Federal Trade Commission

September 20006, Federal Trade Commission — FTC shuts down spyware operation. An operation that placed spyware on consumers’ computers in violation of federal laws will give up more than $2 million to settle Federal Trade Commission (FTC) charges. The FTC said Wednesday, September 6, that it has obtained a settlement order against Enternet Media Inc., Conspy & Co. Inc., Lida Rohbani, Nima Hakimi, and Baback Hakimi, all based in California.

The defendents distributed software called Search Miracle, Miracle Search, EM Toolbar, EliteBar, and Elite Toolbar. According to the FTC’s complaint, the Websites of the defendants and their affiliates caused “installation boxes” to pop up on consumers’ computer screens. In one variation of the scheme, the boxes offered a variety of “freeware,” including music files, cell phone ring tones, photographs, wallpaper, and song lyrics. In another, the boxes warned that consumers’ Internet browsers were defective, and offered free browser upgrades or security patches. Consumers who downloaded the supposed freeware or security upgrades did not receive what they were promised; instead, their computers were infected with spyware that interferes with the functioning of the computer and is difficult for consumers to uninstall or remove.
Source: http://www.ftc.gov/opa/2006/09/enternet.htm