Company to pay $1.1m to settle spam investigation

ALBANY, N.Y. -- A company accused of using unauthorized personal data ''mined" by other firms from about 6 million e-mail addresses nationwide has agreed to reform its practices under a $1.1 million settlement, New York officials said yesterday.

Datran Media Corp. of New York City, a leading e-mail marketer, used e-mail addresses and other personal data it obtained from several companies, New York Attorney General Eliot Spitzer's office said. The settlement was scheduled to be outlined today.

The Internet ''customer acquisition" companies proclaimed on their websites that they wouldn't lend or sell the information provided. Consumers were often enticed to reveal their names, addresses, and financial data in exchange for free iPods and DVD movies.

Spitzer accused Datran of knowing of the companies' pledges, but spamming those consumers with unsolicited e-mails anyway, advertising discount drugs, diet pills, and other products. Spitzer's staff said they believe it is the largest deliberate breach of Internet privacy discovered by US authorities.

''We have always been and remain committed to industry best practices," Datran spokesman Mark Naples said. ''Therefore, we are pleased to resolve this matter with the attorney general and are gratified that his office worked collegially with us."