FTC Files Complaint Against Alleged Spyware Distributor
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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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In an historic decision that split the FTC almost down the middle, it has issued a complaint against a patent holding company allegedly that apparently sued computer and network manufacturers for having followed the Ethernet standard.
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The US Federal Trade Commission last week sued an outfit that it says is using spyware to bombard computer users with pop-up ads in order to promote anti-spyware products called Spy Wiper or Spy Deleter.
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During the past few months, the Federal Trade Commission has filed deceptive- advertising cases against two distributors of what is called adware or spyware. The insidious form of software subjects consumers and their computers to unwanted advertising and surveillance.
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(InfoWorld) - CAMBRIDGE, Mass. -- Two of the agencies most actively involved in bringing cyber-criminals to justice in the United States have expressed opposing opinions over pending anti-spyware legislation. Even as a trio of spyware bills is moving forward on Capitol Hill, officials from the Center for Democracy and Technology (CDT) and the Federal Trade Commission (FTC) said their two organizations have differing views on the need for passage of the proposed laws. At a forum sponsored by the Anti-Spyware Coalition and held here at Harvard Law School on June 27, officials from the FTC and CDT -- a Washington-based nonprofit that has become a prominent Internet policy watchdog -- detailed areas where their organizations diverge regarding Congressional anti-spyware bills. The Anti-Spyware Coalition -- a security consortium backed by industry players including AOL, Dell, Google, McAfee, Microsoft, and Yahoo -- hosted the panel that brought legal experts from the two organizations together to air their differences. The discussion was hosted by John Palfrey, executive director of the Berkman Center for Internet and Society at Harvard Law, a well-known expert in the field of Internet security and privacy issues The three pieces of legislation being debated were the Internet Spyware Prevention Act of 2007 (I-SPY Act) and Securely Protect Yourself Against Cyber Trespass Act (SPY ACT) -- both of which passed vote in the U.S. House of Representatives in May and remain up for debate in the Senate -- and the Counter Spy Act of 2007, introduced before the Senate in mid-June. While both the FTC and CDT are actively involved in attempts to bring suspected purveyors of spyware to court and stop them from distributing illegal code to end-users, the agencies appear to be divided over whether the new laws will result in more prosecutions. The CDT supports passage of all three proposed bills, claiming that any additional laws that increase civil and criminal penalties against spyware brokers and better define illegal practices will prove helpful in bringing new cases -- despite the group's recognition of flaws in all three bills. For its part, the FTC contends that the new laws may only serve to muddle its ability to go after cyber-criminals when it finds them. In outlining each of the bills for the assembled audience, CDT Deputy Director Ari Schwartz highlighted the group's hopes for each of the measures. The I-SPY Act is the least controversial of the three bills in that it merely seeks to extend penalties established in the Computer Fraud and Abuse Act -- originally passed in 1986 -- and make the legal punishments for criminal hacking more severe. The CDT is fully behind the bill and it passed through House hearings with almost no opposition, proving its overall appeal, Schwartz said. The SPY ACT -- originally written by California Republican Rep. Mary Bono and passed by the House in previous sessions -- has proven more divisive; some businesses are expressing serious concerns about the proposal's limitations on consumer information gathering and the fact that the bill would supersede existing state anti-spyware laws. Even though the CDT is against the idea of undercutting existing state laws, the group still supports the measure as it raises penalties on some criminal cyber-crimes and directly addresses troublesome spyware affiliate distribution issues, said Schwartz. The Counter Spy Act was only recently re-introduced by Arkansas Democratic Sen. Mark Pryor. Previous backers of the bill were voted out of Congress last year, making chances slim that the legislation will move forward quickly. However, the CDT favors the bill's effort to more clearly define the parameters of illegal adware programs, said Schwartz. Issues over the weighting of state and federal anti-spyware measures shouldn't stand in the way of the proposed bills, whose benefits outweigh their loopholes and could help lead to more cases against cyber-criminals, the CDT leader contends. He cited the relatively light punishment handed out in cases brought against proven spyware brokers such as DirectRevenue and Zango as proof that existing laws are insufficient. "Raising penalties is useful, DirectRevenue should have been fined more than $5 million, Zango should have been fined more than $3 million, and they would have been if we had more direct penalties," Schwartz said. "Most people are supportive