CIO Executive Council Members Call for Do-Not-Spam Registry; New Poll Shows Majority of CIOs find CAN-SPAM Act Ineffective.

Business Editors/High-Tech Writers

FRAMINGHAM, Mass.--(BUSINESS WIRE)--June 15, 2004

A new poll of chief information officers (CIOs) conducted by the CIO Executive Council(TM) (founded by IDG's CXO Media Inc. and CIO magazine) reveals the majority (55%) of CIOs want the Federal Trade Commission (FTC) to launch a "Do-Not-Spam" registry similar to the "Do-Not-Call" registry launched in June 2003. This news comes as the FTC prepares its forthcoming report to Congress on the feasibility of creating a "Do-Not-Spam" list.

The Do-Not-Spam registry was originally introduced in the CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography and Marketing Act). Launched January 1, 2004, the CAN-SPAM Act also sets civil penalties for common spamming practices such as falsified subject lines. Interestingly, results of the CIO Executive Council poll show the majority of CIO respondents (59%) find the CAN-SPAM Act to be "not at all helpful" in deterring the amount and type of spam their organizations receive. Only five percent (5%) find it to be "very or extremely" helpful.

"Spam is an ongoing headache for CIOs who are looking for more effective ways to ease spam's disruptiveness," says Martha Heller, Director of the CIO Executive Council. "Our members are holding out hope that a Do-Not-Spam registry will provide the solution and relief that the CAN-SPAM Act has not."

Despite their spam struggles and expenses (39% say their companies spent more than $100,000 in the past year trying to control spam), CIOs are divided as to how spammers should be prosecuted. Forty-percent (40%) believe longer jail sentences will provide a greater deterrent while 28% disagree and 30% are unsure. However, most CIOs (58%) agree that spam offenders should be prosecuted at both the federal and state levels.

"Catching spammers is hard enough but determining the right punishment is almost the greater challenge," says Mark Hall, General Manager of the CIO Executive Council and CIO of CXO Media Inc. "The state of Maryland imposes longer jail sentences while the federal CAN-SPAM Act imposes greater fines. The jury is still out on what type of penalty will be the best deterrent."

Complete Poll Results:

1.) On January 1, 2004, Congress passed the "Controlling the Assault
of Non-Solicited Pornography and Marketing Act of 2003" (i.e.,
CAN-SPAM Act). How helpful has the CAN-SPAM Act been in deterring the
amount and type of spam your organization receives?
 2%      Extremely helpful
 3%      Very helpful
 5%      Helpful
20%      Somewhat helpful
59%      Not at all helpful
 9%      Unsure

2.) Has the CAN-SPAM Act had a noticeable effect on your IT
operations?
 8%      Yes
83%      No
 7%      Unsure

3.) Has the CAN-SPAM Act hindered your company's marketing efforts
and/or outgoing email communication (newsletters, invitations, etc.)?
13%      Yes
76%      No
 8%      Unsure

4.) Should the US Federal Trade Commission launch a "Do-Not-Spam"
registry list akin to the "Do-Not-Call" registry?
55%       Yes
27%       No
16%       Unsure

5.) If no, why not?
34%       It would be impossible to enforce
23%       It's a great idea in theory but would never work
           logistically
18%       It would not reduce the amount of spam my company receives
14%       It would reverse all the cost-effective benefits email
           affords individuals and businesses of all sizes
  9%      It would greatly hinder a company's ability to market goods
           and services

6.) According to a new law recently signed by Maryland Governor Robert
Ehrlich (R), people who falsify their identity, address or subject
lines in spam e-mail messages face up to 10 years in jail and fines up
to $25,000. (NOTE: The federal CAN-SPAM law permits up to five years
in jail and fines up to $6 million). Do you think the terms of this
state law--a longer jail sentence but lower fine ceiling--will be more
effective in deterring spammers than the terms of the federal CAN-SPAM
act?
28%       Yes
40%       No
30%       Unsure

7.) At what level should spam be prosecuted?
19%       Federal level
 3%       State level
58%       Both federal and state
14%       Neither will be effective
 4%       Unsure

8.) How much time do you estimate your employees spend filtering SPAM?
28%       Less than one hour per week
46%       One to five hours per week
 8%       Five to ten hours per week
12%       More than ten hours per week
 3%       Unsure

9.) If you had to quantify the financial impact of SPAM, how much
would you estimate your company has spent in the past year?
 1%      None
 4%      Less than $15,000
15%      $15,001-$30,000
35%      $30,001-$100,000
39%      More than $100,000
 4%      Unsure

10.) How much of your IT budget is devoted to stopping SPAM?
58%       0-0.5%
22%       0.9%
11%       1-2%
 2%      3-4%
 2%      4-5%
 1%      More than 5%
 0%      None
 3%      Unsure

Total Respondents: 141 chief information officers
Source: CIO Executive Council News Poll

Methodology:

The CIO Executive Council commissioned this online survey between June 2 and June 9, 2004 among chief information officers who are members of the CIO Executive Council or who qualify for Council membership. (All Council members must serve as the senior-most IT executive in their organization and have purchase authority for their organization's information technology products and services, as well as strategic oversight of the IT function). An email invitation containing a link to the survey sent to 687 CIOs yielded 141 completed surveys.

About the CIO Executive Council

Launched in April 2004, the CIO Executive Council (www.cioexecutivecouncil.com) is a professional organization of CIOs created for the purpose of achieving lasting change within critical industry, academic, media and governmental groups. The Council is founded by CXO Media, Inc., which publishes CIO magazine (launched in 1987), www.cio.com, the CIO Insider, CSO magazine, CSOonline.com, darwinmag.com, www.cmomagazine.com and the forthcoming CMO magazine.

CXO Media serves CIOs, CEOs, CFOs, COOs and other corporate officers who use technology to thrive and prosper in this new era of business. The company strives to enhance partnerships between C-level executives, as well as create opportunities for information technology (IT) and consumer marketers to reach them. The company also produces Executive Programs, a series of conferences that provide educational and networking opportunities for corporate and government leaders. CXO Media is a subsidiary of International Data Group (IDG), the world's leading technology media, research and conference company.