Henry Nolan Kelly was one of the individuals targeted by the FTC during its March Anti-Spam Madness. Kelly settled with the FTC this week in a stipulated final order that prohibits him from having anything to do with sending unwanted text messages or misleading consumers about winning gifts or prizes through text messages. The order also imposes a fine of $60,950, which is suspended due to Kelly’s inability to pay the fine.
It’s clear that the FTC means business when it comes to cracking down on text message spam shams. Sellers are cautioned to use care when offering anything “free” to consumers. As we’ve blogged about here and here, the FTC has guidelines concerning the use of the term “free.” The guidelines warn that any offer of “free” merchandise or services must be made with care so as not to mislead or deceive customers. Based on the complaints arising out of the alleged spam shams, we have a feeling that the Commission won’t shy away from bringing unfair practice charges against those who don’t comply.