Yes! FTC is going after spyware! - Sitcoms Online Message Boards

James"Thunder"Early · 10-12-2004, 08:23 PM

http://www.washingtonpost.com/wp-dyn...2004Oct12.html

FTC Sues Alleged Spyware Distributor Oct. 12, 2004

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Security
Privacy

FTC alleges that Sanford Wallace distributed spyware that created pop-up ads on victims' computers in order to sell his company's anti-spyware software.
By Thomas Claburn

The Federal Trade Commission is taking its first legal action against an alleged spyware distributor. In a court filing last week, the commission asked the U.S. District Court of New Hampshire for an injunction and equitable relief against Sanford Wallace and his companies Seismic Entertainment Productions and SmartBot.Net, the FTC said in a press conference Tuesday in Washington.
Recalling charges against an Arizona firefighter arrested in 2002 for starting a fire in order to get paid for putting it out, the FTC alleges that Wallace distributed spyware that created pop-up ads on victims' computers in order to sell his company's anti-spyware software.

"The defendants were selling software to fix the problems they just caused," says Lydia Parnes, acting director of the FTC's Bureau of Consumer Protection. "No one should be pestered or spied on by people who illegally hijack their computers. To those who are purveyors of spyware: This may be our first case, but it won't be our last."

This isn't Wallace's first case, however. In 1998, EarthLink Inc. won a $2 million judgment in Los Angeles Superior Court against Wallace, the so-called "spam king," and his company at the time, Cyber Promotions Inc. Wallace was required to write a formal letter of apology to EarthLink members for any inconvenience he caused as a result of his spamming.

In a press release heralding the victory at the time, Garry Betty, president and CEO of EarthLink, said, "I can't tell you how happy I am to be rid of one of the Internet's most notorious spammers. The most important benefit of this judgment is the message we've sent to spammers that illegally tap our resources and clog up the Internet with this trash--we won't stand for it. On top of that, now they'll pay a very real penalty."

The penalty sought by the FTC could likewise be harsh, despite the fact that the FTC Act, under which the suit is brought, does not empower the agency to obtain punitive civil damages. Beyond an injunction to halt the distribution of spyware, the commission is seeking monetary relief in the form of restitution, court costs, and "ill-gotten gains."

"The law provides up to $10,000 per violation," says attorney Michael S. Elkin, an Internet privacy expert and national chair of commercial litigation and entertainment & media practices at Thelen Reid & Priest. "So, if you count up the number of violations that have occurred, you're talking about a fairly significant sum of money."

Should the FTC prevail, the action may create a precedent and discourage other potential spyware distributors, Elkin says. He acknowledges, though, that the law has limits, noting that legislation won't make spyware go away. "We know from peer-to-peer file sharing that despite the prosecutions from the recording industry and the Motion Picture Association that all the actions to try to clamp down haven't eradicated illegal file sharing," he says.

Future enforcement actions may be filed under stronger pending legislation, Elkin says. California's Consumer Protection Against Spyware Act is set to go into effect on Jan. 1. Congress is considering similar anti-spyware legislation.

While the FTC has not taken a position on this legislation, Parnes says, it does recognize that spyware is a growing problem. She also notes that Congress is considering cross-border fraud legislation, which would be particularly helpful in going after lawbreakers located overseas.

While the FTC lacks data to determine the extent of the spyware problem, the agency in April held a workshop on spyware at which Dell reported that from 10% to 12% of its tech-support calls can be blamed on spyware, and Microsoft reported that 50% of Windows crashes are caused by spyware.

According to the FTC's complaint, the defendants exploited vulnerabilities in certain versions of the Microsoft Internet Explorer Web browser to change users' home pages, modify the browser's search engine, download advertising and other software programs, and deliver "an incessant stream of pop-up advertisements."

During the question-and-answer session after the announcement, one journalist asked whether the commission recommended that consumers use a browser other than Internet Explorer that might be less vulnerable to attack. Parnes said the commission doesn't make such recommendations.

robyrob will like this

Brian · 10-12-2004, 08:32 PM

That's great but even if they do make spyware illegal, how are they going to enforce it? It's like a stop sign on an intersection. It's there and everyone's expected to follow the law but does that mean everybody will stop? They can try but I doubt it'll do a lot of good. They went after spam but it is still a problem.

Hollow · 10-12-2004, 08:48 PM

F-ck yeah. All spammers can go rot in the ground. It's just unbelievable they have the idea anyone is gonna care about companies or websites THAT DO NOTHING BUT ANNOY THEM to get their damn attention. i could go on and on about what stupidity and lack of common sense online advertising is but that's all i'll say.

