Vonage Runs Afoul Of Dreaded 'Failure To Hyperlink' Regulation

from the to-protect-investors dept

Two weeks ago, after it came out that Vonage was spamming its customers to promote its IPO (trading to start tomorrow), we predicted that their tactics could draw unwanted scrutiny from the SEC. This has proved true, albeit it's a minor violation. Apparently, the email the company sent to customers failed to include a hyperlink to the company's most recent prospectus on file with the SEC. Though it's minor, and unlikely to draw much of a response, the company stated in a recent filing that it could come up in any future shareholder lawsuits. While it's true that the company has made yet another mistake, the company is facing quite a pile-on in the media. If anything the incident shows how easy it is to run afoul of SEC regulations. While the SEC will probably ignore the mistake, you can be certain there are lots of class-action lawyers licking their chops in the event that the company stumbles.

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  • identicon
    Curtis Wright, 23 May 2006 @ 4:29pm

    Vonage Runs Afoul Of Dreaded 'Failure To Hyperlink

    Has anyone said anything about Vonage's attempts to sell by phone? Just curious...that I'm not the only one.

    reply to this | link to this | view in chronology ]

  • icon
    Peet McKimmie (profile), 23 May 2006 @ 5:05pm

    A picky point, but the definition of SPAM is email sent to an address that you have no prior business relationship with, so SPAMming your customers isn't possible...

    reply to this | link to this | view in chronology ]

    • identicon
      BC, 23 May 2006 @ 5:30pm

      Re:

      That may be your definition of spam, Mr. McKimmie, but most of us consider any unrequested commercial e-mail to be spam. If I didn't ask for it, and it is not directly related to existing business dealings (Billing, payment confirmation, shipping notification, and the like) then it's spam.

      reply to this | link to this | view in chronology ]

    • identicon
      Blaise, 23 May 2006 @ 8:06pm

      Re:

      Peet has a point, even though I do believe that any unwanted email should be considered 'spam' of some sort, there is a big difference between some strange random company and a company that you already have a business relationship with.

      But that said, most responsible companies allow you to easily indiciate whether or not you want to receive emails of that sort.

      I definitely don't agree with it, but it seems there should be some middle ground 'spam' term so that emails like the one Vonage sent out can be properly dealt with...

      reply to this | link to this | view in chronology ]

  • identicon
    fsckr, 23 May 2006 @ 5:51pm

    Vonage

    I'm always amazed by how persistent Vonage is with all their offerings. According to an article (and I think their prospectus) they spend almost $300 recruiting each customer.

    I've also gotten their 'spam' but if I remember correctly, their Service Terms permit that kind of thing.

    I can't wait until they start calling....I mean it is not like you can unlist your number from them...

    reply to this | link to this | view in chronology ]

  • identicon
    Mike Mixer, 23 May 2006 @ 7:44pm

    mistakes

    Forgetting to add a hyperlink to their prospectus?
    This isn't a 15 year- old throwing an email ad together for his dad's bakery, whoever did this work
    should have known all of the details and regulations.
    Lawyers will eat this up because smaller mistakes than this add up to big money.

    reply to this | link to this | view in chronology ]

  • identicon
    Robert, 26 May 2006 @ 10:35am

    Vonage phone calls

    I am a Vonage user, but they didn't CALL me about the IPO - I just had a voice mail about it... Apparently, they just put the messages into the VM system without actually making the call.

    reply to this | link to this | view in chronology ]

  • identicon
    plastic molding, 16 May 2009 @ 3:23am

    cool site!

    How's China printing industry developed this years, who can tell us? China based plastic injection molding services with low costs and supeior quality Steel and aluminum scaffolding for construction is a very useful tool.

    reply to this | link to this | view in chronology ]


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