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Zango Still Misbehaving, Says Researcher



David Utter
Staff Writer
2007-07-31

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Spyware researcher Ben Edelman has been following Zango's software installation practices before and since their November 2006 settlement with the FTC, and found the company still doing some questionable practices.

Zango Still Misbehaving, Says Researcher
Zango Still Misbehaving, Says Researcher

Zango's scourge has come through with more hands-on findings regarding the firm's business. Ben Edelman listed his hands-on testing of Zango, and the issues he encountered.

"Among these practices are widespread, ongoing Zango-designed installation sequences which install Zango pop-up ad software without any on-screen disclosure of material terms," said Edelman.

"Instead, these installations mention Zango's effects only in a lengthy EULA - exactly contrary to the FTC settlement's requirements."

Edelman broke down the incidents he observed into five practices, which he believes places Zango's compliance with the Federal Trade Commission's settlement into question:

•  Widespread Zango "ActiveX" Installations without Unavoidable, Prominent Disclosure of Material Terms (XP SP1 and Earlier).
•  Widespread Zango Banner-Based Installations without Unavoidable, Prominent Disclosure of Material Terms (XP SP2).
•  Ongoing Zango Installations with No Disclosure Whatsoever.
•  Unlabeled Zango Ads - Toolbars, Desktop Icons, and Pop-Ups.
•  Zango Ads for Bogus Sites that Attempt to Defraud Users.

Zango's lengthy licensing terms, 4,070 words in 45 pages within a small EULA box in one example, doesn't mesh with the FTC's settlement terms, according to Edelman.

"To the extent that Zango provides any disclosure of ad formats or privacy effects, such disclosure appear only in an End User License Agreement. Disclosure in Zango's lengthy license is exactly contrary to the settlement's requirements that such disclosures appear 'prior to the display of, and separate from, any [EULA].'"

Edelman closed with his hopes of a "tough and effective response" from the FTC. "Whatever my prior concerns, these widespread violations by Zango offer the FTC a clear opportunity to demonstrate the importance of full compliance with settlement terms," he said.

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About the Author:
David Utter is a business and technology writer for SecurityProNews and WebProNews.

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