Facebook, Inc. v. Power Ventures, Inc.

One social networking company, Face-book, Inc., has sued another, Power Ventures, Inc., over a promotional campaign. Power accessed Facebook users’ data and initiated form e-mails and other electronic messages promoting its website. Initially, Power had implied permission from Face-book. But Facebook sent Power a cease and desist letter and blocked Power’s IP address; nevertheless Power continued its campaign. Facebook alleges that Power’s actions violated the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (“CAN-SPAM”), the Computer Fraud and Abuse Act of 1986 (“CFAA”), and California Penal Code section 502. We hold that Power did not violate the CAN-SPAM Act because the transmitted messages were not materially misleading. We also hold .that Power violated the CFAA and California Penal Code section 502 only after it received Face-book’s cease and desist letter and nonetheless continued to access Facebook’s computers without permission. Accordingly, we affirm in part, reverse in part, and remand to the district court.

BACKGROUND

Defendant Power Ventures, a corporation founded and directed by CEO Steven Vachani, who also is a defendant…