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Arrested Customer Communications

By Ed Foster, Section The Gripelog
Posted on Fri Jan 05, 2007 at 01:23:01 AM PDT

It's getting harder and harder for businesses to communicate with their customers via e-mail. If the spammers themselves don't stop them, the measures users take to keep the spam under control very likely will. And, as one reader recently opined, when those measures include white-list vendor Spam Arrest, businesses also have to worry about their legal liability for contacting their own customers.


"A significant portion of both our orders and tech support questions are received through our e-store and by e-mail," wrote the reader, who is the president of a small software development company. "Our auto-responders and our tech support replies are not delivered to a few of our customers because they have been intercepted by Spam Arrest. Customers do not think to put our domain name on their "friends" list. Let me say that we never sell or rent our e-mail list, nor do we send out anything that even feels like spam. We send out upgrade notices. Once in two years we might send out a general commercial e-mail on our products, including an introduction of a new product."

The problem the reader encountered with Spam Arrest is one we've noted before: the intimidating terms it requires senders to accept in order to deliver the message to its intended Spam Arrest-using recipient. The terms of the Spam Arrest sender agreement remain virtually identical to those we saw over a year ago, still mandating a penalty of $2,000 for current and future messages that Spam Arrest deems unsolicited commercial e-mail. That's annoying enough if you're sending a message to a friend, but for a small businessperson like the reader it presents what he considers an unacceptable risk.

After all, the e-mail he wants to send his customers is commercial in nature, and it could appear to Spam Arrest to be unsolicited. "We have hundreds of thousands of customers," the reader wrote. "It is not practical to try and get all of them to give us specific authorization each times we want to send them upgrade notices. Further, if we were to start collecting the customer pre-approvals that Spam Arrest insists on, it could take more than ten years before we would be willing to drop customers who have not agreed to accept e-mail from us."

Since the reader doesn't know or want to know Spam Arrest, he sees no reason why he should have to trust them not to use their penalty terms to generate revenue in the future. "We cannot accept the Spam Arrest contract because we could be penalized thousands of dollars every time we notify our customers about a new version of our software. Theoretically they could save up our violations and hit us with a big charge of a hundred thousand dollars or more after a year or two with no warning that we were accruing a massive liability. If we send out a mass e-mail announcing an upgrade to 100,000 customers and 1 percent of them use Spam Arrest, and if we had validated the Spam Arrest agreement for those customers, we would have a $2,000,000 penalty on one mailing."

While the reader isn't worrying about the reference to the Can Spam Act in Spam Arrest's terms, it appears to him their definition of a violation goes beyond the law. "We won't be violating the Can Spam Act, because it allows us to send e-mail to our own customers. Spam Arrest does NOT allow us to send e-mail to our own customers without prior authorization. We cannot now go back and get hundreds of thousands of customer to give us pre-authorization. And the Spam Arrest contract requires that the customer "expressly consented to receive the message" rather than just requiring that we have customer consent to receive messages from us. How can the customer expressly consent to receive some particular message in the future? So basically it prohibits all commercial e-mail, not just what is defined as spam in law. Has anyone else objected to this abusive attempt by Spam Arrest to make new law and a gigantic profit at the same time?"

Yes, as a matter of fact, Spam Arrest is the only third party white-list vendor that I ever receive gripes about, and it's now always due to its very objectionable sender agreement. It's hard to understand why Spam Arrest believes such overreaching terms are necessary in its business unless it does plan an SCO-like move into litigation as a main source of revenue. Let's just hope that eventually its customers realize that they need to choose between doing business with Spam Arrest and doing business via e-mail with anyone else.

Got a beef of your own about how companies communicate with customers? Call my voice mail at 1 888 875-7916, or write me at Foster@gripe2ed.com and make your voice heard on the Gripe Line.

< The Worst Vendor of 2006 | An Edge to Offshore Support >


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Arrested Customer Communications | 11 comments (11 topical) | Post A Comment
You sure these guys aren't spammers?[ Reply to This ] (none / 0) (#1)
by kbecker on Fri Jan 05, 2007 at 07:18:20 AM PDT

Let's see:

The fella complaining is a small business with hundreds of thousands of customers.

It's "too much trouble" to keep track of who's opted in to receive mail and who has not. All of his customers are loyal and have "a previous business relationship", i.e., they bought something from him.

So, let's say that he's compliant with the CAN-SPAM law and actually has a valid removal address. Even though it's "too much trouble" to keep track of those hundreds of thousands of email addresses he has somewhere one might guess that he might actually remove somebody's email address upon request. Unless, of course, the next product offering he plans to deliver is really, really important. Hah.

This is spamming. Spamming is Unsolicited Commercial Email. It is considered bad practice to respond to such emails because (1) spammers lie and (2) see #1.

