Bidz.com Makes Out Good In FTC Ruling Over Email Marketing Practices


John Vinson Posted by John Vinson

After a nearly year long dispute over their email practices, Bidz.com has been cleared by the FTC who will no longer be investigating the original claim against Bidz. Bidz.com is an online retailer who specializes in jewelry.

In May 2009, Bidz was given a Civil Investigation Demand for Information from FTC. The demand was given because of an investigation the FTC was conducting regarding the ‘Assault of Non-Solicited Pornography and Marketing Act of 2003′. The act is quoted as, “relating to the advertising, marketing, and promotion of the Company and its products through the use of emails. The focus of the investigation was failure to honor opt-out requests by individuals who wanted to stop receiving commercial email messages sent by or on behalf of the Company.”

David Zinberg, the Company’s Chief Executive Officer, is happy with the outcome of the investigation, “We are pleased with the decision of the FTC staff, as we have cooperated fully throughout the investigation.”

“We take very seriously our, and our marketing partners’, obligations relating to email marketing. This favorable result will allow us to concentrate on our core business.”

The FTC’s decision follows other good news for Bidz.com concerning an attempted class action lawsuit in California. The courts denied a request for class action certification, which stated that Bidz engaged in unfair business practices. Upon the decision, Bidz settled with the plaintiffs for a lower amount than what the suit would have listed. The lawsuit was related to the FTC investigation, as it was attempted because of failing to honor users’ opt-out requests.

While most people who have difficult unsubscribe processes won’t be sued or investigated, this story proves a point which can be learned by all email marketers. When running an opt out system, be sure to allow for an easy unsubscribe. You might not get a lawsuit thrown your way, but it will cause a backlash in brand image. I’m sure Bidz will go through some struggles from disgruntled users.

I recently wrote of the risks concerning aggressive opt-out campaigns, and some of the pitfalls one can run into. Trust is your most valuable ally in an email marketing campaign, you would do well not to turn it into an enemy.


About the Author: John is a staff writer for WebProNews.