -002019 20fS EXHIBIT B 25 121412006 i :29 PM Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 28 of 30 PageID #:58 Case 2:08-cv-01711-MMM-RZ Filed 03/13/2008 Document 1 Page 28 of 34 Pier Ink Cadges, La Tonrs, Ribbo an Injet Prnte Ca.. fie:IIIE:~Æ.0No"'ii0S%20an%206rinter.l201nk/ii0Ca... to deliver thir seic. For exle, we mus rele yo crit Cl informi 'on to the cad-is ba to wnf pint for proct an servce pur on this ;ire; rele your ~ informion to the deliver servce to deliver produ tl you ordere; an provide your Bddr information to Ihir paes ti mal calo an other phcal prns; iid provide ord inforaton to thir paes that help us provide Custor seice. We wil enure our service paer to adpt an po prvacy policies. Hower, the use of your Peronally Identifiable Inormon by our sece paier is govered by the priva policies of those service paers, and is not IUjec to our wiil Ocionlly we may be requir by la enorcent or judicial auories to prvide Persooaly Identle Inonnon to th apprpriat goveenla authrities, We will disclos Pernally Idenifible Informtion upn reipt of a c: order, subpona or to cope wi a la enforcmet invegaion. We full COpcte with law enforen agciies in idetif thse wh us our sece for ilegal acvities. We res di right to re to law enforemen agencies any advities ti we in goo faith believe ro be unlawfL. We ma also provide Non-Personaly Identifile Informion about our cuomer' sales, tr patts, and related sito inrm to thir pa adver, bu the sititics do not include any Peronlly Idenfie Inforon. 4. Upd_tüi_nd Corretinilnform_lion We believe you should have the abilty to acce and edt t1e Pernally Idenfile Infomition th you have provide to us. You may cbae any of your Pernaly Identifiable Inforon in your acun onlie at any time by link to your accot in accrdce wi inctioa posted elsere on this sit. If you prefer, you may alo reuet in writiog th we no longer si Periilly Identifiale Informon with our maketig paet. Once we recive such reuest your inforn will be upd within 7 business days. You may al acs and WlTt your pena informon and privacy prfenc by wrting us at 123inets.com 2S E. Ea Stee Sim Valley, CA 9306S Pleae include your name. ad, anor email addr when you wntact us. We encoure yo to promptly upat you Persnally Identifiale Infonnation if it chaes, You may ask to have the infonon on your accunt delete or removed however, beause we kee trk of pas trtions. you caot delet iiionati asiat with patlRsaeton on this sit. In addition, it may be impible to completely delet back, your inforion with some reidl iDformion be of 5. User Choice 00 CoUection _nd Use of Informatin We may. fr tie to iime, sed you emil reg ou product and seices. Or, at any tie you can upate your icun iiiomon ro no longer reive suc emlings. Se Section 4 above. You also have choices widi resp to coie as describe below. By moifg your browser preferece you have th chice to aCt all cookies, to be noified when a cokie is set, or to rejec all cokie I f you i:os to rejec all cokies soe pa of our site may no work prpey in your ca. 6. Seurty of IoforaiüoD At ou site you GI be assure th you Peronaly Identifile Infomilion is sere. consistet with curent indu sla. The impoi1 of sety for all Peronally rdentifiable InfonnD asociate with ou user is of Ulos wnce to us. Your Pernally Idefiale Informion is prte in sever ways Acc by you to yo Perlly Idefiale Inoron is available thgh a pa an wiique cuto ID seleced by you. This pasord is ente We reen ii yo do Dot divulge your pard to anyo, In addition. your Pernaly Idetiable infonnllion reides on a seure se th only seleced key pelUel and contrctos have acs to via paword We encrt your Persally Idetifiable Information and thereby prevet unuthorize paics /Tom viewng such informtioD wh it is trnstt to us. Per infonotion th you provide that is not Personally Identifiale Infomiiion als reides on a secur serr VC -002020 30fS EXHIBIT B 26 1212412006 1:29 PM Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 29 of 30 PageID #:59 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 29 of 34 Prite Jn Cadges, La Tone, Ribbons and Inkjet Prier Ca.. file:IIIE:leqii1é0N~.iOS".iai.i06n~/.iO~/02OCai.. an is only accible vi passwrd Sinc this informon is not aciblc &o ouaide our compy you will Il be iied to select a pa in order to view or moifY su infonon. In order to mos cffcienly sere you, crit ca tntions ind orde fulflmen ar lied by esblisbe thir par baning, procing igets an disibution intituions. They rceive the informon neded to verfY and author yo cad or otr paymen~ ùûonntion an to pr an sh you order. UnConunately. no cb trision over th Inte or any wirle netor ca be gute to be lOOIe