The US consumer watchdog is now seeking a permanent ban on the marketing practices of California-based Enternet Media, Inc. and Conspy & Co.
Also named in the complaint are Lida Hakimi, Nima Hakimi and Baback Hakimi, officers of the two firms, together with Ohio-based affiliate Nicholas C Albert, who does business as Iwebtunes and www.iwebtunes.com.
According to the FTC, the websites of the defendants and their affiliates cause “installation boxes” to pop up on consumers’ computer screens.
In one variation of the scheme, the installation boxes offer a variety of “freeware,” including music files, cell phone ring tones, photographs, wallpaper, and song lyrics. In another, the boxes warn that consumers’ internet browsers are defective, and claim to offer free browser upgrades or security patches. Consumers who download the supposed freeware or security upgrades do not receive what they are promised; instead, their computers are infected with spyware.
The agency’s complaint alleges that the software code tracks consumers’ internet habits; changes consumers’ preferred homepage settings; inserts new toolbars onto consumers’ browsers; inserts a large side “frame” or “window” onto consumers’ browser windows that in turn displays ads; and displays pop-up ads on consumers’ computer screens, even when consumers’ internet browsers are not activated.
In addition, the FTC alleges that once the spyware is loaded on consumers’ computers, it interferes with the functioning of the computer and is difficult for consumers to uninstall or remove.
These practices are unfair and deceptive and in breach of the Federal Trade Act, says the FTC.
The US District Court for the Central District of California granted a temporary injunction against the defendants on 2nd November. The FTC is now seeking a permanent injunction and redress for consumers.
Microsoft, Webroot Software and Google helped the FTC with its investigation.