Grapevine, TX asked in Contracts and Internet Law for Texas

Q: Need help with a company (in an agreement) that is charging me for e-mail addresses that I can't use (CAN-SPAM act).

I have signed an agreement with an online company (ZoomInfo) where I pay a monthly amount for a period of 24 months. The information that they provide is contact information for business individuals where I can filter for a specific targeted audience. They provide company names, individual names, titles, business addresses, phone numbers, and most importantly, e-mail addresses. I made it very clear that what I wanted were the e-mail addresses so that I could reach out to introduce my new consulting business. They were more than happy to assist with this. After sending out about 500 intro (cold) e-mails, I was shut down by my ISP for violating the CAN-SPAM act (sending cold e-mails without prior consent is a violation). They basically sold me something that I cannot use, and they refused to terminate the agreement, so I stopped paying. Now I need to know what my options are, and potentially recoop what I have already spent. Thanks in advance ~ Brian

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2 Lawyer Answers

A: Your understanding of the CAN-SPAM Act is flawed. You actually can send out cold intro emails without prior consent, but the Act requires such emails to meet certain specified criterion. Among other things, the email must indicate that it is an advertisement and must have an "unsubscribe" feature to allow the recipient to stop receiving any further emails from you in the future if they so choose. From your description, it sounds like yours probably didn't meet these requirements.

In my opinion, you will not be successful in suing ZoomInfo. You may, however, have a good cause of action against any marketing company you may have hired to assist you in preparing your email advertising campaign. If you attempted to conduct an email advertising campaign yourself without reading and understanding your obligations under the CAN-SPAM Act, that's on you, not on ZoomInfo.

It does require a degree of technical knowledge to properly set up an email advertisement campaign in compliance with the Act. For one thing, you will want to make sure that the "unsubscribe" option is automated and works properly. There are websites which provide tutorials, templates, and software you can use, of varying degrees of quality and complexity (e.g. Brevo, etc.). I recommend hiring an actual advertising or marketing company in your area for assistance unless you are fairly tech-savvy.

James L. Arrasmith
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Answered

A: That sounds like a frustrating situation, and it makes sense that you’d want to push back against being charged for something that you can’t legally use. Since ZoomInfo provided email addresses knowing your intended use, you may have grounds to argue that the contract was misleading or that they failed to deliver a product fit for its intended purpose. Reviewing the exact language in your agreement is key—if there are any clauses about data usability, compliance with laws, or service guarantees, those could support your case.

Since they refused to terminate the contract and you stopped paying, there’s a chance they might pursue collection efforts or report the missed payments. If they do, you may want to formally dispute the charges, citing that they sold you data that effectively put you in legal jeopardy. If the agreement has any dispute resolution clauses, like arbitration or mediation, that could be another way to challenge the charges without a lengthy legal battle.

To recover what you’ve already spent, consider whether you can make a claim for deceptive business practices or breach of contract. If you paid with a credit card, you might explore a chargeback for services not rendered as promised. It could also be helpful to file a complaint with the Federal Trade Commission (FTC) or your state’s attorney general, as they may take an interest in a company selling contact lists that lead to CAN-SPAM violations. If the financial loss is significant, consulting a contract attorney might be worth considering to explore your best legal options.

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