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U.S. lawsuits seek $2.2 trillion over "junk" faxes
Yahoo News ^ | 8/22/02 | Andrew Quinn

Posted on 08/22/2002 9:03:12 PM PDT by martin_fierro

SAN FRANCISCO, Aug 22 (Reuters) - A coalition of California activists filed a jaw-dropping $2.2 trillion set of lawsuits against facsimile marketer Fax.com Thursday, saying millions of "junk faxes" are clogging the nation's fax machines, jamming communications and possibly endangering lives.

The suits, filed in both California state and federal court, seek class action status and punitive damages against privately held Fax.com, its telecommunications provider, Cox Business Services, a division of Cox Communications Inc. (NYSE:COX - News), as well as Fax.com's advertisers.

"The right to free speech stops at the entrance to my house. You are not allowed to invade my privacy and to use my resources to send your message," said Steve Kirsch, a long-time Internet entrepreneur and philanthropist who announced the lawsuits on Thursday.

The lawsuits accuse all the named companies of violating federal laws prohibiting "junk" faxes -- unsolicited advertisements or announcements which "broadcast" to millions of personal, corporate and government facsimile machines.

Fax.com, in a statement, rejected the lawsuits as "unfounded and absurd" and said it had the constitutional right to advertise by fax.

But in a decision earlier this month, the Federal Communications Commission proposed fining Fax.com $5.38 million for sending unsolicited advertisements by fax, the largest fine ever proposed for such a violation.

Lawyers in the California lawsuits said they would seek a minimum statutory remedy of $500 per fax from every advertiser who used Fax.com to send out unsolicited advertisements over the past four years.

"We believe that there are companies with substantial assets in this group. We will seek treble damages of $1,500 per unsolicited fax from Fax.com and Cox Communications," Kirsch said in a statement.

Fax.com's president, Kevin Katz, said the suit was aimed at intimidating his company's customers -- many of whom are small business owners who rely on faxing as an affordable and effective method of advertising. He also said the suits ignored the public service Fax.com performs by mass faxing missing children alerts.

"I am dismayed by the outrageous charges leveled in the suit," Katz said. "To claim that a single fax endangers lives is bizarre."

Officials at Cox Communications did not return calls seeking comment Thursday.

"WAR DIALING" HITS HOSPITALS

The lawsuits were announced at a news conference at El Camino Hospital in Mountain View, Calif., where officials said they had also been bombarded with junk fax advertisements sent by computer "war dialing" programs that can target numerous facsimile machines simultaneously.

"We have between 80 and 100 different fax machines in the hospital. In one fax machine which we monitored for a period of about four months we received over 500 junk faxes," said Mark Zielazinski, the hospital's chief information officer.

In Washington state, the University of Washington Medical Center was almost shut down by a "war dialing" assault mounted by a facsimile broadcaster.

"In the past year, Fax.com made over 1,000 telephone calls at once to the University of Washington Medical Center," center spokesman Walter Neary said, adding that the center had since joined with Washington's state attorney general to file suit against the Fax.com.

Kirsch, who founded Infoseek Corp. before it was acquired by Walt Disney Co. (NYSE:DIS - News), and now heads Propel Software Corp., has launched a Web site, www.junkfax.org, to tell people how to get off fax marketers' lists.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events; Technical; US: California
KEYWORDS: 22trillion; jnkfaxes; lawsuit
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Junk Faxers occupy the same circle of hell as SPAMers.
1 posted on 08/22/2002 9:03:13 PM PDT by martin_fierro
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Comment #2 Removed by Moderator

To: one_particular_harbour
The $2.2 trillion damages demand doesn't appear to be just dreamed up by a greedy plaintiffs' lawyer, either.

Federal law allows at least $500 for each offending FAX transmission. Those can really add up over time.

3 posted on 08/22/2002 9:10:28 PM PDT by martin_fierro
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Comment #4 Removed by Moderator

To: martin_fierro
These financial faxes arrive every day....they drive me nuts. The senders have different names but the content all looks like it is done by the same people.Where do I sign up to get in on the lawsuit?
5 posted on 08/22/2002 9:18:01 PM PDT by NetValue
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To: NetValue
Me too.I would like to get on that deal. I think I will start saving all the junk faxes I get and maybe get in on one of these lawsuits.
6 posted on 08/22/2002 9:22:58 PM PDT by Dubya
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To: martin_fierro
"The right to free speech stops at the entrance to my house. You are not allowed to invade my privacy and to use my resources to send your message," said Steve Kirsch, a long-time Internet entrepreneur and philanthropist who announced the lawsuits on Thursday.

Then don't hook a telecommunications device into a public telephone network.

7 posted on 08/22/2002 9:26:17 PM PDT by Centurion2000
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To: martin_fierro
...saying millions of "junk faxes" are clogging the nation's fax machines, jamming communications and possibly endangering lives...

Killer paper cuts!

