FTC Settles With Security Software Marketers
Bonzi Software Inc., a California company, and its owners have settled Federal Trade Commission charges that they falsely claimed that their InternetALERT software significantly reduces the risk of Internet attacks.
Bonzi advertised through banner, button, and pop-up ads and on its Web site, www.bonzi.com.
The FTC alleged that software provides only limited protections for computers and the information stored in them.
As part of the settlement, the respondents are prohibited from making false claims about the security or privacy attributes of InternetALERT and other software products.
According to the FTC, Bonzi Software and its principals, Joe and Jay Bonzi, market software products, including InternetALERT, a computer security product. The software, which costs $49 for a one-year subscription.
These ads stated that without InternetALERT hackers can “Steal your Credit Card & Personal Information; Read Your E-Mail; Plant a Virus or Worm; or Steal Online Banking Information!” and directed consumers to download the software now.
The FTC charged that the software does not significantly reduce the risk of unauthorized access into computers and information stored in them and provides only limited protection for computers against intrusions by hackers, viruses, worms, spyware, and other Internet threats.
In addition, according the complaint, the software lacks security features that provide virus protection to computers and prevent personal information stored on them from being sent to unauthorized parties.
The consent order bars the respondents from misrepresenting the extent to which any software can detect and reduce the risk of Internet attacks, or can otherwise enhance security or privacy. As part of the settlement, the respondents also are ordered to notify current InternetALERT subscribers of the FTC’s action and allow them to cancel their service and receive a prorated refund.
