/ June 30, 2008

Don’t Mess With MySpace

MySpace found themselves victorious again last week after being awarded a total of $6 million after settling arguments over alleged spamming techniques. The social networking agent went into arbitration with marketing partner Media Breakaway, on charges that they were involved in phishing scams against MySpace members. Phishing involves the impersonation of a legitimate company in order to obtain confidential information that many would otherwise not provide. It was alleged that Media Breakaway used these methods to obtain information about MySpace members and then continually solicit them with advertisements.
Faced with ever increasing competition and formidable opponent Facebook keeping in step, MySpace has been extremely cautious as of late when tending to membership satisfaction. This has led to quite the crackdown on the amount of spam MySpace allows to slip through the cracks. Just in the past two months, MySpace has won over $230 million in damages from a number of marketing companies charged with not following proper procedures related to what can and cannot be sent out to members. While Media Breakaway placed blame on independent contractors hired to send out the messages, both MySpace and the arbitrator for the case did not view this as a valid excuse for the company’s behavior. It appears that when it comes to spam, marketing agencies should be ready to stop or be ready to pay.

Source: MSNBC.com

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