Adware maker Zango continues to violate the terms of a settlement with the
Federal Trade Commission (FTC), spyware
researchers Ben Edelman alleges.
Zango last October agreed to pay a
$3m fine for the "unfair and deceptive" distribution of its adware. Under
the terms of the agreement, the software distributor was required to clearly
identify itself upon installation and obtain user's consent.
Edelman, an assistant professor at Harvard Business School and noted spyware
researcher, however found examples of the software being installed without any
disclosures to the end user or without clear disclosures.
Zango
claims that
Edelman is "dead wrong", stating that he used outdated copies of the Zango
software that will no longer function. The company also accuses the researcher
of manipulating his research by running his tests on an "archaic computer with
low or outdated screen resolution", preventing the disclaimers from being
properly displayed.
Zango markets an application that provides access to movies, games and
photos. The firm makes money by serving pop-up ads that are based on the user's
past surfing habits.
The company also pays third party distributors to push its software, thereby
creating an incentive for botnet herders and unscrupulous website operators to
cheat end users into installing the software without proper disclosures.
Last year's FTC settlement was intended to end the practice of unsolicited
installations. Edelman's findings however indicate that these unfair
installations continue.
"These practices call into question the integrity of Zango's business, as
well as the status of Zango's compliance with its obligations under its recent
settlement with the FTC," Edelman
concluded on his
blog.
He called on the FTC to enforce the terms of the settlement, adding that he
looked forward to the commission's response.
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