14 August 2013

Spamming: Internal Affairs v. Mansfield



An Australian spammer has been ordered to pay a $95,000 administrative fine following an illegal email marketing campaign for a business called Business Seminars NZ.  This follows a harsher penalty imposed in Australia for similar spam advertising where the same spammer was fined one million dollars.
Internal Affairs in New Zealand took action against Perth businessman Wayne Robert Mansfield after receiving some 50 complaints from members of the public over a five month period in 2010 about unsolicited emails advertising business seminars.
Evidence was given that in the region of one million unsolicited email messages were sent to New Zealand addresses promoting a series of business seminars on social media marketing.  Internal Affairs identified that seminars were advertised at $199 a seat, to be held at various locations around the country, such as the Langham hotel in Auckland.  The seminar schedule indicated four seminars might be held per day at each venue.
The Unsolicited Electronic Messages Act 2007 prohibits spam.  Spammers face administrative fines, not criminal prosecutions.  Identified spammers face a court-ordered fine unless they can prove on the balance of probabilities that recipients consented to the emails in question.
Spammers not only annoy recipients, they clog up the internet, slowing traffic and reducing productivity.  The court was told an estimated 120 billion spam emails are sent worldwide every day.
Mr Mansfield did not appear in court.  Evidence was given that he had initially responded to Internal Affairs requests for information, but then stopped.
Justice Wylie said evidence indicated there was no consent given for the emails sent.  Five databases were used for the advertising campaigns.  The number of addresses on each database ranged between 66,700 and 80,700.  Mr Mansfield admitted buying email addresses from a third party.  An analysis of some 19,200 addresses from the databases identified that 14% were recipients inherently unlikely to consent to any emails: being not for profit sites, technical addresses used for website administration or the likes of military email addresses.
Mr Mansfield had conceded to Internal Affairs that his emails were being blocked as spam by various internet service providers.  He had changed his IP address to try and circumvent this restriction.    
The 2007 Act is modelled on Australian legislation, but with lower maximum penalties.  Mr Mansfield featured in Australian litigation from 2006 where he was fined one million dollars for a spam campaign in which 70 million emails were sent to some five million recipients.
Internal Affairs v. Mansfield – High Court, Auckland (14.08.13)
13.021