If he was really interested in not being considered a spammer then he would use the Confirmed Opt-In protocol. That's much like the way you run your new account creation, Mr. Foster, where if a $RANDOM_MISBEHAVING_SCUM signs up people for accounts the worst that can happen is that people get one email saying, "Here's your request. If you don't respond, you won't see another one." If one does respond, then there's a record that the emailer has saying that the respondent wants email. If not .. Well, spammers can sign up anybody. And $RANDOM_MISBEHAVING_SCUM can be anybody, like, for example, the advertising/marketing people in his own company.

One last thing. By his own admission, his company sends out email, say, several times a year. His position is that it's not often enough to be considered spamming.

At last count there were several tens of millions of companies in the U.S., never mind the rest of the world. Even with small percentages, if all those companies send out email for "invaluable opportunities" once or twice a year, one will find thousands of emails a day in ones inbox.

It's a classic case of the tragedy of the commons. This is why anti spammers take such a strong line; if email is to be preserved as a useful tool, those sending mass amounts of email had better be ready to prove that the email they send is desired, CAN-SPAM or no CAN-SPAM. From the article, the company in question looks to be short of that proof.

[ Reply to This ]



You completely missed the point.[ Parent | Reply to This ] (none / 0) (#6)
by foxyshadis1 on Fri Jan 05, 2007 at 04:31:55 PM PDT

The point is that no matter who is doing the sending, according to the posters Spam Arrent reserves for themselves the right to charge $2000 for every email, at its discretion. If they decide to charge $2000, there is no appeal. Does that make it clear, now?

Sounds like a moneymaking business to me.

It may be that the people in charge of Spam Arrest are entirely ethical and honest, and will take the utmost care to ensure that none but the most obvious spammer is charged. But businesses can't blindly assume that, since that's not what the contract says, and they could be opening themselves to charges bringing them to insolvency - without any customer having to complain.

Spam Arrest could determine that Amazon or Buy.com sent out UCE and fine them thousands of dollars, on a whim, and their 'contract' makes it perfectly legal and gives no option for appeal. Of course it's more likely they'd do it to smaller companies for more borderline businesses, if they actually were running out of money.

You mention Confirmed Opt-In - but appearently you miss the fact that the original poster does, as well. Spam Arrest goes well beyond requiring confirmed opt-in, to the point of requiring documented opt-in of every individual email message. That's not a problem for gripelog, because no messages ever get sent, but it makes the entire email system rather pointless. Or do you know for certain that isn't the case? If you have a link to their sender terms, I'd like to see it.

It is not unsolicited if someone has been a customer in the past and has never asked to be removed. What's so unethical about a company keeping in touch with customers? It only rises to unethical, unsolicited spam when the messages keep coming after you've indicated your desire to be removed.

(Infoworld is one of the only sites that has had technical problems with removing me from their lists in the past, oddly. Even so, I wouldn't want them fined $2000 every time they sent me a pricey conference invitation.)

[ Parent | Reply to This ]



Those in Marketing Have an Addiciton Problem[ Reply to This ] (none / 0) (#2)
by srynas on Fri Jan 05, 2007 at 07:20:51 AM PDT

Regretfully, we have descended into a society where everything is about the NEXT sale. Though it is scientific fact that information overload leads the human mind to ignore useless mind numbing information - the response of the marketers has been to increase the flow of information in order to "get-the-word-out".  The fact that this may be counter-productive, may to unethical, anf/or aggravate the customer is irrelevant. By analogy, marketers are simply drug addicts looking for their next fix (sale) no matter what.

[ Reply to This ]


Is that just a rant?[ Parent | Reply to This ] (none / 0) (#4)
by foxyshadis1 on Fri Jan 05, 2007 at 04:05:31 PM PDT

Surprisingly enough, most legitamite businesses give you the option on signup to opt-out (even if it's sneakily worked) and put links in their emails to get off their mailing lists; in the rare events that they're a little on the sleazy or neglectful side, they come from the same address each time, which is easily blocked. Businesses have a legitamite need to market, because there's one person who needs their service and a few who will be interested but undecided, for every so many who don't care. It's not their fault that many people will actually sign themselves up to too much information.

Given that, your complaint sounds exceedingly petty, and entirely unrelated to the issue raised here.

When they start coming from a different address or server each time, or ignore an opt-out, of course it's crossed over into spammer land.

[ Parent | Reply to This ]



Disagree[ Parent | Reply to This ] (none / 0) (#7)
by srynas on Fri Jan 05, 2007 at 06:32:19 PM PDT

You wrote "even if it's sneakily worked". Does this mean that you advocate the use of misleading wording to justify making a sale? I have opted-out of Disney spam several times, only for it to come back! When I placed an order with Intuit, I had to search for the opt-out page and totally re-enter my data. Technically, computers make it possible to avoid entering duplicate data.  Clearly it is a decision on the part of the vendor to frustrate the consumer.  If I, as a consumer, am treated this way by a business why should I have any sympathy for them?

You wrote "Businesses have a legitimate need to market". While I agree that businesses have a need to market, they do NOT have the right to intrude on the consumer by calling me up on the telephone, to sell my contact information, send spam, send credit card offers, etc. I would say that an ethical business would have an opt-in strategy, NOT an opt-out strategy.  I also advocate that any business that sells/buys my name should pay me a royalty.  After all they are trading this information to make more sales - at my expense (I paid for the computer, I pay for the phone, and my time is valuable too).


