FTC Takes on Text Message Spam With Eight Lawsuits

Feds going after companies that sent 180 million spam texts promising free gifts

It may be illegal to send text spam, but that hasn't stopped companies from bombarding consumers with hundreds of millions of text messages. Cracking down on the practice, the Federal Trade Commission said it has filed eight lawsuits against companies that have collectively sent more than 180 million unsolicited text messages.

In the complaints, the FTC charged 29 defendants with sending texts that promised free gift cards and steered consumers towards deceptive websites.

Spam texts have cost consumers "millions of dollars," because some cell phone plans require consumers to pay per text message or the messages force consumers beyond their monthly allotment, Steve Baker, the FTC's midwest director said during a press conference in Chicago.

In such spammy text messages, consumers are lured to websites with the promise of free gifts or prizes worth as much as $1,000 from big retailers such as Best Buy, Walmart, and Target.

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