UPDATE 1-NY, Texas settle with Tagged.com over e-mails

Tue Nov 10, 2009 1:55am GMT
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* Tagged.com pays $750,000, overhauls registration

* Company settles with New York, Texas

* Cuomo alleges 60 million spam emails (Adds Texas settlement, paragraphs 1-3)

By Jonathan Stempel

NEW YORK, Nov 9 (Reuters) - The operator of Tagged.com will pay $750,000 and overhaul its practices to resolve charges that the social networking site tricked members into providing personal details to lure new members and send out tens of millions of spam emails.

Tagged Inc will pay $500,000 under an agreement with New York Attorney General Andrew Cuomo, and $250,000 under a separate accord with Texas Attorney General Greg Abbott.

Cuomo said Tagged would also provide clear disclosures when seeking access to new users' email contacts, and would be unable to access those contacts or send messages on behalf of Tagged.com members without permission.

In July, Cuomo had threatened to sue the company, which has offices in San Francisco, for deceptive marketing practices and invasion of privacy.

"Unsuspecting users had no idea that Tagged had hijacked the e-mail addresses of their colleagues, families and friends for the purpose of blasting them with spam," Cuomo said in a statement on Monday. "This agreement holds the company accountable for its invasion of privacy and puts the proper safeguards in place to keep it from happening again."  Continued...

 

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