Azoogle settled the ringtone investigation for $1 million dollars
News Release - Attorney General McCollum Unveils New Cyberfraud Task Force
Court Filing:
http://myfloridalegal.com/webfiles.nsf/WF/KGRG-78QMWR/$file/Azoogle-AVC10-31-07.pdf
$1 million - easy business write off. One would have to assume their on the decline - considering their shady email background (Spamhaus listings), their boot from CJ (eBay), dozens of layoffs, denial of a second round of VC financing, and now this. Interesting note: Joe and Alex hired former Gambino crime family attorneys to defend them in this investigation.
The settlement also serves as a wake-up call to the rest of the players in the ringtone industry. The bottom line is that carriers, aggregators, ringtone providers, and affiliate networks ARE responsible and WILL be accountable for their actions. It's not enough for an affiliate network to hide affiliates (and themselves) behind an "ID." And although the "Florida" attorney general's office settled - it doesn't exclude other state's from further action. It's not unusual to see other states jump in on these kinda things.
Unfortunately, many players in the industry continue to be non-compliant. For example, COPEAC, also under investigation:
Free Cingular Ringtones - Ringtones - Bonus Ringtones, Ring Tone, Ring Back & Ringers
Customized page made (made by WickedFire member: EduardoM3) - No pricing, No terms/conditions, and "Free"
Traffix now owned by New Motion, Inc (Mobile Sidewalk) uses "Free" in all their PPC ads.
When you see these kinda things it's no wonder the ringtone space is being hit with new rules and regulations. All the players in the industry are going to have to do a better job of monitoring and enforcement because ignorance of the law is no excuse.
News Release - Attorney General McCollum Unveils New Cyberfraud Task Force
Court Filing:
http://myfloridalegal.com/webfiles.nsf/WF/KGRG-78QMWR/$file/Azoogle-AVC10-31-07.pdf
$1 million - easy business write off. One would have to assume their on the decline - considering their shady email background (Spamhaus listings), their boot from CJ (eBay), dozens of layoffs, denial of a second round of VC financing, and now this. Interesting note: Joe and Alex hired former Gambino crime family attorneys to defend them in this investigation.
The settlement also serves as a wake-up call to the rest of the players in the ringtone industry. The bottom line is that carriers, aggregators, ringtone providers, and affiliate networks ARE responsible and WILL be accountable for their actions. It's not enough for an affiliate network to hide affiliates (and themselves) behind an "ID." And although the "Florida" attorney general's office settled - it doesn't exclude other state's from further action. It's not unusual to see other states jump in on these kinda things.
Unfortunately, many players in the industry continue to be non-compliant. For example, COPEAC, also under investigation:
Free Cingular Ringtones - Ringtones - Bonus Ringtones, Ring Tone, Ring Back & Ringers
Customized page made (made by WickedFire member: EduardoM3) - No pricing, No terms/conditions, and "Free"
Traffix now owned by New Motion, Inc (Mobile Sidewalk) uses "Free" in all their PPC ads.
When you see these kinda things it's no wonder the ringtone space is being hit with new rules and regulations. All the players in the industry are going to have to do a better job of monitoring and enforcement because ignorance of the law is no excuse.