FTC Fines Zango $3 Million

An anonymous reader writes "Wired is reporting that government regulators have fined rogue adware distributor Zango (formerly 180Solutions) $3 million. This is 'following charges that the company deceived internet users into installing its pop-up software and tried to prevent them from uninstalling it.' ZDNet mentions that 'Zango's executives pointed a finger elsewhere, claiming that the federal violations were due to third-party distributors rather than the software manufacturer itself.' Security researchers are still happily finding examples of Zango software being popped open in rogue distributions such as IM worms. Ben Edelman is claiming to have more evidence of their dubious business practices, casting into question their claims of newfound affiliate responsibility."

Comments

Consder the following...

[Nom du Keyboard]

Consider the following in assessing their guilt:

tried to prevent them from uninstalling it.

If they were innocent they would make an easy and safe removal tool as widely available as possible. And this tool should block any further attempts to reinstall the software as part of the removal process. Also...

'Zango's executives pointed a finger elsewhere, claiming that the federal violations were due to third-party distributors rather than the software manufacturer itself.

Oh, isn't that clever. Point the finger. Not our fault. Get a clue stick folks. Nobody works to sneak software onto a user's system that they're not getting paid for doing. If Zango were to actually stop paying for any further installs by anyone this problem would quickly go away. In addition, the software certainly has to contact Zango servers for updates and ads to display. Have your servers refuse to accept connections from any previous versions of your software, rendering it effectively toothless before you give me your poor me tales of woe.

Better yet, use your software to advertise the removal tool referenced above to all current users.

And Dear FCC, go after the advertisers who have used Zango to flog their wares. A few hundred thousand in fines here, and a few hundred thousand there, and the message will get out while you're reducing the government deficit in the process.

The plain truth is, there are some business models that DO NOT DESERVE to survive.

Re:Consder the following...

[MMC Monster]

The uninstaller should prevent another installation of the software? Just playing devil's advocate here, but that's a much higher standard you are setting them up against than just about any other software.

For one thing, what if this was Firefox. Should the uninstaller set up up so that if you uninstall Firefox once, it should never be installed on the computer again?

Then again, how should the uninstaller do that without leaving bits in the registry or a program directory? And wouldn't you want an uninstaller to clean out it's directory and leave the registry in a clean state?

TANSTAAFL

[Bellhead]

Speaking in general, without reference to any specific individual or corporation, I'll add these comments about the adware/spyware industry:

1. The reason adware companies do everything they can to make it difficult to remove their software is because they're in a hurry: they are making a lot of money very quickly, and they know that what they're doing will be illegal soon. When that happens, they want to be both rich and gone.
2. Many whom use P2P software shrug of adware as the cost of getting "free" songs or movies, but it's not just copyright infringement that's going on. These are not victimless crimes: the adware vendors are commiting commercial fraud!
   • The ads some companies create on users' computers are not intended for the user! They're intended to artificially inflate the hit counts of the server that they come from, so that the server's owners can charge their advertisers more.
   • When an infected machine visits a site like Amazon.com, the adware can popup an Amazon ad in a way that makes Amazon think the operator "clicked through" from an affiliate. The result? The adware company gets a cut of everything you buy!
3. They rely on children's innocence and gullibility to make their money:
   • Most adware I've removed was installed by teenagers and not adults, and I'd bet the adware companies count on that. Adults have a pretty good carp filter, after all: if somebody tries to sell me a pistol for two dollars, I've lived long enough to know that it's not a good bargain, but children will just click yes without thinking of consequences.
   • They're counting on the parents' indiference to perpepuate their scheme: too many adults will look the other way when their children install P2P software and start trading music, without thinking of the lessons they're giving their children in the process.
4. The cost of removing their product from your PC is what an MBA calls an externality: it's not their pocket that gets picked, it's yours.

Long story short: adware is peddled by vicious and unprincipled businesses, and it works because it takes advantage of the worst habits in both children and adults. Those who cash the checks aren't concerned about the mess that they leave for you and me to clean up!

It's time to put a stop to it, for the simple reason that Heinlein was right - There Ain't No Such Thing As A Free Lunch!

Bellhead

George W should...

[TavisJohn]

Why not just have George W just make a law/royal decree that all adware and spyware makers are terrorists! Then he could just imprision them without any due process, and take all their property. This problem of spyware and adware could be cleared up (From the US side anyway) quickly!