OTTAWA - The Competition Bureau has warned a ring of 450 email spammers to stop sending a chain letter that violates the Competition Act on at least two fronts.

The most serious violation is the false claim that the program is endorsed by the U.S. Federal Trade Commission. Under the Competition Act it is illegal to make false claims to promote a business.

People sending this chain letter further violate the Act in their failure to back up income claims with earnings reports of typical participants. In other words, if a chain letter promises that you can earn $100,000 by opting into their program, this claim must be supported with figures earned by the average participant.

The chain letter in question offers high returns for little effort. People behind the ring make their money from the "recruitment fees" rather than the sale of actual products.

"Through this initiative, the Bureau and its law enforcement partners are sending a strong message to scammers that deceptive spamming is illegal," said Raymond Pierce, Deputy Commissioner of the Bureau's Fair Business Practices Branch.

The warning was issued in conjunction with Northwest Netforce, an international watchdog organization intent on eliminating "spam" and other forms of online fraud. Among the members of this group are the U.S. Federal Trade Commission and legal bodies in nine American states and three Canadian provinces. More information can be found at www.ftc.gov/spam.

The Commissioner of Competition has advised that anyone involved in such a venture to review their legal responsibilities and make attempts to avoid action by the Bureau. You can find the Competition Bureau at http://strategis.ic.gc.ca/SSG/ct01250e.html.

 

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