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In November, 2006, Yesmail agreed to pay a $50,717 civil penalty to settle Federal Trade Commission charges that it violated the CAN-SPAM Act of 2003 by sending unsolicited commercial e-mails after consumers asked it to stop doing so.
The company had been implicated in naked short sales on the stock of a company called Sedona Corp., disclosed that it was negotiating with the SEC and hoped to reach a settlement that would likely include an injunction against future violations and "payment of a substantial civil penalty."