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Friday, March 11, 2005 5:22 PM PT Posted by Andrew Brandt

FTC Takes Down Fraudulent Anti-Spyware Company

Chalk one up for the good guys. The FTC today announced that it's filed a restraining order against a company that allegedly offered Internet users a spyware scanner program that falsely reported that computers were infected with spyware, and which failed to remove any spyware at all from infected machines. (We detailed some similarly sketchy businesses in last fall's story, Poor Defenders.)

The commission issued a report Monday (made public today) that alleges the company, MaxTheater, Inc., engaged in fraudulent and deceptive business practices. Operating from the Web site SpywareAssassin.com, the Spokane, Washington-based MaxTheater offered visitors free scan of their PCs, and then sold them a $30 product called Spyware Assassin which, the commission says, didn't do a thing.

The report also names the owner of MaxTheater, Thomas Delanoy, as a defendant in the action, and details exactly what kinds of business practices got him into trouble.

"In an effort to induce consumers to purchase and download the defendants' "anti-spyware" software from their Web site, the defendants make numerous material deceptive representations in their marketing media," the FTC report says.

"First, after describing the various dangers of spyware surreptitiously installed on a computer, the defendants represent that they have "scanned" or otherwise examined the consumer's computer and have detected that spyware already resides on it. In numerous instances, the defendants make these spyware detection claims when the computer has no spyware residing on it."

"In numerous instances, the defendants' free remote scan is phony, and the defendants' representations that they have detected spyware on the consumer's computer are deceptive. At the time that the defendants display their initial spyware detection "pop up," the defendants do not know (and cannot know) whether the consumer's computer in fact already has "spyware" installed on it. At this point, the consumer's computer has not yet been scanned or otherwise examined for spyware," the report continues.

"In numerous instances the defendants display their spyware detection "pop up" even when, in fact, the computer is clean and does not have spyware installed on it," the report says.

The FTC is asking for a permanent ban on Spyware Assassin's claims and will ask the federal court hearing the case to order MaxTheater to refund money to its customers. The commission also had a restraining order issued, which requires MaxTheater to immediately stop engaging in the deceptive advertising and to preserve all records from the company, "due to the likelihood that advance notice of this action will cause the defendants to...abscond with or destroy evidence."

If all this leaves you scratching your head, wondering what tools you can trust, check out our story Spyware Stoppers.
Comments

People who knowingly deceive consumers like that should go to prison for a minimum of 5 years. Instead, they are given a slap on the wrist by having to pay a small fine compared to the large sums of money they made illegally. We need laws that actually serve as a deterent and not something to scoff at.

Anonymous
March 11, 2005
8:04 PM PT

NO ADAWARE put PORN on My Computer Deleted my WINDOWS COMM FILES and Destroyed my computer,and sent the info to Bank OF American which didnt do a thing, except say I got the program and it didnt work. I filed a Paper with the FTC about NO ADAWARE
A disabled veteran

Mark
March 12, 2005
2:15 AM PT

interesting and ironic that this article is on a page with over 9 adverts on it and uses doubleclick (known privacy breachers) for 4 of them, i guess its not only the spyware companies that are so desperate for cash that not even content or substance matters anymore

James Garner
March 12, 2005
1:52 PM PT

Im a computer tech and, honestly, this is nothing new. I get customers who tell me there is no way they had spyware or adware on their computer because they had . I have the wonderful task of telling them the truth. Sometimes they refuse to be convinced.

Cliff Armstrong
March 12, 2005
2:45 PM PT

One down, a zillion to go.

Only once people realize that the current climate of business predatory practices needs to be addressed and quit blaming the user will we see a return of trust in the internet.

Steve Doyle
March 12, 2005
9:06 PM PT

"If you're stupid enough..."

That's rediculous. Not everybody spends hours and hours on the internet and can recognise a scam so easily.

It's almost like saying a someone deserves to be beaten, raped and murdered when conned by someone they met on the internet... "because they were stupid enough to meet". Sorry for the horrible comparison.

Nobody deserves to be a victim.

Anonymous
March 12, 2005
10:12 PM PT

No he's right. If you click on any ad, anywhere - you deserve what you get. Internet ads are the scouge of the internet, and if AOLers hadn't clicked on them with a passion in the 90s, we wouldn't have them today.

Anonymous
March 13, 2005
3:57 AM PT

Damn those AOLers!!! lol...
they are the ones who should go to jail!!

