Posted by wlansden |
Filed under good idea - bad idea
By Seema Kanwar
Good idea: Starting a successful social networking site.
Bad idea: Starting a social networking site that sends out deceptive and misleading invitations, resulting in a $750,000 penalty.
Tagged.com, a San Francisco-based social networking site was sued by the Attorneys General of New York and Texas for its deceptive and misleading invitations. The invitations stated that a friend had tagged a photo of the invitation recipient and that the recipient should sign up to see the photo. After the recipient entered his/her email address, the site would send invitation emails to everyone in the recipient’s address book, a practice known as “contact scraping.”
As per the terms of the settlement, Tagged.com will pay $500,000 in New York and $250,000 in Texas and institute reforms to its invitation process.
See the New York settlement agreement here.
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