Study Shows Federal Law to Block “Spam” Ineffective


CONTACT: Mark Schirmer

FRANKFORT, KY (July 9, 2004) — A six-month study of the impact of the federal CAN-SPAM (Controlling the Assault of Non-Solicited Pornography and Marketing) Act by the Kentucky Long-Term Policy Research Center finds that, as predicted by critics, the law has had little effect on the flow of unsolicited e-mail. In fact, the study finds, one of its provisions appears to be having the reverse effect: it increases the flow of unsolicited e-mail. Because 87 percent of Kentuckians have Internet access and electronic communications have become central to business operations, the findings are of particular importance.

Spam has become a vast underground international business, generating as much as 67 percent of global e-mail activity and 83 percent of all the e-mail sent in the United States. The unsolicited advertising is mostly for pharmaceuticals, mortgages, pornography, and an array of “miracle” products; but spam has also become the method-of-choice for virus distribution. The sheer volume of it is creating a drag on global productivity. The cost of spam-filters and lost productivity attributed to this barrage of online solicitations has been estimated at $10 billion in 2004, but Microsoft’s Ryan Hamlin speculated that businesses could spend $18 billion this year alone just for filtering software and storage hardware.

For the study, researcher Mark Schirmer created dummy addresses on selected state websites that were invisible to the human eye but susceptible to being “harvested” electronically by so-called spammers. Varying responses to the e-mails showed, among other things, that the “opt-out” provision of the law only served to increase the flow of spam.

The study also yielded some important information about how to curb the flow of spam. “Thus far, CAN-SPAM has not proven to be effective as a legal deterrent, but our findings highlight technological and common-sense approaches people, businesses, and government agencies can take to cut down on the spam they receive,” Schirmer said. “Until CAN-SPAM either produces some high-profile convictions or is replaced with more stringent legislation, computer users will need to take the kinds of steps we outline. But realistically, spammers have proven to adapt quickly, so it’s impossible to predict how long these strategies will be effective.”

At the end of the year, the Center plans a second six-month update of the progress of the law’s impact on spam and the efficacy of strategies employed to avoid it.