Spyware’s Zango Gets Smackdown
I followed a blog post by Linda Buquet about a smackdown on spyware and affiliates, and the comapanies that promote it. It’s a good wake-up call to those affiliates making a buck this way.
Looks like Zango got the smackdown, to the tune of a $3 million fine:
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Under the $3 million FTC settlement, Zango was required to cease communications with Internet users who downloaded the Zango/180solutions software before Jan. 1, 2006. Not only does this provide relief for many unwitting Zango “users,” it also sends a message that companies will not be permitted to retain customer bases built on patterns of unfair practices.
Nice. Zango will also have to obtain constent from now on from the end-user before installing their software … and, it has to be really obvious to the user and not hidden away on some deep web page.
Now, expect Zango to pass the smackdown on to those affys who helped caused this issue in the first place:
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Second, the settlement makes clear that Zango is responsible for the actions of affiliates on its behalf. Too many downloadable software companies, Zango included, have attempted to disavow bad practices undertaken by their affiliates on their behalf. This settlement establishes that these companies can no longer sit back and claim ignorance as their affiliates violate the trust of Internet users.
“This settlement has the potential to be a landmark, both for the downloadable-software community and for the Internet as a whole. By clearly identifying the sorts of behaviors that are unacceptable for software distributors, the FTC has made it harder for bad actors to hide behind murky affiliate relationships and deliberately confusing disclosures,” said CDT Policy Analyst Alissa Cooper who co-wrote the comments. “The only thing that could undermine the value of this settlement would be if Zango is permitted to openly flout its terms. The FTC must make clear that it expects Zango to follow the legally binding settlement to the letter, or face serious consequences. If the FTC cannot enforce its settlement in this case, the Commission’s authority to prevent fraud on the Internet will come under heavy scrutiny.”
The times, they are a-changing!
