Omega World Travel, Inc. v. Mummagraphics, Inc.

469 F.3d 348, 2006 WL 3333738
CourtCourt of Appeals for the Fourth Circuit
DecidedNovember 17, 2006
Docket05-2080
StatusPublished
Cited by15 cases

This text of 469 F.3d 348 (Omega World Travel, Inc. v. Mummagraphics, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omega World Travel, Inc. v. Mummagraphics, Inc., 469 F.3d 348, 2006 WL 3333738 (4th Cir. 2006).

Opinion

Affirmed by published opinion. Judge WILKINSON wrote the opinion, in which Judge DUNCAN and Judge VOORHEES joined.

OPINION

WILKINSON, Circuit Judge:

Countless commercial e-mail messages, known colloquially as “spam,” pass through the Internet every day, inspiring frustration, countermeasures, and — as here — lawsuits. Based upon eleven commercial e-mail messages, Mummagraphics, Inc., a provider of online services, seeks significant statutory damages from Omega World Travel, Inc., a Virginia-based travel agency (“Omega”); Gloria Bohan, Omega’s president and founder; and Cruise.com, Inc., a wholly owned subsidiary of Omega (collectively, “appellees”). Mummagraph-ics alleges that Cruise.com sent the messages in violation of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (“CAN-SPAM Act”), 15 U.S.C. §§ 7701 et seq., as well as Oklahoma law.

The district court awarded summary judgment to the appellees on all of Mum-magraphics’ claims and we affirm. The CAN-SPAM Act preempts Mummagraph-ics’ claims under Oklahoma’s statutes. In addition, Mummagraphics failed to allege the material inaccuracies or pattern of failures to conform to opt-out requirements that is necessary to establish liability under the CAN-SPAM Act. The CAN-SPAM Act addresses “spam” as a serious and pervasive problem, but it does not impose liability at the mere drop of a hat.

I.

Appellant Mummagraphics, Inc., d/b/a Webguy Internet Solutions, is an Oklahoma corporation with its only place of business in Oklahoma City. According to Mark Mumma, the company’s president, *351 Mummagraphics hosts web pages, registers domain names, designs web pages and logos, and sets up computer servers. Mummagraphics also operates websites devoted to opposing “spam” messages including “sueaspammer.com.” In addition, Mummagraphics runs a website, “OptOut-ByDomain.com,” that lists Internet domain names — roughly seventy of 347 of which are operated by Mummagraphics — whose owners have indicated that they do not wish to receive unsolicited commercial email messages. Mummagraphics owns the domain name webguy.net and uses the email account inbox@webguy.net for company purposes.

Cruise.com operates a website selling cruise vacations and sends e-mail advertisements — dubbed “E-deals” — to prospective customers. It sent eleven “E-deals” containing travel offers to inbox@webguy. net between December 29, 2004 and February 9, 2005. Each message contained a line of text on which the recipient could click in order to be removed from future mailings, and each message also said that the recipient could opt-out of future emails by writing to a postal address contained in each message. Each message also contained a link to the Cruise.com website and a tollfree phone number for the company.

Mummagraphics claims that the messages contained several inaccuracies. First, each message stated that the recipient had signed up for the Cruise.com mailing list, but Mummagraphics alleges that it had not asked that inbox@webguy.net receive the company’s offers. Second, while each message listed Cruise.com as the sending organization, each also included the address “FL-Broadcast.net” in its header information, even though Mumma-graphics alleges that “FL-Broadcast.net” is not an Internet domain name linked to Cruise.com or the other appellees. In addition, the messages contained the “from” address cruisedeals@cruise.com, even though Cruise.com had apparently stopped using that address.

When Mark Mumma noticed the Cruise, com e-mails that inbox@webguy.net had received, he did not use the electronic opt-out link to remove the address from the Cruise.com e-mail list, but instead called John Lawless, Omega World Travel’s general counsel, to complain. Mumma told Lawless that he had not asked to receive the “E-deal” messages. He told Lawless that he refused to use e-mail opt-out mechanisms because “only idiots do that,” and he believed opt-out mechanisms just led to more unwanted messages. Mumma told Lawless that his preferred removal procedure was to sue for violations of Oklahoma law. Lawless asked Mumma for his e-mail address, but Mumma did not provide it. Instead, he asked Lawless to remove from all future mailings every address containing a domain name listed on Mumma-graphics’ “OptOutByDomain.com” website. Lawless said he was “gonna take them down right now,” but Omega’s technical support division indicated that removing all the addresses would require considerable effort, and the addresses were not immediately removed.

On January 20, 2005, the day after speaking with Lawless, Mumma received another “E-deal” message at inbox@ webguy.net. He sent a letter dated January 25, 2005 to Daniel Bohan of Omega World Travel, saying that he had received six unsolicited “E-deal” messages from Cruise.com, Omega’s subsidiary, but again not specifying the e-mail address at which he had received the messages. The letter claimed that the messages violated federal and state laws and said that Mumma intended to sue Bohan’s company for at least $150,000 in statutory damages unless Bo-han settled the matter for $6,250. Mum- *352 ma attached the Cruise.com e-mails to his letter, and after John Lawless noticed that the messages appeared to have been sent to inbox@webguy.net, he directed that the address be removed from the Cruise.com mailing list. The company subsequently removed the address.

After Omega World Travel failed to pay Mumma, postings on one of Mumma’s “anti-spam” websites accused Omega, Cruise.com, and Daniel and Gloria Bohan of being “spammers” who had violated state and federal laws. The website posted a photo of the Bohans that had evidently been copied from the Omega website and described the couple as “cruise.com spammers.” On the basis of these postings, Omega World Travel, the Bohans, and Cruise.com sued Mumma and Mum-magraphics in federal court, claiming defamation, copyright infringement, trademark infringement, and unauthorized use of likeness. The district court granted Mumma-graphics summary judgment on all these claims except the libel action, on which all the plaintiffs except Daniel Bohan, who is no longer a party, expect to proceed to trial.

Mummagraphics raised counterclaims against the appellees under Oklahoma and federal law, which are the only claims now before this court. Mummagraphics alleged, inter alia, that the Cruise.com emails contained actionable inaccuracies and that the appellees failed to comply with federal and state requirements that they stop sending messages to recipients who opted out through specified procedures. Both parties sought summary judgment on Mummagraphics’ counterclaims, and the district court granted the appellees’ motion. The court held that the CAN-SPAM Act preempted Mumma-graphics’ claims under Oklahoma’s statutes. It further held, inter alia, that the appellees had not violated the CAN-SPAM Act because the alleged e-mail inaccuracies were not material and the appellees had not violated the opt-out provisions. Mum-magraphics now appeals.

II.

A.

We turn first to the district court’s determination that the CAN-SPAM Act preempted Mummagraphics’ claims under Oklahoma’s statutes regulating commercial e-mail messages.

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Bluebook (online)
469 F.3d 348, 2006 WL 3333738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omega-world-travel-inc-v-mummagraphics-inc-ca4-2006.