Washington-based adult website operator obtained a defense verdict in an action brought by the FTC who alleged that Impulse Media Group, Inc. violated the CAN-SPAM Act by virtue of the acts of its affiliate marketers. In addition to the obvious impact in the affiliate industry, the verdict could impact other actions in which the government seeks to hold companies liable for the acts of its independent agents. Here, Impulse utilized various pro-active measures to combat misconduct by its affiliate marketers. Marketers should be clear that they police how their products/services are being marketed and to terminate those that fail to comply.
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