Computer underground Digest    Sun  June 8, 1997   Volume 9 : Issue 43
                           ISSN  1004-042X

       Editor: Jim Thomas (cudigest@sun.soci.niu.edu)
       News Editor: Gordon Meyer (gmeyer@sun.soci.niu.edu)
       Archivist: Brendan Kehoe
       Shadow Master: Stanton McCandlish
       Shadow-Archivists: Dan Carosone / Paul Southworth
                          Ralph Sims / Jyrki Kuoppala
                          Ian Dickinson
       Field Agent Extraordinaire:   David Smith
       Cu Digest Homepage: http://www.soci.niu.edu/~cudigest

CONTENTS, #9.43 (Sun, June 8, 1997)

File 1--Alert: Two Anti-Spam Bills in Congress; One Good, One Bad
File 2--Text of S. 771 (Senate version of Anti-Spam bill)
File 3--Cu Digest Header Info (unchanged since 7 May, 1997)

CuD ADMINISTRATIVE, EDITORIAL, AND SUBSCRIPTION INFORMATION APPEARS IN
THE CONCLUDING FILE AT THE END OF EACH ISSUE.

---------------------------------------------------------------------

Date: Thu, 22 May 1997 17:25:22 EDT
From: John R Levine <johnl@iecc.com>
Subject: File 1--Alert: Two Anti-Spam Bills in Congress; One Good, One Bad

There are two anti-spam bills in progress now.  One is an "opt-out"
bill filed earlier this week by Sen. Murkowski of Alaska.  The other
is an "opt-in" amendment to the existing junk fax law to be filed
shortly by Rep.  Chris Smith of New Jersey.

Both bills attempt to address the problems of spam, but unfortunately
the Murkowski bill has several critical flaws that both make it
ineffective and would impose huge extra costs on ISPs.  Fortunately
the Smith bill has none of these problems.

The Murkowski bill:

* Requires that advertisements be tagged "advertisement" and have valid
contact info.

* Requires that each advertiser maintain an opt-out list, with a 48 hour
window permitted before acting on an opt-out request.

* Requires that all ISPs provide filtering on incoming mail, with
substantial fines if they don't.

* Prescribes a variety of remedies, including a cumbersome proceeding before
the Federal Trade Commission for ISPs accused of harboring spammers.

The full text of the Murkowski bill is on the senator's web site at
<http://www.senate.gov/~murkowski/press/EMail052197.html>.

This could be a disaster for ISPs.  It does nothing to address the
costs that spammers put on ISPs now, and adds unfunded mandates by
requiring filtering of mail that nobody wanted in the first place.  It
also makes spam clearly legal, so the amount of spam will greatly
increase.

We already know the reasons opt-out doesn't work: each tiny spammer
starts with an empty opt-out list, and they have an incentive to keep
lousy records and lose opt-out requests.  The simple filtering that
the bill mandates would exclude all advertising mail, so it makes it
much more difficult for existing legitimate opt-in businesses to
operate since their mail would be filtered, too.

The Smith bill, in contrast, is a short amendment to 47 USC 227, the
existing junk fax law, to make unsolicited commercial e-mail illegal,
with the same $500 civil penalty as currently applies to junk fax.  It
puts no new requirements on ISPs.  Rather, it makes it incumbent on
advertisers to sign up people affirmatively and to keep careful
records of opt-in requests, so the advertisers bear the bulk of the
cost.  Legitimate e-mail advertisers already do these things.

What you need to do:

* Particularly if you run an ISP or other Internet-related business,
call your representative and ask him or her to support and ideally
co-sponsor the Smith bill.  Tell him why the Murkowski bill would be
bad for your business.

* Senator Murkowski has asked for e-mail comments at
commercialemail@murkowski.senate.gov.  Remember, his goals are
laudable, it's the implementation that has problems.  Encourage him to
adopt the language of the Smith bill.

Incidentally, I hear that Cyber Promotions supports the Murkowski bill.

