FTC Bans “Free iPhone” and “Gift Card” Text Spam Marketers

The Federal Trade Commission (“FTC”) has announced a third settlement agreement in the Commission’s cases against the operators of massive text spam operations. A group of affiliate marketers has agreed to settle FTC charges of unfair and deceptive practices and are banned from future text spamming. The settlement also requires the defendants to cooperate with the FTC in any future investigations. In March, alleging that collectively more than 180 million unsolicited text messages were sent, the FTC filed eight complaints against 29 people and companies. The crackdown was a result of over 20,000 complaints from consumers and focused on marketers sending spam promises of free gift cards through text messages. The complaint against Ecommerce Merchants, LLC, which did business as Superior Affiliate Management, and its principals Cresta Pillsbury, Jan-Paul Diaz, Joshua Brewer and Daniel Stanitski, alleges that the Ecommerce Merchants sent at least 30 million unsolicited text messages in the past year, and that the company did not always honor opt-out requests. The charges also include allegations that the defendants operated a network of affiliates who sent out text messages on their behalf.