ValueClick Inc. will pay $2.9 million to settle an allegation of deceptive marketing practices lodged against it by the Federal Trade Commission. The settlement announcement coincided with the Westlake Village-based company reporting its fiscal year 2007 results. The FTC alleged that ValueClick violated the CAN-SPAM Act and the FTC Act. The payment is not an admission of liability or that the company violated any laws. “We have worked with the FTC and have reached an agreement on the standards and practices that will govern our lead generation business going forward,” said David Yovanno, chief operating officer of U.S. Media. “We believe this settlement will also help set the guidelines for the lead generation industry as a whole, and we will continue to participate in the Internet Advertising Bureau to help establish best practices to that end.” The $2.9 million was included within general and administrative expenses for the fourth quarter. For fiscal 2007, ValueClick reported net income of $71.2 million, or $0.71 per diluted share, on revenues of $645.6 million. That is a 14 percent increase from the net income of $62.6 million, or $0.62 per diluted share, on revenues of $545.6 million for fiscal year 2006. The company ended the fiscal year on a strong note and while uncertainties are an industry concern, ValueClick is positioned to generate growth in 2008, said CEO Tom Vadnais. “Our diversified offerings and scale make us a preferred partner for major digital marketers in the U.S. and abroad,” Vadnais said.
ValueClick Settles Deceptive Marketing Claim