Monday, February 19, 2007

Adware Firm Pays $1.5 Million to Settle With FTC

Marketer Direct Revenue, which offered free content in exchange for software that delivered pop-ups and tracked users, paid the FTC to settle claims that it was distributing adware. Hopefully the FTC's investigations into adware (Zango settled in November) will greatly reduce the number of people duped into putting bogus software onto their computers.

The agreement requires Direct Revenue to give proper consent to users that adware was going to be installed and to stop deceptive distribution practices. The $1.5 million represented ill-gotten gains, but the penalty could have been much higher.

Direct Revenue put out a press release saying they were happy with the settlement because the "Agreement Containing Consent Order is a settlement that explicitly does not constitute an admission by Direct Revenue that the law has been violated."

Ah I love the legal-ese "wink-wink nudge-nudge" that allows alleged perpetrators to walk away without having to emblazon a red "A" (for adware) on all of their corporate attire and t-shirts. No harm no foul.

Posted By John Gartner at 09:49 AM
Permanent Link: Adware Firm Pays $1.5 Million to Settle With FTC | Comments (0)

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