of these bills, CDT would be happy with raising penalties without pre-empting the states, but most companies looking at these bills are pushing for pre-emption." On the flip side, the FTC feels that existing laws provide it with sufficient power to go after spyware providers, even though the agency has only filed a dozen such suits in recent years. Tracy Shapiro, an attorney for the FTC's Advertising Practices Division, said the federal watchdog would like to see legislation that increases civil penalties against cyber-criminals, but it feels that the new bills could eventually get in its way in bringing accused spyware companies to trial. The Computer Fraud and Abuse Act remains broad enough to provide for continued prosecution of the most significant offenders, including spyware providers, she said. "In general there doesn't need to be a law specifically outlining spyware. There's a danger in saying 'no keystroke logging' because that's too specific and someone might look at the law and say another practice is OK," said Shapiro. "Sometimes it's hard to craft legislation to address specific types of technologies; it seems like a good argument against new laws if we can get judgments already." In addition to the potential to create loopholes by limiting their scope to existing threats, the specific nature of the bills could make them hard to apply to similar threats carried out in the future on mobile devices, as opposed to today's PC-based spyware schemes, she said. On the flip side, Schwartz said the CDT has been surprised and disappointed that the FTC hasn't brought any lawsuits based on the SafeWeb Act, passed by Congress in 2006 and aimed at helping the agency fight spam, spyware, and online fraud. The expert said it was particularly puzzling that the FTC hasn't taken advantage of elements of the SafeWab law aimed at aiding in the pursuit of cyber-criminals operating in other countries -- widely recognized as one of the biggest challenges in fighting malware and online fraud. "We've seen very little action under the SafeWeb Act; there have been some joint spyware cases with Canada where U.S.-based adware companies were working within Canada, which seemed like the perfect opportunities to use it," said Schwartz. "We thought [SafeWeb] was worth passing, and we want to see some action on it soon." Shapiro admitted that she didn't know of any cases brought by the FTC that have sought to apply the SafeWeb laws. In the area of international cyber-law enforcement, she said it remains a challenge to share information with some foreign governments. Other Anti-Spyware Coalition contributors remarked that they share the FTC's concerns over passing laws that may eventually serve to handcuff enforcers with outdated terms and conditions. "We're pretty much against the laws," said Alex Eckelberry, president of anti-spyware applications vendor Sunbelt Software. "We think they will do more harm than good."
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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.
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Scareware tactics backfire on Secure Computer A firm accused of marketing bogus anti-spyware software has paid $1m to settle a lawsuit brought by the US State of Washington.â¦
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The US Federal Trade Commission on Thursday asked a federal court to shut down an operation that it said disables users&#39; computers in an attempt to bully them into buying anti-spyware products.
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Complaint cites conflicts resulting from FTC chairman's husband working on antitrust cases for law firm that advises DoubleClick.
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Ask Eileen Harrington, associate director of the FTC's consumer protection bureau, questions about spam and consumer fraud on the Internet.
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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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The number of complaints filed with the Federal Trade Commission over Internet auctions has nearly doubled over the last two years, the agency said Tuesday.
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By Eric Benderoff, Chicago Tribune  Sep. 7--A federal lawsuit that pitted a Naperville attorney who wanted to bring class-action status against a company he says puts spyware on personal computers was dismissed Wednesday before reaching trial.
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THE US Federal Trade Commission has filed America&#39;s first case against software companies accused of infecting computers with intrusive spyware and then trying to sell people the solution.
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The U.S. Federal Trade Commission has settled a complaint with an online company it says was illegally selling telephone records.
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THE United States Federal Trade Commission (FTC) formally announced on Tuesday its first assault against spyware - bits of computer code that surreptitiously install themselves on the computers of Internet users to track their activities, push them to
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Federal authorities have asked a US District Court judge to shut down an operation that they said installed intrusive spyware on people&#39;s computers and then sold the victims anti-spyware software