Accusearch operated Abika.com. It sold personal telephone records. Customers could buy details of incoming or outgoing calls

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Accusearch operated Abika.com. It sold personal telephone records. Customers could buy "details of incoming or outgoing calls from any phone number, prepaid calling card or Internet Phone." This service applied to cell phones and landline phones. The FTC sued, contending the practice violated the Telecommunications Act. Accusearch, which stopped selling phone records when the suit was filed, contended that individuals who used phone information improperly violated the Telecommunications Act, but Accusearch did not by the fact of selling information. The trial court agreed with the FTC and issued a permanent injunction against Accusearch from offering the service. Accusearch also had to give up $199,693 in profits from the sale of phone records. It appealed, contending that the action did not violate the Federal Trade Commission Act (FTCA).

1. A permanent injunction is a very strong order that is not often imposed. What was the justification for it here?
2. Most business owners favor clamping down on this kind of operation. Why would that be?

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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