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October 19, 2011 12:16 PM

SD Law Tested In Lawsuit Over Spam Email

SIOUX FALLS, SD


A Sioux Falls business and a California company are in a legal face-off over unsolicited emails.

Gage E-Services of Sioux Falls threatened legal action against Knowledge Matrix Inc. this summer after the latter company sent a spam email to Gage co-founder Matt Gage. Knowledge Matrix recently responded by asking a federal judge to bar Gage from taking legal action.

Gage has also filed suit against a Colorado-based company for sending sales messages.

Sioux Falls lawyer Patrick Glover represents Gage. He says the company wants to teach out-of-state companies how to conduct business in South Dakota. State law says marketers must already have relationships with people to whom they send unsolicited messages.

Knowledge Matrix counters that a 2003 federal law pre-empts state laws on commercial email.
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