------------------------------

Date: Thu, 29 May 1997 16:21:19 -0500 (CDT)
From: Jim Thomas <jthomas2@SUN.SOCI.NIU.EDU>
Subject: File 2--Text of S. 771 (Senate version of Anti-Spam bill)


   Please note throughout S. 771,
   Commission refers to the Federal Trade Commission,
   not the Federal Communications Commission

                               S. 771 BILL TEXT



    Be it enacted by the Senate and House of Representatives of the
   United States of America in Congress assembled,

   SECTION 1. SHORT TITLE.

   This Act may be cited as the ``Unsolicited Commercial Electronic Mail
   Choice Act of 1997''.

   SEC. 2. FINDINGS.

   Congress makes the following findings:

   (1) The Internet is a worldwide network of information that growing
   numbers of Americans use on a regular basis for educational and
   personal activities.

   (2) Electronic mail messages transmitted on the Internet constitute an
   increasing percentage of communications in the United States.

   (3) Solicited commercial electronic mail is a useful and
   cost-effective means for Americans to receive information about a
   business and its products.

   (4) The number of transmissions of unsolicited commercial electronic
   mail advertisements has grown exponentially over the past several
   years as the technology for creating and transmitting such
   advertisements in bulk has made the costs of distribution of such
   advertisements minimal.

   (5) Individuals have available no effective means of differentiating
   between unsolicited commercial electronic mail advertisements and
   other Internet communications.

   (6) The transmitters of unsolicited commercial electronic mail
   advertisements can easily move from State to State.

   (7) Individuals and businesses that receive unsolicited commercial
   electronic mail advertisements often pay for the costs of such receipt
   ,including the costs of Internet access and long distance telephone
   charges.

   (8) Unsolicited commercial electronic mail can be used to advertise
   legitimate services and goods but is also used for fraudulent and
   deceptive purposes in violation of Federal and State law.

   (9) Individuals and companies that use unsolicited commercial
   electronic mail for fraudulent and deceptive purposes often use
   fraudulent identification information in such electronic mail, making
   it impossible for a recipient to request to be removed from the
   mailing list or for law enforcement authorities to identify the
   sender.

   (10) The inability of recipients of unsolicited commercial electronic
   mail to identify the senders of such electronic mail or to prevent its
   receipt impedes the flow of commerce and communication on the Internet
   and threatens the integrity of commerce on the Internet.

   (11) Internet service providers are burdened by the cost of equipment
   necessary to process unsolicited commercial electronic mail.

   (12) To facilitate the development of commerce and communication on
   the Internet, unsolicited commercial electronic mail should be readily
   identifiable and filterable by individuals and Internet service
   providers.

   SEC. 3. REQUIREMENTS RELATING TO TRANSMISSIONS OF UNSOLICITED
   COMMERCIAL ELECTRONIC MAIL.

   (a) Information on Advertisement.

   (1) Requirement.

   Unless otherwise authorized pursuant to a provision of section 7, a
   person who transmits an electronic mail message as part of the
   transmission of unsolicited commercial electronic mail shall cause to
   appear in each electronic mail message transmitted as part of such
   transmission the information specified in paragraph (3).

   (2) Placement.



     * (A) Advertisement.

       The information specified in subparagraph (A) of paragraph (3)
       shall appear as the first word of the subject line of the
       electronic mail message without any prior text or symbol.


     * (B) Other information.

       The information specified in subparagraph (B) of that paragraph
       shall appear prominently in the body of the message.



   (3) Covered information.

   The following information shall appear in an electronic mail message
   under paragraph (1):



     * (A) The term ``advertisement''.


     * (B) The name, physical address, electronic mail address, and
       telephone number of the person who initiates transmission of the
       message.



   (b) Routing Information.

   All Internet routing information contained within or accompanying an
   electronic mail message described in subsection (a) shall be valid
   according to the prevailing standards for Internet protocols.

   (c) Effective Date.

   The requirements in this section shall take effect 30 days after the
   date of enactment of this Act.

   SEC. 4. FEDERAL REGULATION OF UNSOLICITED COMMERCIAL ELECTRONIC MAIL.