[ Parent | Reply to This ]



In my experience...[ Parent | Reply to This ] (none / 0) (#8)
by rodak on Mon Jan 08, 2007 at 01:47:19 PM PDT

...about 99% of opt-out links/procedures work properly, and I never hear from the company again.  I have a folder where I keep all emails that I've opted out of, and if I ever get another from the same company, I'll make one attempt to contact them by other means (contact info on the company web site, for example).  If I continue to receive email from them, I put them on our company's blacklist (I'm the email admin, so I can do that).

I sign up for a fair amount of online services, and I submit a lot of rebates.  In each case, I use unique email address on my personal domain name, so if I ever get spammed, I'll know which company sold me out.

In several years of doing this, I've only had to blacklist about 2 companies for failing to honor an opt-out, and have only had one company sell my address to a spammer - believe it or not, I started receiving PORN spam directed at "dell@mydomain.com".  I quickly disabled that address.

All this to say that in my experience, most legitmate businesses do indeed honor an opt-out request, and don't sell email addresses to spammers.  Of course, I deal mainly with large, well-known outfits, like Amazon, Circuit City, and the like, as well as some smaller technology outfits, like electronics supply houses and such.  I don't do business involving things like gaming, gambling, p2p, porn, championship wrestling, etc, so ymmv.

[ Parent | Reply to This ]



Clarification[ Parent | Reply to This ] (none / 0) (#9)
by foxyshadis1 on Tue Jan 09, 2007 at 08:28:03 AM PDT

I don't see how that invalidates my point in any way. Disney is a semi-spammer that should be blocked. Intuit is slimy and if not a spammer - at least it's possible to opt-out for good - still hardly an example most online businesses emulate. Almost every newsletter I have recieved follows "the rules" and don't deserve to be lumped in with them.

I believe a company should be allowed to market to customers for a limited time after a purchase with any information the customer provides them, UNLESS the customer opts-out. The act of purchasing, providing your email, CC#, address, etc, is opting in to some marketing, and I think it's perfectly ethical as long as it's restrained and infrequent. (That's why I think the monthly or semimonthly newsletter is a good format.) If it isn't, it'll be counterproductive for the company when everyone unsubscribes/blocks/ignores them anyway.

Most sites will give you an option immediately to opt out of newsletters and information sharing, a few will simply tell you they will do these things, some just won't say anything. I think the first should be mandatory, but until it is, the best you can do is weigh your need to buy from them against possible future spamming if they don't offer it.

If you can't find a communication policy and no opt-out is offered on sign-up, it's safer to not trust them and use a dummy account or skip them entirely for a site that gives you more control. You have every right to avoid untrusted merchants and sites, the way I've avoided signing up to myspace because their policies are so scary.

And I don't condone selling emails to anyone who'll pay a nickel a gross at all, it's a scummy practice. I never once said I did, and I don't believe that even constitutes "marketing" for the seller. But at least it's less egregious than companies who track and record everything they can about you and sell their entire customer databases.

[ Parent | Reply to This ]



Thanks for the response[ Parent | Reply to This ] (none / 0) (#10)
by srynas on Tue Jan 09, 2007 at 02:17:45 PM PDT

As you have pointed out, there are many ethical companies.  The problem is that the few unethical ones ruin it for us all. The Gripelog exists to expose unethical behaviour. In a sense, because we hang-out here, the problem of unethical behavior may seem worse then it really is, but then I am paranoid.:)

[ Parent | Reply to This ]


Remember[ Parent | Reply to This ] (none / 0) (#11)
by Garminski on Wed Jan 17, 2007 at 01:08:06 PM PDT

Your only paranoid when they are not out to get you. :-) And the spammers are definatly out to get us.

[ Parent | Reply to This ]


Anti customer vendor[ Reply to This ] (none / 0) (#3)
by joseten on Fri Jan 05, 2007 at 07:54:19 AM PDT

It seems to me that this vendor is complaining that his customers have signed up with a white list company with policies that he does not like. His real complaint is with his customers, since they presumably know Spam Arrests policies and chose the company for that specific reason. His argument that the company goes beyond CAN-SPAM in its contract terms is probably one of the reasons people use Spam Arrest (see previous GripeLog columns).

[ Reply to This ]


A junk marketing success story[ Reply to This ] (none / 0) (#12)
by foxyshadis1 on Thu Feb 01, 2007 at 06:58:12 PM PDT

An interesting story of investigation of spam coming from an otherwise legitimate marketing company: http://www.theregister.com/2007/02/01/t_mobile_spam/

The really interesting part: Complaining and forcing an investigation actually had results that will probably end up tightening down their email "partnering". Of course it helps that a newspaper did the complaining, but it was pushed along by a number of other people suddenly getting vocally angry.

[ Reply to This ]



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