The US consumer watchdog is now seeking a permanent ban on the
marketing practices of California-based Enternet Media, Inc. and
Conspy & Co.
Also named in the complaint are Lida Hakimi, Nima Hakimi and
Baback Hakimi, officers of the two firms, together with Ohio-based
affiliate Nicholas C Albert, who does business as Iwebtunes and
www.iwebtunes.com.
According to the FTC, the websites of the defendants and their
affiliates cause “installation boxes” to pop up on consumers’
computer screens.
In one variation of the scheme, the installation boxes offer a
variety of “freeware,” including music files, cell phone ring
tones, photographs, wallpaper, and song lyrics. In another, the
boxes warn that consumers’ internet browsers are defective, and
claim to offer free browser upgrades or security patches. Consumers
who download the supposed freeware or security upgrades do not
receive what they are promised; instead, their computers are
infected with spyware.
The agency’s complaint alleges that the software code tracks
consumers’ internet habits; changes consumers’ preferred homepage
settings; inserts new toolbars onto consumers’ browsers; inserts a
large side “frame” or “window” onto consumers’ browser windows that
in turn displays ads; and displays pop-up ads on consumers’
computer screens, even when consumers’ internet browsers are not
activated.
In addition, the FTC alleges that once the spyware is loaded on
consumers’ computers, it interferes with the functioning of the
computer and is difficult for consumers to uninstall or remove.
These practices are unfair and deceptive and in breach of the
Federal Trade Act, says the FTC.
The US District Court for the Central District of California
granted a temporary injunction against the defendants on 2nd
November. The FTC is now seeking a permanent injunction and redress
for consumers.
Microsoft, Webroot Software and Google helped the FTC with its
investigation.