   (a) Transmissions.

   (1) In general.

   Upon notice from a person of the person's receipt of electronic mail
   in violation of a provision of section 3 or 7, the Commission

     * (A) may conduct an investigation to determine whether or not the
       electronic mail was transmitted in violation of the provision; and


     * (B) if the Commission determines that the electronic mail was
       transmitted in violation of the provision, may

          + (i) impose upon the person initiating the transmission a
            civil fine in an amount not to exceed $11,000;

          + (ii) commence in a district court of the United States a
            civil action to recover a civil penalty in an amount not to
            exceed $11,000 against the person initiating the
            transmission; or

          + (iii) both impose a fine under clause (i) and commence an
            action under clause (ii).


       (2) Deadline.

       The Commission may not take action under paragraph (1)(B) with
       respect to a transmission of electronic mail more than 2 years
       after the date of the transmission.

       (b) Administration.

       (1) Notice by electronic means.

       The Commission shall establish an Internet web site with an
       electronic mail address for the receipt of notices under
       subsection (a).

       (2) Information on enforcement.

       The Commission shall make available through the Internet web site
       established under paragraph (2) information on the actions taken
       by the Commission under subsection (a)(1)(B).

       (3) Assistance of Federal Communications Commission.

       The Federal Communications Commission may assist the Commission in
       carrying out its duties this section.

       SEC. 5. ACTIONS BY STATES.

       (a) In General.

       Whenever an attorney general of any State has reason to believe
       that the interests of the residents of that State have been or are
       being threatened or adversely affected because any person is
       engaging in a pattern or practice of the transmission of
       electronic mail in violation of a provision of section 3 or 7, the
       State, as parens patriae, may bring a civil action on behalf of
       its residents to enjoin such transmission, to enforce compliance
       with the provision, to obtain damages or other compensation on
       behalf of its residents, or to obtain such further and other
       relief as the court considers appropriate.

       (b) Notice to Commission.

       (1) Notice.

       The State shall serve prior written notice of any civil action
       under this section upon the Commission and provide the Commission
       with a copy of its complaint, except that if it is not feasible
       for the State to provide such prior notice, the State shall serve
       written notice immediately upon instituting such action.

       (2) Rights of commission.

       Upon receiving a notice with respect to a civil action under
       paragraph (1), the Commission shall have the right

          + (A) to intervene in the action;

          + (B) upon so intervening, to be heard in all matters arising
            therein; and

          + (C) to file petitions for appeal.


       (c) Actions by Commission.

       Whenever a civil action has been instituted by or on behalf of the
       Commission for violation of a provision of section 3 or 7, no
       State may, during the pendency of such action, institute a civil
       action under this section against any defendant named in the
       complaint in such action for violation of any provision as alleged
       in the complaint.

       (d) Construction.

       For purposes of bringing a civil action under subsection(a),
       nothing in this section shall prevent an attorney general from
       exercising the powers conferred on the attorney general by the
       laws of the State concerned to conduct investigations or to
       administer oaths or affirmations or to compel the attendance of
       witnesses or the production of documentary or other evidence.

       (e) Venue; Service of Process.

       Any civil action brought under subsection (a)in a district court
       of the United States may be brought in the district in which the
       defendant is found, is an inhabitant, or transacts business or
       wherever venue is proper under section 1391 of title 28, United
       States Code. Process in such an action may be served in any
       district in which the defendant is an inhabitant or in which the
       defendant may be found.

       (f) Actions by Other State Officials.

       Nothing in this section may be construed to prohibit an authorized
       State official from proceeding in State court on the basis of an
       alleged violation of any civil or criminal statute of the State
       concerned.

       (g) Definition.

       In this section, the term ``attorney general'' means the chief
       legal officer of a State.

       SEC. 6. INTERNET SERVICE PROVIDERS.

       (a) Exemption for Certain Transmissions.

       The provisions of this Act shall not apply to a transmission of
       electronic mail by an interactive computer service provider unless
       the provider initiates the transmission.