8 posted on 08/22/2002 9:27:00 PM PDT by Sgt_Schultze
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To: Sgt_Schultze
Outlaw all spam; punishable by death! 2.2 trillion is a bit extreme though; I would expect that to hurt their case.
9 posted on 08/22/2002 9:46:15 PM PDT by Naspino
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To: Centurion2000
I don't know where you live, but there is nothing "public" about my telephone service. I pay to have me devices connected. That kinda makes it private in my book.
10 posted on 08/22/2002 10:20:43 PM PDT by Michael Barnes
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To: unix
I don't know where you live, but there is nothing "public" about my telephone service

PErsonally I agree with people about the fact that spam is pretty annoying, but bear in mind that your telephone is analagous to a mailbox. You get shopping flyers right ? It's just another minor annoyance that has to be tolerated.

11 posted on 08/23/2002 5:27:40 AM PDT by Centurion2000
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To: Centurion2000
PErsonally I agree with people about the fact that spam is pretty annoying, but bear in mind that your telephone is analagous to a mailbox. You get shopping flyers right ? It's just another minor annoyance that has to be tolerated.

The analogy breaks down here, because I'm not being forced to pay for printing up the shopping flyers in the mailbox.

12 posted on 08/23/2002 5:33:59 AM PDT by Poohbah
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To: Poohbah
Ok, so there is a point about that ... but 2.2 trillion dollars for a lawsuit ? Isn't that a little over the top ?
13 posted on 08/23/2002 5:38:49 AM PDT by Centurion2000
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To: Centurion2000
PErsonally I agree with people about the fact that spam is pretty annoying, but bear in mind that your telephone is analagous to a mailbox. You get shopping flyers right ? It's just another minor annoyance that has to be tolerated.

You are missing the main difference between a mailbox and telephone, e-mail, and fax.

With a mailbox

With telephone, fax, & e-mail


14 posted on 08/23/2002 5:47:55 AM PDT by Brookhaven
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To: Centurion2000
Providing I have the numbers correct, $2,200,000,000,000/$500=4,400,000,000 junk faxes. That's bookoo dollars in telephony services, equipment depreciation, and untold lost opportunities. 4.4bil in junk faxes.

I do think the suit has merit, but, as someone observed earlier, Cox would probably go bankrupt/file for bankruptcy far in advance of the issuance of a judgement against Fax.com/Cox Comm.

Would it be too extreme to make the following analogy? Let's say that all of a sudden the 911 ,411, local and state police departments, fire departments, etc.. telephony systems became fair game for automated telemarketing-related calls. It would cause quite a dangerous environment, would it not? What do you think?
15 posted on 08/23/2002 5:59:19 AM PDT by Freemeorkillme
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To: Freemeorkillme
I did notice that Kirsch and gang are actually seeking $1500 per fax, $1000 higher than the Cali $500 minimum per fax. That may be a bit over the top.

Kirsch, who founded Infoseek Corp. before it was acquired by Walt Disney Co. (NYSE:DIS - News), and now heads Propel Software Corp., has launched a Web site, www.junkfax.org, to tell people how to get off fax marketers' lists.

To the Winbloze users out there: Has anyone tried the Propel Accelerator for DUNs yet? I think it's rather good and at the price they want per month for it, affordable for those without broadband access. The trial version does leave some nasty little reg entries(as does most 'dose software) after uninstalling the program, so be on the look out after removal.

16 posted on 08/23/2002 6:11:07 AM PDT by Freemeorkillme
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To: Centurion2000
It's just another minor annoyance that has to be tolerated.

I respectfully disagree. If I personally call you up at your house and start bugging you, and you tell me not to call you back, and I continue to call you back, that is harrassment, and that is a crime.

It's time to apply the same rule to these businesses that we already apply to individual people.

17 posted on 08/23/2002 6:11:48 AM PDT by jpl
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To: one_particular_harbour
Problem is the dollar amount is so high that the company would go bankrupt long beforehand.

Why on God's green earth is this a "problem" (well, other than the fact that they would be subjected to bankruptcy law rather than something more deserved, such as shia'ra law).

18 posted on 08/23/2002 6:16:22 AM PDT by steve-b
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To: Centurion2000
Homeowner: The right to free speech stops at my property line. You are not allowed to invade my privacy and to use my resources to send your message.

Graffitist: Then don't put your house on a public street, d00d. [picks up spray can and resumes]

19 posted on 08/23/2002 6:18:26 AM PDT by steve-b
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To: Centurion2000
but 2.2 trillion dollars for a lawsuit? Isn't that a little over the top?

Not at all. The law sets forth a certain monetary penalty per violation; the defendant has (allegedly) sent out a certain number of spam fax spews to a certain number of targets. I know the education system has been going to hell, but people do still understand the concept of "multiplication", right?

20 posted on 08/23/2002 6:20:45 AM PDT by steve-b
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