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Zango Defies FTC Settlement Terms
David Utter
Staff Writer
2006-11-20
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The $3 million fine and other restrictions meted out by the Federal Trade Commission to Zango for their adware installation practices does not appear to have had the desired effect.
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Spyware researcher Ben Edelman documented eight current examples of Zango's practices that run counter to the terms of a settlement reached with the FTC.
"These are serious burdens and requirements that, were they zealously satisfied by Zango," Edelman wrote, "would do much to protect consumers from the numerous nonconsensual and misleading Zango installations we have observed."
Although Zango has publicly commented that they have been in compliance with the terms of the settlement since at least January 1st, 2006, Edelman's investigation proved otherwise. In listing eight offending examples, he questioned the effectiveness of the settlement and Zango's ability to meet its requirements.
Through screenshots and video captures, Edelman demonstrated on his site just how the practices that are counter to the terms of the agreed-upon settlement are being executed. In one example, a piece of software used on millions of PCs helps to facilitate one of these practices:
Zango's installation request appears in a Windows Media "license acquisition" screen -- a system Microsoft provides for bona fide license acquisition, not for the installation of spyware or adware. Zango's installer appears within Windows Media Player -- a context where few users will expect to be on the lookout for unwanted advertising software, particularly when users had merely sought to watch a video, not to install any software whatsoever.
Furthermore, the button to proceed with installation is misleadingly labeled "Play Now" -- not "I Accept," Install," or any other caption that might alert users to the consequences of pressing the button.
Other examples demonstrate various actions that violate the FTC agreement, including Zango's issues with presenting disclosures, unlabeled advertising, and the placement of material terms in non-prominent places.
"We commend the proposed settlement's core terms. But despite these strong provisions, bad practices continue at Zango -- practices that, in our judgment, put Zango in violation of the key terms and requirements of the FTC settlement," Edelman said.
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Tag: Zango
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About the Author:
David Utter is a business and technology writer for SecurityProNews and WebProNews.
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