       (b) Notice of Transmissions from Commission.

       Not later than 72 hours after receipt from the Commission of
       notice that its computer equipment may have been used by another
       person to initiate a transmission of electronic mail in violation
       of a provision of section 3 or 7, an interactive computer service
       provider shall

       (1) provide the Commission such information as the Commission
       requires in order to determine whether or not the computer
       equipment of the provider was used to initiate the transmission;
       and

       (2) if the Commission determines that the computer equipment of
       the provider was used to initiate the transmission, take
       appropriate actions to terminate the use of its computer equipment
       by that person.

       (c) Notice of Transmissions from Private Individuals.

       (1) In general.

       Subject to paragraph (2), not later than 14 days after receipt
       from a private person of notice that its computer equipment may
       have been used by another person to initiate a transmission of
       electronic mail in violation of a provision of section 3 or 7, an
       interactive computer service provider shall

          + (A) transmit the notice to the Commission together with such
            information as the Commission requires in order to determine
            whether or not the computer equipment of the provider was
            used to initiate the transmission; and

          + (B) if the Commission determines that the computer equipment
            of the provider was used to initiate the transmission, take
            appropriate actions to terminate the use of its computer
            equipment by that person.


       (2) Minimum notice requirement.

       An interactive computer service provider shall transmit a notice
       under paragraph (1) with respect to a particular transmission of
       electronic mail only if the provider receives notice with respect
       to the transmission from more than 100 private persons.

       (d) Blocking Systems.

       (1) Requirement.

       Each interactive computer service provider shall make available to
       subscribers to such service a system permitting such subscribers,
       upon the affirmative electronic request of such subscribers, to
       block the receipt through such service of any electronic mail that
       contains the term``advertisement'' in its subject line.

       (2) Notice of availability.

       Upon the applicability of this subsection to an interactive
       computer service provider, the provider shall

          + (A) notify each current subscriber, if any, to the service of
            the blocking system provided for under paragraph (1); and

          + (B) notify any new subscribers to the service of the blocking
            system.


       (3) Blocking by provider.

       An interactive computer service provider may, upon its own
       initiative, block the receipt through its service of any
       electronic mail that contains the term ``advertisement'' in its
       subject line.

       (4) Applicability.

       The requirements in paragraphs (1) and (2) shall apply

          + (A) beginning 1 year after the date of enactment of this Act,
            in the case of an interactive computer service provider
            having more than 25,000 or more subscribers; and

          + (B) beginning 2 years after that date, in the case of an
            interactive computer service provider having less than 25,000
            subscribers.


       (e) Records.

       An interactive computer service provider shall retain records of
       any action taken on a notice received under this section for not
       less than 2 years after the date of receipt of the notice.

       (f) Construction.

       Nothing in this section may be construed to require an interactive
       computer service provider to transmit or otherwise deliver any
       electronic mail message containing the term ``advertisement'' in
       its subject line.

       (g) Definition.

       In this section, the term ``interactive computer service
       provider'' has the meaning given that term in section 230(e)(2) of
       the Communications Act of 1934 (47 U.S.C. 230(e)(2)).

       SEC. 7. RECEIPT OF TRANSMISSIONS BY PRIVATE PERSONS.

       (a) Termination of Transmissions.

       (1) Request.

       A person who receives a transmission of unsolicited commercial
       electronic mail not otherwise authorized under this section may
       request, by electronic mail to the same electronic mail address
       from which the transmission originated, the termination of
       transmissions of such mail by the person initiating the
       transmission.

       (2) Deadline.

       A person receiving a request for the termination of transmissions
       of electronic mail under this subsection shall cease initiating
       transmissions of electronic mail to the person submitting the
       request not later than 48 hours after receipt of the request.

       (b) Affirmative Authorization of Transmissions Without
       Information.

       (1) In general.

       Subject to paragraph (2), a person may authorize another person
       to initiate transmissions to the person of unsolicited commercial
       electronic mail without inclusion in such transmissions of the
       information required by section 3.

       (2) Termination.

          + (A) Notice.

