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Free iPodYou know those banner ads that claim you can get an iPod or an Xbox 360 or any number of other electronics for free just by filling out a survey? We’ve seen them absolutely everywhere, including our inbox (and our spam folder shortly thereafter). The Federal Trade Commission has seen them, too, and they don’t like them any more than we do. Adteractive, one of the most egregious offenders in the “free” ring of advertising, has been fined $650,000 for violating the CAN-SPAM Act.

The CAN-SPAM Act, introduced in 2003, requires fines and possible prison time for those who are found to be guilty of sending non-solicited e-mails. Adteractive, which runs FreeGiftWorld.com and SamplePromotionsGroup.com, was definitely guilty, but interestingly one of the FTC Commissioners voted against applying this fine. That’s because he thought $650,000 wasn’t enough — a dissenting opinion we agree with.

The FTC also slammed the company for its misleading advertising, where “free” products are often available only after people fill out multiple credit card applications or sign contracts for satellite television and the like. Buyer beware, especially if it’s “free”.

From BetaNews

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