Rhiannon · 10-12-2004, 08:53 PM

yay

*Pleasant Tomorrow* · 10-12-2004, 09:00 PM

Sweet

robyrob · 10-12-2004, 09:05 PM

Quote:

Originally posted by King Forrester
robyrob will like this

yep, but i'd like this even better:

Quote:

California's Consumer Protection Against Spyware Act is set to go into effect on Jan. 1. Congress is considering similar anti-spyware legislation.

I'd also like to see Microsoft do MORE to sew up the holes AND help educate users a little better.

James"Thunder"Early · 10-12-2004, 09:25 PM

Quote:

Originally posted by Brian
That's great but even if they do make spyware illegal, how are they going to enforce it? It's like a stop sign on an intersection. It's there and everyone's expected to follow the law but does that mean everybody will stop? They can try but I doubt it'll do a lot of good. They went after spam but it is still a problem.

It will be hard to enforce, but this will discourage them from putting this on your computer without your permission

NostalgiaAce777 · 10-12-2004, 11:15 PM

Well I know some spy thing has manifested itself into my computer, dam lil bugger won't go away. And need i say i have over 200 emails that are spam, I hope that Wallace sucker FRIES.

Mr. Television · 10-12-2004, 11:29 PM

Good. I've been infested with it for the last month.

Brent88 · 10-12-2004, 11:42 PM

GOOD!

Ohio8 · 10-13-2004, 03:15 PM

Good!!! I recently installed SpywareBlaster via snapfiles.com, and it dies a great job at keeping it off my puter. Sometimes before I got a fake Microsoft "warning dialog box" that seemed to come from MIcrosoft, and it stole the Internet cache files and Internet history files from my home computer while I was online.

theanswerman · 10-13-2004, 03:18 PM

yay!!!

PZelda · 10-13-2004, 03:33 PM

Quote:

Originally posted by robyrob
yep, but i'd like this even better:

I'd also like to see Microsoft do MORE to sew up the holes AND help educate users a little better.

....Meanwhile, a great solution to curb 99% of spyware is to switch over to...

FIREFOX

Dutabi84 · 10-13-2004, 04:12 PM

Quote:

Originally posted by PZelda
....Meanwhile, a great solution to curb 99% of spyware is to switch over to...

FIREFOX

And to avoid using crappy programs like Kazaa.

10-12-2004, 08:23 PM	#1
James"Thunder"Early Whoever's In New England Forum Veteran Join Date: Feb 23, 2004 Location: The Apollo Posts: 7,088	Yes! FTC is going after spyware! http://www.washingtonpost.com/wp-dyn...2004Oct12.html FTC Sues Alleged Spyware Distributor Oct. 12, 2004 More Stories on: Software Security Privacy FTC alleges that Sanford Wallace distributed spyware that created pop-up ads on victims' computers in order to sell his company's anti-spyware software. By Thomas Claburn The Federal Trade Commission is taking its first legal action against an alleged spyware distributor. In a court filing last week, the commission asked the U.S. District Court of New Hampshire for an injunction and equitable relief against Sanford Wallace and his companies Seismic Entertainment Productions and SmartBot.Net, the FTC said in a press conference Tuesday in Washington. Recalling charges against an Arizona firefighter arrested in 2002 for starting a fire in order to get paid for putting it out, the FTC alleges that Wallace distributed spyware that created pop-up ads on victims' computers in order to sell his company's anti-spyware software. "The defendants were selling software to fix the problems they just caused," says Lydia Parnes, acting director of the FTC's Bureau of Consumer Protection. "No one should be pestered or spied on by people who illegally hijack their computers. To those who are purveyors of spyware: This may be our first case, but it won't be our last." This isn't Wallace's first case, however. In 1998, EarthLink Inc. won a $2 million judgment in Los Angeles Superior Court against Wallace, the so-called "spam king," and his company at the time, Cyber Promotions Inc. Wallace was required to write a formal letter of apology to EarthLink members for any inconvenience he caused as a result of his spamming. In a press release heralding the victory at the time, Garry Betty, president and CEO of EarthLink, said, "I can't tell you how happy I am to be rid of one of the Internet's most notorious spammers. The most important benefit of this judgment is the message we've sent to spammers that illegally tap our resources and clog up the Internet with this trash--we won't stand for it. On top of that, now they'll pay a very real penalty." The penalty sought by the FTC could likewise be harsh, despite the fact that the FTC Act, under which the suit is brought, does not empower the agency to obtain punitive civil damages. Beyond an injunction to halt the distribution of spyware, the commission is seeking monetary relief in the form of restitution, court costs, and "ill-gotten gains." "The law provides up to $10,000 per violation," says attorney Michael S. Elkin, an Internet privacy expert and national chair of commercial litigation and entertainment & media practices at Thelen Reid & Priest. "So, if you count up the number of violations that have occurred, you're talking about a fairly significant sum of money." Should the FTC prevail, the action may create a precedent and discourage other potential spyware distributors, Elkin says. He acknowledges, though, that the law has limits, noting that legislation won't make spyware go away. "We know from peer-to-peer file sharing that despite the prosecutions from the recording industry and the Motion Picture Association that all the actions to try to clamp down haven't eradicated illegal file sharing," he says. Future enforcement actions may be filed under stronger pending legislation, Elkin says. California's Consumer Protection Against Spyware Act is set to go into effect on Jan. 1. Congress is considering similar anti-spyware legislation. While the FTC has not taken a position on this legislation, Parnes says, it does recognize that spyware is a growing problem. She also notes that Congress is considering cross-border fraud legislation, which would be particularly helpful in going after lawbreakers located overseas. While the FTC lacks data to determine the extent of the spyware problem, the agency in April held a workshop on spyware at which Dell reported that from 10% to 12% of its tech-support calls can be blamed on spyware, and Microsoft reported that 50% of Windows crashes are caused by spyware. According to the FTC's complaint, the defendants exploited vulnerabilities in certain versions of the Microsoft Internet Explorer Web browser to change users' home pages, modify the browser's search engine, download advertising and other software programs, and deliver "an incessant stream of pop-up advertisements." During the question-and-answer session after the announcement, one journalist asked whether the commission recommended that consumers use a browser other than Internet Explorer that might be less vulnerable to attack. Parnes said the commission doesn't make such recommendations. robyrob will like this
	__________________ Esther Anderson: Get thee behind me, Satan, but I'm gon' get behind you, 'cause I'm gonna put my foot in your--- Peggy Mitchell: Get outta my pub! You better pray you get the last laugh, it's a kick in the teeth when you don't get it.

