FTC Goes After Spyware Operations
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The FTC has taken legal action in an effort to shut down Seismic Entertainment Productions and SmartBot.Net -- two companies that have become notorious as distributors of spyware.
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(InfoWorld) - More than two years after a security researcher first called attention to Sony BMG's use of a stealth program to enforce digital rights management on its music CDs, the company reached a deal with the U.S. Federal Trade Commission over the incident, the FTC announced on Tuesday. In a deal that was approved by a 5-0 vote by the FTC, Sony agreed to clearly disclose limitations on consumers' use of its music CDs and promised not to collect information for marketing or install software without consumers consent, the FTC said. The company also agreed to reimburse consumers up to $150 for computers damaged by the program, the FTC said. The settlement marks an end to a long and embarrassing incident for the company, which began when Mark Russinovich, an expert on Windows security of WinTernals Software, now part of Microsoft, published the results of his investigation into a rootkit that had infiltrated his Windows machine. Russinovich's research uncovered a stealth program, dubbed "XCP," distributed on CDs from Sony BMG that silently installed and concealed itself on the machines of customers who played the CD. The revelation and Sony's awkward response to it -- first denying that there was any problem with the XCP program, then making halting efforts to release programs to remove XCP -- set of a chorus of criticism on blogs and in the mainstream press. Subsequent investigation revealed that the XCP program was poorly conceived, hastily written and could be used by hackers to conceal their own malicious programs on systems that had the XCP program installed. Eventually, Sony posted a software removal program for the XCP and conducted a widescale recall of XCP enabled CDs. But the incident was a watershed, prompting discussions of the competing interests of copy protection by corporations and consumers' right to privacy. In the consent agreement announced today, the FTC said that "the installation of software without consumer consent that exposed consumers' computers to security risks was unfair and violated federal law." Hiding the software and failing to provide a way to remove it were also violations of U.S. law, the FTC said. The company will have to offer its removal program for another two years and will have to continue allowing customers to exchange CDs with the concealed software purchased before December 31, 2006. The company will also have to provide retailers with financial inducements to return XCP infected CDs and allow the FTC to continue to monitor its compliance with the consent decree.
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WASHINGTON - Spyware legislation that would allow fines of up to $3 million for makers of software that steals personal information from a user's computer or highjacks its browser will get a second look after the U.S. Congress failed to pass the legislation in 2004.
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The U.S. Federal Trade Commission (FTC)&#160;has settled a complaint with a Web-based company it accused of selling people&#39;s telephone records without permission, the agency said Monday.
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This is pretty interesting, seems as though Microsoft has acquired an anti-spyware company noone&#39;s ever heard of. I know spyware and adware removal software is big business now but I&#39;ve never heard of Giant Company Software Inc.
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The U.S. Federal Trade Commission (FTC) has asked a federal court to require an alleged Web page hijacking operation to obey previous orders barring unfair and deceptive practices.
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When technicians examined the PCs of 329 respondents, they found 80 percent loaded with dozens of spyware programs that track the user&#39;s browsing habits.
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For millions of PC users, the privacy-snatching programs known as spyware have been nothing but a headache as they swipe personal information, slow systems to a crawl and crash computers.
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(InfoWorld) - An operation that allegedly installed illegal spyware on computers will give more than US$2 million to settle a U.S. Federal Trade Commission (FTC) complaint. The FTC has obtained a settlement order against Enternet Media Inc., Conspy & Co. Inc., Lida Rohbani, Nima Hakimi and Baback Hakimi, all based in California, the agency announced Wednesday. The defendants distributed software called Search Miracle, Miracle Search, EM Toolbar, EliteBar and Elite Toolbar, the FTC said. In an order issued by Judge Christine Snyder of the U.S District Court for Central California, the defendants are prohibited from interfering with computer use, such as distributing software code that tracks Internet activity, changes browser settings and inserts new advertising toolbars onto browsers. The defendants also are permanently prohibited from making misleading representations regarding the performance, features, and cost, of any software, including misrepresenting that the code is an Internet browser upgrade or other computer security software, music, song, lyric or cell phone ring tone. The Web sites of the defendants and their affiliates caused installation boxes to pop up on consumersâ computer screens, the FTC said in its complaint. In one variation of the scheme, the boxes offered a variety of freeware, including music files, cell phone ring tones, photographs, wallpaper and song lyrics. In another, the boxes warned that consumersâ Internet browsers were defective, and offered free browser upgrades or security patches. Users who downloaded the supposed freeware or security upgrades did not receive what they were promised, Instead, their computers were infected with spyware that interfered with their computers and was difficult to uninstall, the FTC said. The defendants' software tracked Internet activity, changed home-page settings and inserted a large frame onto browser windows that displayed advertisements, the FTC said. At the FTCâs request, the court froze the operationâs assets last fall and ordered it shut down. The settlement requires the defendants to give up just over $2 million of their spyware-related profits and includes a suspended judgment of $8.5 million. The FTC brought the case with assistance from Microsoft Corp., Webroot Software Inc. and Google Inc., the agency said.
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InfoWorld - As pests, adware, and other malicious applications infiltrate corporate computers with greater frequency, some vendors, including McAfee and Computer Associates, are bundling anti-spyware into security management suites, giving IT more tools to control the hazard.
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The Federal Trade Commission formally announced yesterday its first assault against spyware - bits of computer code that surreptitiously install themselves on the computers of Internet users
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The FTC said it believes the companies induced computer users to buy its spyware-eradication software, sold for US$30 and bearing names such as Spy Wiper and Spy Deleter, after first infecting
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FTC says pretexting violates federal law, targets companies involved in HP scandal.
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FTC Filing Targets Malicious Spyware  Spyware has come under target of the Federal Trade Commission with a new complaint filed in federal court which is requesting that two Internet based advertising and software firms be closed. The FTC filing was made last week with a press conference to be scheduled for ...
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Can't pay, will only pay $50K Two alleged spyware operations have settled lawsuits brought by the US Federal Trade Commission.â¦
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Scammers are sending out virus-laden e-mails claiming to have information on complaints filed with the U.S. Federal Trade Commission, the FTC warned Monday.The e-mail appears to come from frauddep@ftc.gov -- a spoofed address -- and it includes a malicious attachment that downloads keylogging software, which is used to steal sensitive information such as passwords and account numbers.&quot;While the e-mail includes the FTC seal, it has grammatical errors, misspellings, and incorrect syntax,&quot; the FTC said in an alert , released Monday. &quot;Recipients should forward the e-mail to spam@uce.gov and then delete it.&quot; E-mail sent to this uce.gov address goes into the FTC&#39;s spam database, which is used by investigators.Online scammers often masquerade as government agencies such as the Internal Revenue Service in the hopes of tricking unsuspecting victims into clicking on attachments or visiting malicious Web sites.
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U.S. Federal Trade Commission says that a bill stalled in Congress would give it the tools it needs to fight spyware.