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CALIFORNIA BUSINESS AND PROFESSIONS CODE
DIVISION 7, PART 3, CHAPTER 1
ARTICLE 1.8.  Restrictions On Unsolicited Commercial E-mail Advertisers
(added by S.B. 186 (2003), approved September 23, 2003)




 17529.  The Legislature hereby finds and declares all of the following: 

    (a) Roughly 40 percent of all e-mail traffic in the United States is comprised of 
unsolicited commercial e-mail advertisements (hereafter spam) and industry experts 
predict that by the end of 2003 half of all e-mail traffic will be comprised of spam. 

    (b) The increase in spam is not only an annoyance but is also an increasing drain 
on corporate budgets and possibly a threat to the continued usefulness of the most 
successful tool of the computer age. 

    (c) Complaints from irate business and home-computer users regarding spam have 
skyrocketed, and polls have reported that 74 percent of respondents favor making mass 
spamming illegal and only 12 percent are opposed, and that 80 percent of respondents 
consider spam very annoying. 

    (d) According to Ferris Research Inc., a San Francisco consulting group, spam will 
cost United States organizations more than ten billion dollars ($10,000,000,000) this 
year, including lost productivity and the additional equipment, software, and manpower 
needed to combat the problem. California is 12 percent of the United States population 
with an emphasis on technology business, and it is therefore estimated that spam costs 
California organizations well over 1.2 billion dollars ($1,200,000,000). 

    (e) Like junk faxes, spam imposes a cost on users, using up valuable storage space 
in e-mail inboxes, as well as costly computer band width, and on networks and the 
computer servers that power them, and discourages people from using e-mail. 

    (f) Spam filters have not proven effective. 

    (g) Like traditional paper "junk" mail, spam can be annoying and waste time, but 
it also causes many additional problems because it is easy and inexpensive to create, 
but difficult and costly to eliminate. 

    (h) The "cost shifting" from deceptive spammers to Internet business and e-mail 
users has been likened to sending junk mail with postage due or making telemarketing 
calls to someone's pay-per-minute cellular phone. 

    (i) Many spammers have become so adept at masking their tracks that they are 
rarely found, and are so technologically sophisticated that they can adjust their 
systems to counter special filters and other barriers against spam and can even 
electronically commandeer unprotected computers, turning them into spam-launching 
weapons of mass production. 

    (j) There is a need to regulate the advertisers who use spam, as well as the 
actual spammers, because the actual spammers can be difficult to track down due to 
some return addresses that show up on the display as "unknown" and many others being 
obvious fakes and they are often located offshore. 

    (k) The true beneficiaries of spam are the advertisers who benefit from the 
marketing derived from the advertisements. 

    (l) In addition, spam is responsible for virus proliferation that can cause 
tremendous damage both to individual computers and to business systems. 

    (m) Because of the above problems, it is necessary that spam be prohibited and 
that commercial advertising e-mails be regulated as set forth in this article.



 17529.1.  For the purpose of this article, the following definitions apply: 

    (a) "Advertiser" means a person or entity that advertises through the use of 
commercial e-mail advertisements. 

    (b) "California electronic mail address" or "California e-mail address" means any 
of the following: 

    (1) An e-mail address furnished by an electronic mail service provider that sends 
bills for furnishing and maintaining that e-mail address to a mailing address in this 
state. 

    (2) An e-mail address ordinarily accessed from a computer located in this state. 

    (3) An e-mail address furnished to a resident of this state. 

    (c) "Commercial e-mail advertisement" means any electronic mail message initiated 
for the purpose of advertising or promoting the lease, sale, rental, gift offer, or 
other disposition of any property, goods, services, or extension of credit. 

    (d) "Direct consent" means that the recipient has expressly consented to receive 
e-mail advertisements from the advertiser, either in response to a clear and 
conspicuous request for the consent or at the recipient's own initiative. 

    (e) "Domain name" means any alphanumeric designation that is registered with or 
assigned by any domain name registrar as part of an electronic address on the 
Internet. 

