Designer Skin LLC v. S & L Vitamins, Inc., et al.
Telephone Consumer Protection Act - Internet Library of Law and Court Decisions - Updated November 27, 2007
Case No. 06-CV-105-D (D. Wy., September 28, 2007)
Court finds defendants guilty of engaging in unfair business practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. Section 45(a), by obtaining and selling confidential customer phone records without the affected customers’ authorization. The Court found that defendant Abika.com arranged for the purchase of these phone records from third party vendors, which they subsequently resold via their website to third parties. Illegal means were used by these vendors to obtain the confidential phone records, a fact of which, the Court found, defendant was aware.
In reaching this result, the Court rejected defendants’ claim that they were immunized from suit by application of Section 230 of the Communications Decency Act (“CDA”). Defendants attempted to come within the ambit of the CDA by casting themselves as a search engine that put those seeking to purchase phone records in touch with ‘researchers’ seeking to sell them. This characterization of their conduct was rejected by the Court. The Court held that CDA immunity was not available to defendants because the claims at issue did not seek to treat them as the publisher of information, a prerequisite to such immunity. Rather, they arose out of defendants’ purchase and resale of confidential information to third parties that was obtained through illegal means. The Court further held that CDA immunity was not available because of defendants’ role in causing the information at issue to be obtained. As such, defendants were held to have ‘participated in the creation or development of the information, and thus do not qualify for Section 230 immunity.’
Finally, the Court rejected defendants’ claim that the FTC was equitably estopped by its prior failure to prosecute phone record brokers from doing so here. Such alleged inactivity was insufficient to estop the government from enforcing the laws of the land.
1 CA-CV 02-0701 (Arz. Crt. App., September 20, 2005)
Court holds defendant's unauthorized transmission of commercial e-mails automatically converted by recipient's cell phone carrier into text messages runs afoul of the Federal Telephone Consumer Protection Act, 47 U.S.C. §227 ("TCPA"). Such conduct constitutes a prohibited use of an "automatic dialing system" to make a "call" to a "telephone number assigned to a cellular telephone service." 47 U.S.C. §227 (b)(1)(A)(iii). The Court further held that the TCPA was neither preempted by the CAN-SPAM Act's regulation of such conduct, nor an unconstitutional regulation of speech that violated the First Amendment.