Not only are the states taking action against spyware offenders, the Federal Trade Commission has spyware and adware on its radar. In November 2006, Zango--formerly known as 180solutions, a major distributor of adware--and two principals agreed to pay $3 million for using unfair and deceptive methods to download adware and obstructing users from removing this adware.

According to the FTC, Zango used third parties to install adware on consumers’ computers. The adware monitored Internet usage to then display targeted pop-up ads. The FTC also alleges that Zango’s third-party affiliates offered free content and software, like screen savers, games and peer-to-peer file sharing, without disclosing that Zango’s adware would also be installed. Third-party affiliates exploited security vulnerabilities in web browsers to install the adware. The adware has been installed more than 70 million times on U.S. computers and has displayed over 6.9 billion pop-up ads. Millions of consumers have received pop-up ads without knowing that their Internet usage was being monitored.

The FTC claims that Zango purposefully made it difficult to identify, locate and remove the adware. Examples include failing to label pop-up ads to identify their origins, naming adware files with names similar to those of core system software, and providing tools that failed to uninstall the adware.

In addition to the monetary settlement, Zango has agreed to get consumer consent before downloading their adware as well as provide a way to remove it. To read more about the FTC case, go to www.ftc.gov/opa/2006/11/zango.htm.

 

MAXAMINE