Adware Firm Settles for $1.5M: FTC

Adware firm DirectRevenue LLC and four of its principals have agreed to settle charges that they used unfair and deceptive methods to download adware onto consumers’ computers and then obstruct them from removing it, the Federal Trade Commission announced last week.

The settlement bars future downloads of DirectRevenue’s adware without consumers’ consent and requires DirectRevenue to provide a reasonable and effective way for consumers to locate and remove the adware from their computers, the FTC said.

The settlement also requires DirectRevenue to pay $1.5 million, according to the FTC.

The FTC alleged that DirectRevenue has installed its adware on consumers’ computers that monitors their Internet use in order to display targeted pop-up ads.

The FTC alleges that DirectRevenue and its affiliates frequently offered consumers free content and software, such as screensavers, games, and utilities, without disclosing adequately that downloading them would result in installation of the adware.

The FTC charged that DirectRevenue deliberately made it difficult to identify, locate, and remove the adware once it was installed.

The FTC settlement bars DirectRevenue from delivering ads to any consumer’s computer through adware that was installed on the computer before October 1, 2005.

However, DirectRevenue can send these consumers up to three opt-in notices asking them if they want to continue receiving the ads and telling them of the FTC settlement, the commission reported. The notices also must provide simple instructions on how consumers can uninstall DirectRevenue’s adware program, the FTC said.

The Commission complaint named DirectRevenue LLC, Direct Revenue Holdings LLC, Joshua Abram, Daniel Kaufman, Alan Murray, and Rodney Hook. They are based in New York, New York