Defendants Violated Prior FTC Order Barring Sales Misrepresentations

The Federal Trade Commission today announced that a U.S. district court judge in Nashville, Tennessee, has ruled Timothy Scott Jackson, Dora Helena Ortegon, and GIS, Inc. (GIS), guilty of civil contempt for violating a 2001 court order. According to the court, in misrepresenting the benefit to be gained from using government information packages sold through GIS from 2004 to 2005, Jackson violated the order, which had been sought by the FTC.

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Principals Barred from Misrepresenting the Terms of ISP Services They Provide;
Refunds of $3.6 Million Already Issued with More to Come

At the request of the Federal Trade Commission, the District Court for the Southern District of New York has permanently banned a group of Miami-based defendants from making misrepresentations when selling Internet Service Provider (ISP) services to consumers in the future – via telemarketing or any other means.

In 2003, the FTC charged the defendants with defrauding consumers they called to sell services such as Internet access and Web site design. The court order announced today also prohibits the defendants from billing consumers without first obtaining their consent – which they must record – and provides strict rules they must follow to ensure that consumers the defendants call are protected from fraud and deception. Finally, the order establishes a program through which defrauded consumers can obtain refunds from the defendants.

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Defendants involved with operations that secretly downloaded spyware that changed settings on consumers’ computers, have agreed to settle Federal Trade Commission charges that their practices violated federal law. The settlements bar secret software downloads in the future, bar the operators from exploiting security vulnerabilities to download software, and bar misrepresentations. In addition, the operators will give up a total of $50,000 in ill-gotten gains.

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Company Failed to Use Reasonable Security Measures to Protect Consumers’ Data

Guidance Software Inc. has agreed to settle Federal Trade Commission charges that its failure to take reasonable security measures to protect sensitive customer data contradicted security promises made on its Web site and violated federal law. According to the FTC, Guidance’s data-security failure allowed hackers to access sensitive credit card information for thousands of consumers. The settlement will require the company to implement a comprehensive information-security program and obtain audits by an independent third-party security professional every other year for 10 years.

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The U.S. Food and Drug Administration (FDA) is alerting the public to a voluntary recall being conducted by Perrigo Company (Perrigo) of Allegan, Michigan for 383 lots of acetaminophen 500mg caplets manufactured and distributed under various store-brands as a result of small metal fragments found in a small number of these caplets. Approximately 11 million bottles containing varying quantities of acetaminophen 500mg caplets are affected by this recall. For a list of batches affected, please see www.fda.gov/oc/po/firmrecalls/perrigo/perrigobatchlist.html. Consumers can determine if they are in possession of a recalled product by locating the batch number printed on the container label. A list of stores that carry store-brands potentially affected by this recall is located on FDA's website at www.fda.gov/oc/po/firmrecalls/perrigo/perrigocustlist.html.

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Trojan Program Downloaded Spyware, Adware, Porno Pop-Ups to Consumers’ Computers

A U.S. district court has shut down an operation that secretly downloaded multiple malevolent software programs, including spyware, onto millions of computers without consumers’ consent, degrading their computers’ performance, spying on them, and exposing them to a barrage of disruptive advertisements. The Federal Trade Commission has asked the court to order a permanent halt to these deceptive and unfair downloads, and to order the outfit to give up its ill-gotten gains.

The FTC charged ERG Ventures, LLC and one of its affiliates with tricking consumers into downloading malevolent software by hiding the Media Motor program within seemingly innocuous free software, including screensavers and video files. Once downloaded, the Media Motor program silently activates itself and downloads “malware” – software that is intrusive, disruptive, and makes it difficult for consumers to use their computers. Among other effects, the malware installed by the Media Motor program:

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Settlement Reminds Consumers Postal Jobs Are Not Found In Classified Ads

An operation that sold worthless prep materials for post office jobs that didn’t exist will give up almost all of their assets to settle Federal Trade Commission charges that the scam violated federal law.

The FTC charged that the operation misrepresented that they were connected with or endorsed by the Postal Service; that postal jobs were available; that customers would receive study materials that would help them pass the postal entrance exam; and that customers who pass that exam were assured jobs with the Postal Service. In reality, none of these claims are true.

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A company that sent unsolicited commercial e-mail after consumers asked it to stop has agreed to pay a $50,717 civil penalty to settle Federal Trade Commission charges that it violated federal law.

The FTC charged Yesmail Inc., doing business as @Once Corporation, with sending e-mail on behalf of its clients more than 10 business days after recipients had asked it to stop. According to the FTC’s complaint, Yesmail offers e-mail marketing services, including sending commercial e-mail and processing unsubscribe requests from recipients. The FTC’s complaint alleges that Yesmail’s spam filtering software filtered out certain “reply to” unsubscribe requests from recipients as “spam,” which resulted in Yesmail failing to honor unsubscribe requests by sending thousands of commercial e-mail messages to recipients more than 10 business days after their requests.

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Will Give Up $3 Million in Ill-Gotten Gains for Unfair and Deceptive Adware Downloads

Zango, Inc., formerly known as 180solutions, Inc., one of the world’s largest distributors of adware, and two principals have agreed to settle Federal Trade Commission charges that they used unfair and deceptive methods to download adware and obstruct consumers from removing it, in violation of federal law. The settlement bars future downloads of Zango’s adware without consumers’ consent, requires Zango to provide a way for consumers to remove the adware, and requires them to give up $3 million in ill-gotten gains.

"Consumers' computers belong to them, and they shouldn't have to accept any content they don’t want," said Lydia Parnes, Director of the FTC's Bureau of Consumer Protection. "If consumers choose to receive pop-up ads, so be it. But it violates federal law to secretly install software that forces consumers to get pop-ups that disrupt their computer use."

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Two companies and their principals have agreed to settle Federal Trade Commission charges that they violated the FTC’s Telemarketing Sales Rule (TSR) by calling telephone numbers listed on the National Do Not Call Registry and failing to pay the required fee for access to numbers listed on the Registry.

At the FTC’s request, the U. S. Department of Justice filed a complaint in federal court, alleging that on or after October 17, 2003, USA Home Loans Inc., a mortgage services company, and telemarketer USA First Investment Group Inc., violated the TSR while marketing mortgage products and services, including originating and refinancing home loans. According to the FTC’s complaint, USA Home Loans made calls to consumers, and, on its behalf, USA First Investment Group made calls to pre-qualify consumers for USA Home Loans offerings.

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