Lores
March 13, 2005
4:30 AM PT

To those who believe that users get what is coming to them by clicking those ads, think again.

As one of the Anon. commenters stated, "Not everybody spends hours and hours on the internet and can recognise a scam so easily."

Let's face it, 80% of the people on the net are naive when it comes to computers and the internet, and it is those 80% that the people in the above article pray on. I'm sure you've seen the popups that look like legitimate Windows messages and sure you and I will notice that it is in an IE window and doesn't really match a windows message but comes close. However, Many, many people don't recognize the differences.

To say that they get what they deserve for not knowing as much about these things as we do is akin to the Linux zealots (and before anyone says anything, I run Mandrake 10) that say "If you don't like how something works, code it yourself."

Would it be nice if there was a book we could force everyone to read before they were allowed online? Perhaps, but try enforcing that one.

Joe McGuire
March 13, 2005
6:49 AM PT

I'd rather see a book that everyone was forced to read before they were allowed on a golf course!

sandman
March 13, 2005
12:15 PM PT

i love the FTC!

Anonymous
March 13, 2005
5:31 PM PT

Yes let's put fraudulent messages all over the place and trick people into clicking on them. Then let's run ads that say we can fix the problem for them.

It's all just business. Create a need and filling it. It's the customer's fault if he can't figure out what he really needs. It's the customer's fault if the current business model for an internet company is based on nothing and no way to pay for it.

All other honest businesses will have to compete with this. Someone has to pay the frieght and it will be the slow thinkers and the foolish clickers. Long live something for nothing!

(yes I am being ironic)

Steve Doyle
March 13, 2005
6:44 PM PT

Amatuers

Anonymous
March 13, 2005
7:27 PM PT

Do dont have to know everything about the internet, just do 1//2 hour of research, you might even think about picking up a magazine or two.

Paul
March 13, 2005
10:17 PM PT

"If you're stupid enough..."

That's rediculous. Not everybody spends hours and hours on the internet and can recognise a scam so easily.
.................................

would you invite me in your house
if i suddenly popped up on your doorstep with a big flashing sign saying that you have burglars and they may be spying on you as well as ruining your house ,give me money and i will check for you ..?

the " FTC Takes Down Fraudulent Anti-Spyware Company " headline is somewhat over dramatic
when all they have done is " filed a restraining order " these people are no fools , they change company , director names and move assets about all over the place and just carry on with a new company name and web site from a po box number ..the kazaagold scam( make a web site and sell people a free program) has been around for years and is still going strong

a fool and his money are easily parted and the internet is no exception


Anonymous
March 14, 2005
6:05 AM PT

I agree that most users are naive. I am a computer tech for an Engineering University, we have a working relationship to support the education for a National Laboratory. I interact with undergrad students, graduate students, facutly and staff in addition to consulting in my community. I have found that regardless of how much education a person has, there are members of these "peer" groups who fall for the popups or still click on .com, .bat, and .pif email attachments.

To say any victim diserves what they get is callous. It is wrong to prey on people. It angers me that people wish my trusting 80+ year old grandfather "gets what he diserves" because some pond scum decides to prey on his fears of spyware. The ignorant part of me wants to wish ill will on those callous individuals, but that would make me the same person as those I despise. To the callous ones, I hope something in your life may help you.

chris
March 14, 2005
8:42 AM PT

People trust people. This is a good thing in my opinion, as I'm far too cynical myself. It's something to treasure, not condemn. Thus, I'm all for coming down real hard on those who pray on others. Give them five years in jail, as suggested already. The day we're all as cynical and distrusting as myself it won't be possible to get any help from strangers should you ever need it.

Tor
March 14, 2005
9:09 AM PT

Yep trust the people and in partiucular large groups of people that hang out in forums. The geek community will help anyone and everyone for free. Take the advice of several people and make a decision based on that information. Works equally well for software and hardware. Low risk & saves time and money. You don't need to dedicate your life to learning about computers if that isn't your cup of tea!

jon
March 16, 2005
1:20 AM PT

Does anyone know how you join the lawsuit to get your money back?

Teresa
March 30, 2005
7:42 AM PT

i suppose it's just a coincidense that MaxTheater
were also selling a device to turn a normal crt TV into a big screen projector, a devise apparently so good as to be a danger to big screen TV makers like Sony.

Tom
May 21, 2005
9:14 AM PT
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