    (f) "Electronic mail" or "e-mail" means an electronic message that is sent to an 
e-mail address and transmitted between two or more telecommunications devices, 
computers, or electronic devices capable of receiving electronic messages, whether or 
not the message is converted to hard copy format after receipt or is viewed upon 
transmission or stored for later retrieval. "Electronic mail" or "e-mail" includes 
electronic messages that are transmitted through a local, regional, or global computer 
network. 

    (g) "Electronic mail address" or "e-mail address" means a destination, commonly 
expressed as a string of characters, to which electronic mail can be sent or 
delivered. An "electronic mail address" or "e-mail address" consists of a user name or 
mailbox and a reference to an Internet domain. 

    (h) "Electronic mail service provider" means any person, including an Internet 
service provider, that is an intermediary in sending or receiving electronic mail or 
that provides to end users of the electronic mail service the ability to send or 
receive electronic mail. 

    (i) "Initiate" means to transmit or cause to be transmitted a commercial e-mail 
advertisement or assist in the transmission of a commercial e-mail advertisement by 
providing electronic mail addresses where the advertisement may be sent, but does not 
include the routine transmission of the advertisement through the network or system of 
a telecommunications utility or an electronic mail service provider through its 
network or system. 

    (j) "Incident" means a single transmission or delivery to a single recipient or to 
multiple recipients of unsolicited commercial e-mail advertisement containing 
substantially similar content. 

    (k) "Internet" has the meaning set forth in paragraph (6) of subdivision (e) of 
Section 17538. 

    (l) "Preexisting or current business relationship," as used in connection with the 
sending of a commercial e-mail advertisement, means that the recipient has made an 
inquiry and has provided his or her e-mail address, or has made an application, 
purchase, or transaction, with or without consideration, regarding products or 
services offered by the advertiser. 

    Commercial e-mail advertisements sent pursuant to the exemption provided for a 
preexisting or current business relationship shall provide the recipient of the 
commercial e-mail advertisement with the ability to "opt-out" from receiving further 
commercial e-mail advertisements by calling a toll-free telephone number or by sending 
an "unsubscribe" e-mail to the advertiser offering the products or services in the 
commercial e-mail advertisement. This opt-out provision does not apply to recipients 
who are receiving free e-mail service with regard to commercial e-mail advertisements 
sent by the provider of the e-mail service. 

    (m) "Recipient" means the addressee of an unsolicited commercial e-mail 
advertisement. If an addressee of an unsolicited commercial e-mail advertisement has 
one or more e-mail addresses to which an unsolicited commercial e-mail advertisement 
is sent, the addressee shall be deemed to be a separate recipient for each e-mail 
address to which the e-mail advertisement is sent. 

    (n) "Routine transmission" means the transmission, routing, relaying, handling, or 
storing of an electronic mail message through an automatic technical process. "Routine 
transmission" shall not include the sending, or the knowing participation in the 
sending, of unsolicited commercial e-mail advertisements. 

    (o) "Unsolicited commercial e-mail advertisement" means a commercial e-mail 
advertisement sent to a recipient who meets both of the following criteria: 

    (1) The recipient has not provided direct consent to receive advertisements from 
the advertiser. 

    (2) The recipient does not have a preexisting or current business relationship, as 
defined in subdivision (l), with the advertiser promoting the lease, sale, rental, 
gift offer, or other disposition of any property, goods, services, or extension of 
credit.



 17529.2.  Notwithstanding any other provision of law, a person or entity may not do 
any of the following: 

    (a) Initiate or advertise in an unsolicited commercial e-mail advertisement from 
California or advertise in an unsolicited commercial e-mail advertisement sent from 
California. 

    (b) Initiate or advertise in an unsolicited commercial e-mail advertisement to a 
California electronic mail address, or advertise in an unsolicited commercial e-mail 
advertisement sent to a California electronic mail address. 

    (c) The provisions of this section are severable. If any provision of this section 
or its application is held invalid, that invalidity shall not affect any other 
provision or application that can be given effect without the invalid provision or 
application.



 17529.3.  Nothing in this article shall be construed to limit or restrict the 
adoption, implementation, or enforcement by a provider of Internet access service of a 
policy of declining to transmit, receive, route, relay, handle, or store certain types 
of electronic mail messages.



