Social network operator sued over spam

Quepasa Corp., operator of online social networks, was sued today over allegations it’s been sending unwanted spam text messages to people nationwide by the thousands.

A lawsuit seeking class-action status was filed in federal court in Las Vegas.

The company is based in West Palm Beach, Fla., but it was sued in Las Vegas because it’s incorporated in Nevada.

The company owns the Quepasa.com website, described as a social network and gaming platform for the Latino community. Last month, Quepasa said it was buying the myYearbook business for $100 million.

In her Las Vegas lawsuit, Illinois resident Michelle Kaffko complained that in August 2008, she received a text message saying "Quepasa.com invites you to download a free game of your choice, just send OK to 79545 to enjoy your game and have some fun!"

"At no time did plaintiff consent to the receipt of the above-referenced text message or any other such spam text message advertisement from defendant," the suit says, adding Kaffko later received additional spam texts from Quepasa or its agents "in knowing violation of plaintiff’s privacy."

"Unlike more conventional advertisements, wireless spam can actually cost its recipients money because cellphone users must frequently pay their respective wireless service providers either for each text message call they receive, or incur a usage allocation deduction to their text plan, regardless of whether or not the message is authorized," the lawsuit alleges.

The suit, filed by Las Vegas attorney John Benedict, alleges violations of the federal Telephone Consumer Protection Act. The suit says that act prohibits unsolicited voice and text calls to cellphones.

The suit seeks an injunction requiring Quepasa to cease wireless spam activities plus an award of unspecified statutory damages to the class action plaintiffs, costs and attorney’s fees.

A message for comment on the suit was placed with Quepasa.

In its annual report in February, the publicly-traded company noted: "There are a variety of state and federal restrictions on the marketing activities conducted by email, or over the Internet, including U.S. federal and state privacy laws and the CAN-SPAM Act of 2003."

The CAN-SPAM Act bars the transmission of unsolicited commercial emails and texts.

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