An Analysis of Institutional Choices in Regulating Internet Spam

Abstract

The Internet has created a channel that allows for the rapid dissemination of information without regard to geographical boundaries. Unsolicited commercial e-mail (“UCE”), or “spam” as it is commonly known, is generated from enormous lists of e-mail addresses for the purpose of sending commercial information without seeking the e-mail account holder’s permission. Spam capitalizes on the unique nature of the Internet to engage in direct marketing in the fastest and most efficient way currently possible. Nevertheless, UCEs come with significant negative external costs. Furthermore, spam raises global legal issues in the areas of cyberspace privacy and security. This article approaches this topic by employing a law and economics analysis to identify appropriate institutional choices necessary for the regulation of UCEs. By comparing the legal frameworks of the United States, the European Union and Japan, this article evaluates the effectiveness of different legal approaches and proposes an international legal framework for cooperation in regulating UCEs.