            A person initiating transmissions of electronic mail under
            paragraph (1) shall include, with each transmission of such
            mail to a person authorizing the transmission under that
            paragraph, notice that the person authorizing the
            transmission may request at any time the recommencement of
            the inclusion in such transmissions of the information
            required by section 3.

          + (B) Deadline.

            A person receiving a request under this paragraph shall
            include the information required by section 3 in all
            transmissions of unsolicited commercial electronic mail to
            the person making the request beginning not later than 48
            hours after receipt of the request.


       (c) Constructive Authorization of Transmissions Without
       Information.

       (1) In general.

       Subject to paragraph (2), a person who secures a good or service
       from, or otherwise responds electronically to, an offer in a
       transmission of unsolicited commercial electronic mail shall be
       deemed to have authorized transmissions of such mail without
       inclusion of the information required under section 3 from the
       person who initiates the transmission providing the basis for such
       authorization.

       (2) Termination.

          + (A) Request.

            A person deemed to have authorized the transmissions of
            electronic mail under paragraph (1) may request at any time
            the recommencement of the inclusion in such transmissions of
            the information required by section 3.

          + (B) Deadline.

            A person receiving a request under this paragraph shall
            include the information required by section 3 in all
            transmissions of unsolicited commercial electronic mail to
            the person making the request beginning not later than 48
            hours after receipt of the request.


       (d) Effective Date of Termination Requirements.

       Subsections (a), (b)(2), and(c)(2) shall take effect 30 days after
       the date of enactment of this Act.

       SEC. 8. ACTIONS BY PRIVATE PERSONS.

       (a) In General.

       Any person adversely affected by a violation of a provision of
       section 3 or 7, or an authorized person acting on such person's
       behalf, may, within 1 year after discovery of the violation, bring
       a civil action in a district court of the United States against a
       person who has violated the provision. Such an action may be
       brought to enjoin the violation, to enforce compliance with the
       provision, to obtain damages, or to obtain such further and other
       relief as the court considers appropriate.

       (b) Damages.

       (1) In general.

       The amount of damages in an action under this section for a
       violation specified in subsection (a) may not exceed $5,000 per
       violation.

       (2) Relationship to other damages.

       Damages awarded for a violation under this subsection are in
       addition to any other damages awardable for the violation under
       any other provision of law.

       (c) Cost and Fees.

       The court, in issuing any final order in any action brought under
       subsection (a), may award costs of suit and reasonable attorney
       fees and expert witness fees for the prevailing party.

       (d) Venue; Service of Process.

       Any civil action brought under subsection (a)in a district court
       of the United States may be brought in the district in which the
       defendant is found, is an inhabitant, or transacts business or
       wherever venue is proper under section 1391 of title 28, United
       States Code. Process in such an action may be served in any
       district in which the defendant is an inhabitant or in which the
       defendant may be found.

       SEC. 9. RELATION TO STATE LAWS.

       (a) State Law Applicable Unless Inconsistetive Authorization of
 Transmissions Without
       Information.

       (1) In general.

       Subject to paragraph (2), a person may authorize another person
       to initiate transmissions to the person of unsolicited commercial
       electronic mail without inclusion in such transmissions of the
       information required by section 3.

       (2) Termination.

          + (A) Notice.

            A person initiating transmissions of electronic mail under
            paragraph (1) shall include, with each transmission of such
            mail to a person authorizing the transmission under that
            paragraph, notice that the person authorizing the
            transmission may request at any time the recommencement of
            the inclusion in such transmissions of the information
            required by section 3.

          + (B) Deadline.

            A person receiving a request under this paragraph shall
            include the information required by section 3 in all
            transmissions of unsolicited commercial electronic mail to
            the person making the request beginning not later than 48
            hours after receipt of the request.


       (c) Constructive Authorization of Transmissions Without
       Information.

       (1) In general.

       Subject to paragraph (2), a person who secures a good or service
       from, or otherwise responds electronically to, an offer in a
       transmission of unsolicited commercial electronic mail shall be
       deemed to have authorized transmissions of such mail without
       inclusion of the information required under section 3 from the
       person who initiates the transmission providing the basis for such
       authorization.