10-12-2004, 08:48 PM	#3
Hollow Member Forum Superstar Join Date: Dec 16, 2001 Posts: 30,420	F-ck yeah. All spammers can go rot in the ground. It's just unbelievable they have the idea anyone is gonna care about companies or websites THAT DO NOTHING BUT ANNOY THEM to get their damn attention. i could go on and on about what stupidity and lack of common sense online advertising is but that's all i'll say.
	__________________ the artist formerly known as safety pin

10-12-2004, 08:53 PM	#4
Rhiannon oh, snap! Forum Star Join Date: Jul 19, 2002 Location: middle of nowhere Posts: 11,097	yay
	__________________ Nothing better the feeling is so fine Simply put I saw your love stream flow

10-12-2004, 09:00 PM	#5
Pleasant Tomorrow Member Forum Addict Join Date: Feb 19, 2003 Location: New York Posts: 69,524	Sweet
	__________________ my name is ashlee Welcome! Everything is fine.

10-12-2004, 11:29 PM	#9
Mr. Television 23 Years at Sitcoms Online Forum Icon Join Date: Jun 06, 2003 Location: Somewhere you're Not Posts: 62,147	Good. I've been infested with it for the last month.
	__________________ Sonny

10-12-2004, 08:32 PM	#2
Brian Member Forum Celebrity Join Date: Jun 23, 2001 Posts: 20,451	That's great but even if they do make spyware illegal, how are they going to enforce it? It's like a stop sign on an intersection. It's there and everyone's expected to follow the law but does that mean everybody will stop? They can try but I doubt it'll do a lot of good. They went after spam but it is still a problem.

10-12-2004, 11:15 PM	#8
NostalgiaAce777 The Furmite Frequent Poster Join Date: Mar 23, 2004 Location: Long to be living Floridays, BlueSkies and Ultraviolet Rays, Lookin for Better Days Posts: 283	Well I know some spy thing has manifested itself into my computer, dam lil bugger won't go away. And need i say i have over 200 emails that are spam, I hope that Wallace sucker FRIES.

10-12-2004, 11:42 PM	#10
Brent88 Member Forum Star Join Date: Aug 01, 2003 Location: Alabama Posts: 16,174	GOOD!
	__________________ Brent

10-13-2004, 03:15 PM	#11
Ohio8 Member Forum Star Join Date: Jul 29, 2003 Location: Wherever you aren't. Posts: 19,009	Good!!! I recently installed SpywareBlaster via snapfiles.com, and it dies a great job at keeping it off my puter. Sometimes before I got a fake Microsoft "warning dialog box" that seemed to come from MIcrosoft, and it stole the Internet cache files and Internet history files from my home computer while I was online.

10-13-2004, 03:18 PM	#12
theanswerman OMGWTFLOLZ Senior Member Join Date: Jun 04, 2003 Location: i lurve you! (israel) Posts: 2,636	yay!!!
	__________________ Originally posted by safety pin my cat woke up up at like 5:30 this morning. she wanted me to let her out of the room. then she came back in and wanted to play. rufus wainwright - in a graveyard This next song is a song about death, and...how you shouldn't be afraid of it. Also, I wrote it on acid, so it should be pretty good..."