Spyware or adware can be deposited on a computer via an e-mail
attachment or as a web site download. It tends to make computers
sluggish and less efficient, which is very frustrating for
users.
The FTC is thought to have taken the action following a
complaint earlier in the year by US rights group the Center for
Democracy and Technology, filing suit on Thursday against Seismic
Entertainment Productions Inc and SmartBot Net Inc, together with
their operator, New Hampshire based Sanford Wallace.
The suit, filed in the US District Court for the District of New
Hampshire, alleges that Seismic and SmartBot Net advertise
anti-spyware software called Spy Wiper and Spy Deleter by means of
pop-up ads that are shown to internet users who visit web sites
controlled by the companies.
But the FTC says the defendants have also exploited
vulnerabilities in Microsoft's Internet Explorer web browser, that
allows them to secretly install software onto users' computers that
can change their home page, modify the Internet Explorer search
engine, download adware and spyware, and cause pop-up ads to
bombard the computer screen.
"Defendants' course of conduct in marketing the Spy Wiper and
Spy Deleter software has compelled consumers to either spend $30 to
purchase the advertised software, or otherwise spend substantial
time and money to resolve these problems with their computers,"
says the suit.
The FTC has asked the court for an injunction and for the
recovery of "ill-gotten gains".
In a statement on one of his web sites, Sandford Wallace
confirmed that he and his companies would be cooperating with the
investigation. "If in fact it is found that any of our methods are
in violation of any current laws, we will immediately cease such
activities," he said.
The suit comes shortly after Congress passed two bills aimed at
tackling the problem of spyware.
The "Securely Protect Yourself Against Cyber Trespass Act", or
SPY ACT, proposes to protect individuals from unknowingly
downloading spyware by requiring that consumers be given notice of
and consent to the software being downloaded. It also seeks to
impose heavy financial penalties for violations of the Act.
The Internet Spyware (I-Spy) Prevention Act on the other hand
takes a narrow approach to the issue, aiming to criminalise those
who deliberately access a computer without permission.
