E-Commerce Law

Facebook's CAN-SPAM Claim Survives Advertiser's Motion to Dismiss

In Facebook's seven count complaint against Defendant MaxBounty Inc. for its allegedly fraudulent advertising scheme aimed at Facebook users, the social networking giant defeated MaxBounty's motion to dismiss Facebook's claim under the CAN-SPAM Act by successfully arguing that the fake advertising pages posted by MaxBounty on the social networking site constituted "electronic mail messages" under the Act.  Facebook, Inc. v. MaxBounty, Inc., No. CV-10-4712-JF, 2011 WL 1120046 (N.D. Cal. Mar. 28, 2011).  The District Court for the Northern District of California held that Facebook sufficiently pled its claim under 15 U.S.C. § 7701 ("CAN-SPAM Act"), thereby adopting Congress' broad interpretation of the term "electronic mail message."

Pay-Per-Click Advertising Case Against Facebook Survives Motion to Dismiss

On April 22, 2010, Judge Fogel of the United States District Court for the Northern District of California, ruled on Facebook’s motion to dismiss a suit brought by Advertisers who had entered into contracts with Facebook, the popular social networking site.  In re Facebook PPC Advertising Litigation, C 09-3043 JF (HRL) (N.D. Cal. April 22, 2010).  Judge Fogel granted Facebook’s motion to dismiss, in part, and denied their motion as to certain aspects of Advertiser’s claims, allowing those claims to go forward.