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FTC Files Spyware Case Against Sanford Wallace
An anonymous reader writes "Legendary reformed spammer Sanford Wallace is apparently back in business, under suspicion by the Feds for advertising a trojan spyware removal tool. Wallace 'admit[s] no wrongdoing', but in the next breath says 'The FTC is trying to enforce a law that hasn't even passed', referring to the proposed anti-spyware legislation currently in Congress."
The Union Leader has more information. The part about the bankruptcy tells much about Wallace's character.
The Internet Spyware Prevention Act would give the Justice Department $10 million to crack down on companies and others that secretly install spyware and those who attempt to dupe victims into releasing personal details and financial information in e-mail scams.
What would you do with $10 Million. Could it be better used for education as these rulings wont cover EULAs nor the 600 North Korea Hackers.
In America, we would like to think all the world encompass the borders of the US, whereby we can extend our laws to any region yet there are some countries that refuse to enforce unscrupulous acts. What would North Korea do to this guy?
As for software and being installed; EULAs will just have a clause accommodating for the future law. Should something in a capitalist society prevent two parties agreeing to contract terms? If this guy's EULA didn't state the condition then he violated present laws such as fraud.
Yeah, because FireFox has never been vulnerable to same stuff as IE like those jpg vulnerabilities.... What's that you say? It was? How about the Shell Exploit then? Also vulnerable? Well I guess any software requires careful use then.
-]Phreak Out[-
Whatever happened to "innocent until proven guilty?"
Innocent until proven guilty is an ideal and a legal technicality, but its much less than that in reality. Although you are legally "innocent", if you do not post bail or bond or the judge determines that your crime does not warrent bail or bond, you stay in jail until you are proven guilty. Yes, that means that an innocent person is expected to stay in jail right beside the guilty and convicted people.
Another thing that kills me is when the press says that the accused is "pleading innocent", and there is no such plea, your innocent by default, you can plea not guilty, but not innocent.
What he's doing is installing basic run of the mill spyware that has ads for spyware removal software:
Read my blog: HansMast.com
Is there anything else the entire industry has accepted that you want to suggest is wrong?
Spyware, like the CoolWebSearch trojan, exploit ActiveX and some other security holes in M$ JVM to secrectly install itself onto the victim's machine. The user doesn't have to do anything wrong. Simply visiting a website that has trojan embedded in one of its webpages is enough to get infected. IE is more than happy to allow this shit to happen without warning the user. This should never be allowed to happen. But for reasons unknown, M$ seems compelled to offer the keys to the system to the IE web browser. This is stupid. It's why you don't want to use IE.
Spyblot blocked Avenue A,Inc and Doubleclick installs when viewing this article.
According to the Yahoo article, he's not actually being sued under the anti-spyware law. It looks like he's being sued under computer misuse legislation:
The FTC alleges the defendants have unfairly: changed consumers' Web browsers, installed advertising and other software programs, and compelled purchase of anti-spyware software.
It looks like its the compulsion he's placed on his customers to buy his products because of his own tampering with their machines that's getting him landed in trouble. (IANAL, etc etc).
The ways of gods are mysteriously indistinguishable from chance.
TThat's what it costs me to reload .45ACP ammo, I'd be HAPPY to donate $0.48 for justice! ("Two in the chest, one to the head, and even the Jolly Green Giant will fall down dead" remebered THAT little ditty from boot camp...THANKS for the wisdom, Uncle Sam!)
Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti
The FTC lawsuit is against Seismic Productions, which used to be registered to Walt Rines, Wallace's old spamming partner. Rines currently distributes a Trojan horse program called Kazanon that (falsely) claims to make users of the Kazaa file-sharing program invisible to the authorities. When asked about the legality of Kazanon, Rines said "If there's a grey area, I'm all for taking the opportunity, from a marketing standpoint."
Just incase anyone cares:
UNITED STATES DISTRICT COURT
DISTRICT OF NEW HAMPSHIRE
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
SEISMIC ENTERTAINMENT
PRODUCTIONS, INC.,
SMARTBOT.NET, INC., and
SANFORD WALLACE,
Defendants.
Civil No.
COMPLAINT FOR INJUNCTION
AND OTHER EQUITABLE RELIEF
Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), for its Complaint alleges as follows:
1. The Commission brings this action under Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. 53(b), to obtain preliminary and permanent injunctive relief, restitution, disgorgement and other equitable relief against the Defendants for their unfair acts or practices in connection with their marketing and their distribution of software programs to consumers in violation of Section 5(a) of the FTC Act, 15 U.S.C. 45(a).
JURISDICTION AND VENUE
2. This Court has subject matter jurisdiction over this matter pursuant to 15 U.S.C. 45(a), 52, and 53(b); and 28 U.S.C. 1331,1337(a) and 1345.
3. Venue in the United States District Court for the District of New Hampshire is proper under 15 U.S.C. 53(b), as amended by the FTC Act Amendments of 1994, Pub. L. No. 103-312, 108 Stat. 1691, and 28 U.S.C. 1391(b) and (c).
PLAINTIFF
4. Plaintiff, the Federal Trade Commission, is an independent agency of the United States government created by statute. 15 U.S.C. 41 et seq. The Commission enforces Section 5(a) of the FTC Act, 15 U.S.C. 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce. The Commission is authorized to initiate federal district court proceedings by its own attorneys to enjoin violations of the FTC Act and to secure such equitable relief as may be appropriate in each case, including restitution for injured consumers, consumer redress, and disgorgement. 15 U.S.C. 53(b).
DEFENDANTS
5. Defendant Seismic Entertainment Productions, Inc. ("Seismic") is a New Hampshire corporation with its principal place of business located at 11 Farmington Road, Rochester, New Hampshire 03867. Since at least December 2003, and continuing thereafter, Seismic has marketed various products, including purported "anti-spyware" software called "Spy Wiper" and "Spy Deleter," on behalf of others. Seismic advertises these products through "pop-up" advertisements displayed to consumers using various Internet web sites that it controls, including the web sites at www.default-homepage-network.com and downloads.default-homepage-network.com. Seismic also downloads to and installs on consumers' computers various advertising and other software programs, including Favoriteman, TrojanDownloader and Clearsearch. Seismic transacts or has transacted business in the District of New Hampshire.
6. Defendant SmartBot.Net, Inc. ("SmartBot") is a Pennsylvania corporation with its corporate address at 3 Cobblestone Court, Richboro, Pennsylvania 18954, and its principal place of business at 495 Route 9, Barrington, New Hampshire 03825. Since at least December 2003, and continuing thereafter, SmartBot has marketed various products, including purported "anti-spyware" software called "Spy Wiper" and "Spy Deleter," on behalf of others. SmartBot advertises these products through popup advertisements displayed to consumers using various Internet web sites that it controls, including the web sites at www.passthison.com, object.passthison.com, and www.smartbotpro.net. In addition, the pop-up advertisements served by SmartBot also are displayed when a computer user visits various Internet web sites controlled by Seismic, including, but not limited to, www.default-homepage-network.com. SmartBot transacts or has transacted business in the District of New Hampshire.
7. Defendant Sanford Wallace ("Wallace") is or has been President and owner of Defendants Se
"Huh? Advertising a program that is supposed to protect/remove spyware but acts as spyware or a trojan does not at all compare to being pulled over by a cop."
It's hopeless. They'll always moderate-up daft analogies. It's part of the culture.