‘Spyware’ Marketer Settles with FTC
An online marketer who allegedly used the allure of “free” music downloads to spread malicious computer code is settling Federal Trade Commission charges he violated federal law. The defendant, who was allegedly paid to distribute the code by the company that developed it, will give up all of his ill-gotten gains.
The order entered against Nicholas C. Albert permanently bars him from interfering with consumers’ computer use. That includes distributing software codes that track their Internet activity or collect other personal information, change their preferred homepage or other browser settings, inserts new toolbars onto their browsers, install dialer programs, insert advertising hyperlinks into third-party Web pages, or install other advertising software, according to the FTC.
The order also prohibits Albert from making false or misleading representations; from distributing advertising software and spyware and requires he perform substantial due diligence and monitoring if he is to participate in any online affiliate program, according to the FTC.
Albert will also give up his “ill-gotten gains” of $3,300, continued the FTC.
According to the FTC complaint, Albert engaged in deceptive practices when he bundled Enternet Media’s malware with “free” music made available to bloggers and others at his Web sites: iwebtunes.com and iwebmusic.com. Bloggers who selected a music file from Albert’s site also received a bundled piece of java script code that caused their blogs to display Enternet’s deceptive software installation boxes. Then, whenever a consumer landed on a blog that had downloaded files from Albert, the consumer would not only hear music but would also see the pop-up.
The pop-ups purported to offer free browser upgrades or security upgrades. However, if a consumer downloaded the “upgrade” they automatically installed Enternet’s malicious code on their computer, according to the FTC.
The Commission alleged that the code interfered with the functioning of the computer and was difficult for consumers to uninstall or remove. In addition, the code tracked consumers’ Internet activity, changed their home page settings, inserted new toolbars onto their browsers, inserted a large side “frame” or “window” onto browser windows that in turn displayed ads, and displayed pop-up ads, even when consumers’ Internet browsers were not activated.
The FTC’s case was brought with the assistance of the Microsoft Corp., Webroot Software Inc., and Google Inc.
The case is on file at U.S. District Court for the central district of California in Los Angeles.