       (2) Termination.

          + (A) Request.

            A person deemed to have authorized the transmissions of
            electronic mail under paragraph (1) may request at any time
            the recommencement of the inclusion in such transmissions of
            the information required by section 3.

          + (B) Deadline.

            A person receiving a request under this paragraph shall
            include the information required by section 3 in all
            transmissions of unsolicited commercial electronic mail to
            the person making the request beginning not later than 48
            hours after receipt of the request.


       (d) Effective Date of Termination Requirements.

       Subsections (a), (b)(2), and(c)(2) shall take effect 30 days after
       the date of enactment of this Act.

       SEC. 8. ACTIONS BY PRIVATE PERSONS.

       (a) In General.

       Any person adversely affected by a violation of a provision of
       section 3 or 7, or an authorized person acting on such person's
       behalf, may, within 1 year after discovery of the violation, bring
       a civil action in a district court of the United States against a
       person who has violated the provision. Such an action may be
       brought to enjoin the violation, to enforce compliance with the
       provision, to obtain damages, or to obtain such further and other
       relief as the court considers appropriate.

       (b) Damages.

       (1) In general.

       The amount of damages in an action under this section for a
       violation specified in subsection (a) may not exceed $5,000 per
       violation.

       (2) Relationship to other damages.

       Damages awarded for a violation under this subsection are in
       addition to any other damages awardable for the violation under
       any other provision of law.

       (c) Cost and Fees.

       The court, in issuing any final order in any action brought under
       subsection (a), may award costs of suit and reasonable attorney
       fees and expert witness fees for the prevailing party.

       (d) Venue; Service of Process.

       Any civil action brought under subsection (a)in a district court
       of the United States may be brought in the district in which the
       defendant is found, is an inhabitant, or transacts business or
       wherever venue is proper under section 1391 of title 28, United
       States Code. Process in such an action may be served in any
       district in which the defendant is an inhabitant or in which the
       defendant may be found.

       SEC. 9. RELATION TO STATE LAWS.

       (a) State Law Applicable Unless Inconsistent.

       The provisions of this Act do not annul, alter, or affect the
       applicability to any person, or otherwise exempt from the
       applicability to any person, of the laws of any State with respect
       to the transmission of unsolicited commercial electronic, except
       to the extent that those laws are inconsistent with any provision
       of this Act,and then only to the extent of the inconsistency.

       (b) Requirement Relating to Determination of Inconsistency.

       The Commission may not determine that a State law is inconsistent
       with a provision of this Act if the Commission determines that
       such law places greater restrictions on the transmission of
       unsolicited commercial electronic mail than are provided for under
       such provision.

       SEC. 10. DEFINITIONS.

       In this Act:

       (1) Commercial electronic mail. The term ``commercial electronic
       mail''means any electronic mail that

          + (A) contains an advertisement for the sale of a product or
            service;

          + (B) contains a solicitation for the use of a toll-free
            telephone number or a telephone number with a 900 prefix the
            use of which connects the user to a person or service that
            advertises the sale of or sells a product or service; or

          + (C) contains a list of one or more Internet sites that
            contain an advertisement referred to in subparagraph (A) or a
            solicitation referred to in subparagraph (B).


       (2) Commission.

       The term ``Commission'' means the Federal Trade Commission.

       (3) State.

       The term ``State'' means any State of the United States, the
       District of Columbia, Puerto Rico, Guam, American Samoa, the
       United States Virgin Islands, the Commonwealth of the Northern
       Mariana Islands, the Republic of the Marshall Islands, the
       Federated States of Micronesia, the Republic of Palau, and any
       possession of the United States.

------------------------------

Date: Thu, 7 May 1997 22:51:01 CST
From: CuD Moderators <cudigest@sun.soci.niu.edu>
Subject: File 3--Cu Digest Header Info (unchanged since 7 May, 1997)

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End of Computer Underground Digest #9.43
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