FTC Sues Alleged Spyware Distributors
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The US Federal Trade Commission last week filed a legal complaint against two companies that allegedly infected computers with spyware and pop-up advertising, then tried to sell their owners spyware-blocking software.
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The Federal Trade Commission is going after spyware, bits of computer code that install themselves on the computers of Internet users to track or disrupt their online activities.
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The Federal Trade Commission on Thursday filed the first case in the country against software companies accused of infecting computers with intrusive "spyware" and then trying to sell people the solution.
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FTC alleged in 2003 complaint that defendants had failed to disclose the terms of Internet service packages.
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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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Microsoft filed lawsuits late last week against eight resellers nationwide for allegedly buying and selling counterfeit and used Certificate of Authenticity labels.
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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) - The U.S. Federal Trade Commission has asked a federal court to make two Florida companies stop telephone pretexting and to pay back victims of the practice. One of the companies, Action Research Group, has been linked in press reports to last year'sÂ Hewlett-Packard pretexting scandal, which led to theÂ resignation of HP Chairman Patricia DunnÂ last September. The second company, Eye in the Sky Investigations, has "performed services" for Action Research Group, the complaint said. Eye in the Sky also was called to testify before a congressional investigation into the matter. In a complaint filed Wednesday in U.S. District Court in Orlando, the FTC claims that the practice of pretexting violates the U.S. Telecommunications Act of 1996. Telephone pretexting is illegal in some states, but Thursday's complaint seeks to clarify where the FTC stands on the practice. "Selling the records constitutes an invasion of privacy that could endanger the health and safety of consumers," the FTC said in a statement released Thursday. It is also a violation of federal law, the statement says. HP's top executives became embroiled in a pretexting scandal late last year. While trying to clamp down on a boardroom leak dating back to 2005, HP hired private investigators who obtained telephone records of company employees and journalists by falsely representing themselves as account holders or telephone company employees. The scandal at HP also led to the resignation of Ann Baskins, formerly HP's senior vice president and general counsel, and Kevin Hunsaker, the company's senior legal counsel. On Thursday, an HP spokesman said he welcomed the FTC's move. "HP is opposed to pretexting and has expressly called for the practice to be made illegal," said HP's Ryan Donovan. "We support the FTC's efforts to permanently halt telephone record pretexting." All five FTC commissioners voted to authorize the complaint, the FTC said.
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The war of words between antivirus vendor Kaspersky Lab and rival Rising Tech, has intensified with a defamation lawsuit.
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Microsoft has sued eight US computer resellers who it says bought or sold counterfeit Certificate of Authenticity labels or genuine labels that had been separated from their related software, all in breach of copyright and trade mark laws.
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With Congress considering new legislation to increase penalties against spyware companies that install programs on people&#39;s computers without their knowledge, the Federal Trade Commission last week filed a complaint against Sanford Wallace, the New
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FTC charges that Petco Web site left customer data exposed.
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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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Malicious-toolbar distributor pays more than $2 million in federal settlement.
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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.
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Movieland.com is the second company to be sued under Washington's spyware law.
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(InfoWorld) - A bogus e-mail message supposedly sent by the U.S. Federal Trade Commission contains spyware and targets corporate and banking executives as well as consumers, the FTC said Monday. The bogus e-mail poses as an acknowledgment of an FTC complaint filed by the recipient and includes an attachment. E-mail recipients who open the attachment to this e-mail can download malicious spyware onto their computers, the FTC said. Recipients shouldn't open the e-mail; instead they should delete the message, the FTC advised. The hoax e-mail is personalized, containing the name of the recipient and their business. The bogus message explains how the complaint will be used and says, "Attached you will find a copy of your complaint. Please print a hard copy of the complaint for your records in the upcoming investigation." Consumers can learn more about protecting themselves from malicious spyware and bogus e-mail messages at OnGuardOnline.gov, a Web site created by the FTC in partnership with other federal agencies and the technology industry to help consumers stay safe online. The site includes information on spyware and phishing.