Spam is the term now generally used to refer to unsolicited electronic messages, usually transmitted to a large number of recipients.  They usually, but not necessarily, have a commercial focus, promoting or selling products or services; and they share one or more of the following characteristics:

  • They are sent in an untargeted and indiscriminate manner, often by automated means;
  • They include or promote illegal or offensive content;
  • Their purpose is fraudulent or otherwise deceptive;
  • They collect or use personal information in breach of the Privacy Act 1988 National Privacy Principles (NPPs );
  • They are sent in a manner that disguises the originator;
  • They do not offer a valid and functional address to which recipients may send messages opting out of receiving further unsolicited messages.

Not all bulk email is spam.  Bulk email would probably not be generally regarded as spam if it:

  • Is sent to recipients who have previously dealt voluntarily with the sender before and, on the basis of that existing relationship, can reasonably be assumed by the sender to be prepared to accept messages of the type being sent;
  • Does not promote or include illegal content;
  • Is not deceptive in any way that breaches common law or statute law;
  • Does not collect or use personal information in breach of the National Privacy Principles.

While spam has increased in prominence in recent years, growing from a minor nuisance to a significant problem, its existence actually predates the Internet.  It has been the subject of discussion since at least 1975, with one of the first recorded instances of spam dating back to 1978, when the Digital Equipment Corporation (DEC) spammed ARPAnet users about new DEC products.  Probably the first major commercial spamming occurred in 1994, when two lawyers posted a message advertising their services to several thousand newsgroups (message boards) on USENET, the world’s largest online conferencing system.  Then, as now, the reaction to spam was overwhelmingly negative, although it was seen as an occasional nuisance and did not pose any real threat.  There were even then, though, some instances where spamming was used to maliciously interrupt services by overloading email servers.

Today, the problem of spam has reached a point where it is having a significantly negative effect on users’ confidence in using email, and there are clear signs of a deleterious  impact on the performance of the global email network.  Some commentators are even predicting that the continuing proliferation of spam could mean the end of email as an effective form of communication.  The United States Direct Marketing Association, long-term advocates of using legitimate bulk email as a form of direct marketing, acknowledge that email is being threatened by spam and have recently expressed their support for legislative efforts to control the growth of spam.

2.1 A definition of spam

An agreed definition is important in making any anti-spam provisions effective.  Internet service providers (ISPs) and regulatory authorities need to be reasonably confident of this definition before they enforce their terms and conditions or any regulations or laws against spammers, as do legitimate direct marketers who want to ensure their activities remain both legal and ethical.

For the purposes of this report, spam is defined as unsolicited electronic messaging, regardless of its content.  This definition takes into account the characteristics of bulk email discussed above, and has regard to the opinions expressed in submissions to NOIE’s interim report. 

Arriving at an agreed definition of spam is a potentially contentious issue, as the direct marketing industry, ISPs, spammers, blacklisters and privacy and consumer groups have their own interests and views.

 

2.2 Major problems caused by spam

Spam poses several challenges to both Internet users and regulatory agencies. It is typically anonymous, indiscriminate and global.  With these characteristics spam has become a popular vehicle for promotions that may be illegal, unscrupulous or use tactics that would not be commercially or legally viable outside the virtual environment.  A report to the US Federal Trade Commission (FTC) estimates that roughly half of all unsolicited commercial email contains fraudulent or deceptive content. Some of the key issues raised by spam include privacy, illegal/offensive content, misleading and deceptive trade practices and burdensome financial and resource costs.

2.2.1 Privacy

There are significant privacy issues surrounding the manner in which email addresses and personal information are collected and handled.  It is not uncommon for address collectors to covertly harvest email addresses from the Internet, as users visit certain sites, and buy and sell them in bulk without the knowledge or consent of the owner.

2.2.2 Content - pornography, illegal online gambling and unlawful trade practices

There are obvious community and regulatory agency concerns with the illicit content of a considerable amount of spam - including those that promote pornography, illegal online gambling services, pyramid selling, get rich quick schemes or misleading and deceptive business practices.  The indiscriminate method of distribution is of particular concern as it is common for minors to receive spam that is pornographic, illegal or offensive.

2.2.3 Deceptive practices - ’spoofing’

Spoofing is the forgery of an email header so that the message appears to have originated from an entity or location other than the actual source.  Spammers may use spoofing to route spam through a reputable organisation in an attempt to entice recipients to open and respond to their messages.  There are significant costs to the victims in terms of damage to commercial reputation as well as time and resource costs in rectifying this damage.

2.2.4 Financial costs

The dollar cost of spam is inherently difficult to estimate, but the following provides some appreciation of the orders of magnitude involved.

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