Antispyware Company Settles for $1M
You know you’re living in a scary world when you have to watch out for spyware and antispyware companies, and that seems to be precisely the world we live in.
Secure Computer, which is based in White Plains, N.Y., settled with the state of Washington on Monday for $1 million. The settlement was the state’s first spyware suit.
The company was accused of violating Washington’s 2005 Computer Spyware Act, federal and state spam regulations, and the state’s Consumer Protection Act.
The settlement will affect an estimated 1,145 state residents who were fooled into purchasing a program called Spyware Cleaner for $49.95. The lawsuit was filed in January, and claims that Secure Computer used deceptive spam messages, pop-up ads, and links on Google to trick consumers into purchasing the program.
Senior Counsel Paula Selis said that the state’s investigation of the matter found that Secure Computer’s “free” computer scans always detected spyware regardless of how clean the computer was. “In order to remove this falsely detected spyware, users were instructed to pay $49.95 for the full version of Spyware Cleaner,” she said.
The suit also alleges that the company made use of a Windows features to cause a window to appear warning the user that their computer had been affected by spyware.
As a result of the settlement, all affected users residing in Washington are eligible for a refund on their purchases of the Spyware Cleaner program and another program called Popup Padlock. The company is required to e-mail all previous Washington customers who actually purchased either of these programs to inform them about their qualification for a refund.
Secure Computer and its president, Paul E. Burke, will pay $200,000 in civil penalties, $75,000 in restitution for consumers, and $725,000 in state attorneys’ fees and costs. The agreement included no finding or admission of misconduct.
“It sends a strong message to Internet businesses that they must promote their products ethically and legally,” said Washington Attorney General Rob McKenna. “We won’t tolerate deceptive marketing such as scareware that preys on consumers’ fears about spyware and online threats.”
Secure Computer’s troubles may not be over yet. A lawsuit filed by none other than Microsoft is also pending. Microsoft filed the suit in response to ads that Secure Computer used, which made it appear that their programs were supported by the software and Web giant.
Secure Computer stopped selling Spyware Cleaner in January, when Washington filed the lawsuit, and has since reached settlements with three other defendants.
Sources:
http://www.consumeraffairs.com/news04/2006/12/
wa_secure_computer.html
http://seattlepi.nwsource.com/local/6420AP_WA_
Spyware_Settlement.html
http://news.com.com/Company+accused+of+selling+
fake+antispyware+settles+suit/2100-7350_3-6140656.
html?tag=nefd.top