 17529.4.  (a) It is unlawful for any person or entity to collect electronic mail 
addresses posted on the Internet if the purpose of the collection is for the 
electronic mail addresses to be used to do either of the following: 

    (1) Initiate or advertise in an unsolicited commercial e-mail advertisement from 
California, or advertise in an unsolicited commercial e-mail advertisement sent from 
California. 

    (2) Initiate or advertise in an unsolicited commercial e-mail advertisement to a 
California electronic mail address, or advertise in an unsolicited commercial e-mail 
advertisement sent to California electronic mail address. 

    (b) It is unlawful for any person or entity to use an electronic mail address 
obtained by using automated means based on a combination of names, letters, or numbers 
to do either of the following: 

    (1) Initiate or advertise in an unsolicited commercial e-mail advertisement from 
California, or advertise in an unsolicited commercial e-mail advertisement sent from 
California. 

    (2) Initiate or advertise in an unsolicited commercial e-mail advertisement to a 
California electronic mail address, or advertise in an unsolicited commercial e-mail 
advertisement sent to a California electronic mail address. 

    (c) It is unlawful for any person to use scripts or other automated means to 
register for multiple electronic mail accounts from which to do, or to enable another 
person to do, either of the following: 

    (1) Initiate or advertise in an unsolicited commercial e-mail advertisement from 
California, or advertise in an unsolicited commercial e-mail advertisement sent from 
California. 

    (2) Initiate or advertise in an unsolicited commercial e-mail advertisement to a 
California electronic mail address, or advertise in an unsolicited commercial e-mail 
advertisement sent to a California electronic mail address.



 17529.5.  It is unlawful for any person or entity to advertise using a commercial 
e-mail advertisement either sent from California or sent to a California electronic 
mail address under any of the following circumstances: 

    (a) The commercial e-mail advertisement contains or is accompanied by a third 
party's domain name without the permission of the third party. 

    (b) The commercial e-mail advertisement contains or is accompanied by falsified, 
misrepresented, obscured, or forged header information. This paragraph does not apply 
to truthful information used by a third party who has been lawfully authorized by the 
advertiser to use that information. 

    (c) The commercial e-mail advertisement has a subject line that a person knows 
would be likely to mislead a recipient, acting reasonably under the circumstances, 
about a material fact regarding the contents or subject matter of the message.



 17529.8.  (a) (1) In addition to any other remedies provided by this article or by 
any other provisions of law, a recipient of an unsolicited commercial e-mail 
advertisement transmitted in violation of this article, an electronic mail service 
provider, or the Attorney General may bring an action against an entity that violates 
any provision of this article to recover either or both of the following: 

    (A) Actual damages. 

    (B) Liquidated damages of one thousand dollars ($1,000) for each unsolicited 
commercial e-mail advertisement transmitted in violation of Section 17529.2, up to one 
million dollars ($1,000,000) per incident. 

    (2) The recipient, an electronic mail service provider, or the Attorney General, 
if the prevailing plaintiff, may also recover reasonable attorney's fees and costs. 

    (3) However, there shall not be a cause of action against an electronic mail 
service provider that is only involved in the routine transmission of the unsolicited 
commercial e-mail advertisement over its computer network. 

    (b) If the court finds that the defendant established and implemented, with due 
care, practices and procedures reasonably designed to effectively prevent unsolicited 
commercial e-mail advertisements that are in violation of this article, the court 
shall reduce the liquidated damages recoverable under subdivision (a) to a maximum of 
one hundred dollars ($100) for each unsolicited commercial e-mail advertisement, or a 
maximum of one hundred thousand dollars ($100,000) per incident.



 17529.9.  The provisions of this article are severable. If any provision of this 
article or its application is held invalid, that invalidity shall not affect any other 
provision or application that can be given effect without the invalid provision or 
application.