secuce. As a reule. while we strve to prote you Personlly Ideti6ale Inform you actowled th: (a) th ar serity and privac lim of the Internet which ar beond our COI; (b) the sec. intgr an priva of any an all infonntin and da excged be you an lI tIug th sit caot be gute; an (c) any such inforon an da may be ileglly vicwed or la with in trit by a third pa. 7. Cookies When you use our site we will store cokies on you computer in or to fatate and cumiz your iic of ou site. A colc is a sml da te file, wli a Web site st OI yo coier's had drve (if yo Web numbe, brows the pe) that ca IlI be retreved to idenif you to us. Ou cokies store radoy asigned us ideificaon cotr wher you are loed an yo fi nae to welcme you ba to ou site. The cokies ma your us of ib site eaier, ma tb siie nm more smoothly an help us to nitain å se site You ar alwas fr lo decline Ol cokies if¥Our browser peits, bu some par of our sit may not work pr in th cae. We may us an outside ad serg copany to diplay baner adverent on our site. As pa oftbir servce, diey wil plac a sete cokie on your computer. We wil nol provie ii thir-p ad se wit any of youcollec Pcrly ldefiable Infomilion or infonnon ab your pu. We and our thir pa ad servr wil an us Non-Peronaly Idetible Infonnion abut you, such as your IP ades, browser ty, th seer your computr is loged onto, th ar co an zj co asiat wid your serv and whed you re to a parcul ad Oth adver ma alo pla baer ad on our siic in the sae maer as above, but we wil no dislose any Pernaly Identifiable Inforon lD th 8. Privacy Policies or Third Part SUes Except as oterise discus in this Pnvacy Policy, th doCIl only addes the use and disclosur of informon we collecllTm you. Othr site acceble thug our site have their own priva policies and data collecion, us and diclosur price. Plea COult each site's pnvacy policy. We ar noi resposible for di policies or pnicc of third paes. AdditiOOllY. other coies whch pla advesin on our site may colle informion abl you wben you view or c1icl on their advesin thugh the lIe of cookies, We caot contrl collection of Ìloriou. You shuld conta th advcn direly if you have any quetions abut thir us ofthis the informúon tht they collect . 9. Misineous Privacy Isues You mus be It leat i B yea old to have our peision to use diis si. Our policy is that we do not knowily collec us or dislos Pernally IdCltile Informn ab visitors !b ar un I B yea of age. You shld also be awar th when Pernay Idenble Informion is voluntaily disose (i.e. you _, emil ad, et) in the discusion for or oter public ar on diis site Cht informon, a1oo¡ with any informn dislosed in you counicaiion, ca be collect and us by thd paes and may rcli in unolicite meses &o third paies. Suc acuvities ar bend our control an this Policy does DOt aply to suc informtion Any submissions to cht roms or other public ar on th sit Ir acc with the undersdin th th ar acible to all third pa. If you do not wanl your commClts to be viewed by diird paies, yo ar advise DOl to ma any submissions. Uliimately. you ar solely rensible for maintaing the seec of your paord aaor accun infonniou. Plea be caful and ~ponsible whenve you' auliDe, If you have any quesions abut this Privacy Policy, the pra oftbs siie, or your dealing wi this site, pleae conta us by sending a Icner lo: i 23inkets.com All: Privacy Compliáce Offcer 40fS EXIBIT B VC -002021 27 12J4f200 1:29 PM Case: 1:10-cv-00367 Document #: 1-4 Filed: 01/19/10 Page 30 of 30 PageID #:60 Case 2:08-cv-01711-MMM-RZ Document 1 Filed 03/13/2008 Page 30 of 34 Prter Ink Cadge Laer Toi. Rib an Int Prnt Ca.. fic:IIIE:~020No%20S%20æi/0206riter'Yo20lnk%I20Ci1.., 25 E. Ea Strt Simi Valley. CA 93065 You nøy al coDl us by emil atpnva123úici.coll -, L____i · §I y-=~-1L-rn:~~: "c.~..Ji-=-! tJre Shipin Ger &; CoDdiiot: by Oiec tJEmaii CUme ~-. Jcusro Se~ r# Re Ç1es t1u Orc~ ~erice J-~~~~:~___~:::_,=~ldU_ ~::~ Bizc G Cus Certed u,:nr n\ C:Õl6 ¡If ,~ Vis Ac Male 123iietco 25 E. Ea St. Simi Valley. CA 93065 IMl;", I CCoyr 1998-200 123inet,co I Sito Feeac Acc Dis Acte Am Ex Accayp Accep . New! -r_lIplng d.. na ippy II non-l -- Itms _ st i 5t ciil Al gil "'il _ -... im ire subJ II IV.a il . i iJlnkllrs reoees ii rtt lD dl_ th tem '" any Al -. or __ with nc. .. Apple-, 1i-, iii~, I.e, Can-, Epe, Xerox- ... DI Il In"" ... lII Iovo .. reis tnemrt or thir re.. ow Wh h... no i_li - Dr ..~. ..y __ment or th in Clr _nr. ii by iZ3nlcot_, An _ ør. bn.. .. "'_ei deltlci fo i nciK airtit h - .-, fD PU'l1 ci de amblll. c: ere not va lo OE ceii, II in or _ pruc. UPS i"" th UP Innd .. trdemet th .. us _ pellS by th __. Unlb PII Selc of Am, 11 Al rtha ..ec. VC -002022 50rs EXHBIIT B 28 12141200 I :29 PM