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CALIFORNIA BUSINESS AND PROFESSIONS CODE
SECTION 17538.45
(as amended by S.B. 186 (2003), approved September 23, 2003)


 17538.45.  (a) For purposes of this section, the following words have the following 
meanings: 

    (1) "Electronic mail advertisement" means any electronic mail message, the 
principal purpose of which is to promote, directly or indirectly, the sale or other 
distribution of goods or services to the recipient. 

    (2) "Unsolicited electronic mail advertisement" means any electronic mail 
advertisement that meets both of the following requirements: 

    (A) It is addressed to a recipient with whom the initiator does not have an 
existing business or personal relationship. 

    (B) It is not sent at the request of or with the express consent of the recipient. 

    (3) "Electronic mail service provider" means any business or organization 
qualified to do business in California that provides registered users the ability to 
send or receive electronic mail through equipment located in this state and that is an 
intermediary in sending or receiving electronic mail. 

    (4) "Initiation" of an unsolicited electronic mail advertisement refers to the 
action by the initial sender of the electronic mail advertisement. It does not refer 
to the actions of any intervening electronic mail service provider that may handle or 
retransmit the electronic message. 

    (5) "Registered user" means any individual, corporation, or other entity that 
maintains an electronic mail address with an electronic mail service provider. 

    (b) No registered user of an electronic mail service provider shall use or cause 
to be used that electronic mail service provider's equipment located in this state in 
violation of that electronic mail service provider's policy prohibiting or restricting 
the use of its service or equipment for the initiation of unsolicited electronic mail 
advertisements. 

    (c) No individual, corporation, or other entity shall use or cause to be used, by 
initiating an unsolicited electronic mail advertisement, an electronic mail service 
provider's equipment located in this state in violation of that electronic mail 
service provider's policy prohibiting or restricting the use of its equipment to 
deliver unsolicited electronic mail advertisements to its registered users. 

    (d) An electronic mail service provider shall not be required to create a policy 
prohibiting or restricting the use of its equipment for the initiation or delivery of 
unsolicited electronic mail advertisements. 

    (e) Nothing in this section shall be construed to limit or restrict the rights of 
an electronic mail service provider under Section 230(c)(1) of Title 47 of the United 
States Code, or any decision of an electronic mail service provider to permit or to 
restrict access to or use of its system, or any exercise of its editorial function. 

    (f) (1) In addition to any other action available under law, any electronic mail 
service provider whose policy on unsolicited electronic mail advertisements is 
violated as provided in this section may bring a civil action to recover the actual 
monetary loss suffered by that provider by reason of that violation, or liquidated 
damages of fifty dollars ($50) for each electronic mail message initiated or delivered 
in violation of this section, up to a maximum of twenty-five thousand dollars 
($25,000) per day, whichever amount is greater. 

    (2) In any action brought pursuant to paragraph (1), the court may award 
reasonable attorney's fees to a prevailing party. 

    (3) (A) In any action brought pursuant to paragraph (1), the electronic mail 
service provider shall be required to establish as an element of its cause of action 
that prior to the alleged violation, the defendant had actual notice of both of the 
following: 

    (i) The electronic mail service provider's policy on unsolicited electronic mail 
advertising. 

    (ii) The fact that the defendant's unsolicited electronic mail advertisements 
would use or cause to be used the electronic mail service provider's equipment located 
in this state. 

    (B) In this regard, the Legislature finds that with rapid advances in Internet 
technology, and electronic mail technology in particular, Internet service providers 
are already experimenting with embedding policy statements directly into the software 
running on the computers used to provide electronic mail services in a manner that 
displays the policy statements every time an electronic mail delivery is requested. 
While the state of the technology does not support such a finding at present, the 
Legislature believes that, in a given case at some future date, a showing that notice 
was supplied via electronic means between the sending and receiving computers could be 
held to constitute actual notice to the sender for purposes of this paragraph. 

    (4) (A) An electronic mail service provider who has brought an action against a 
party for a violation subject to Section 17529.8 shall not bring an action against 
that party under this section for the same unsolicited commercial electronic mail 
advertisement. 

    (B) An electronic mail service provider who has brought an action against a party 
for a violation of this section shall not bring an action against that party under 
Section 17529.8 for the same unsolicited commercial electronic mail advertisement.



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