FTC Fines Zango $3 Million
The latest victim of the FTC's Spyware crackdown is the well known Zango software. Zango, formally known as 180solutions, has been charged with installing advertising software along with its free games without proper notification to users and will be fined to the tune of $3 million. We're sure most of you recognize the name as it's estimated that the software was installed on over 7 million machines, causing around 6.9 billion pop-up ads.
"The FTC also prohibited the company from installing software without a consumer's express consent, which it defined as "clear and prominent disclosure" of the terms of the software installation, separate from any end-user license agreement and prior to "consumer activation of the download."
Both Schwartz and Steve Stratz, Zango's spokesman, said the FTC's definition sets a precedent for all companies that offer content for download, from instant-messaging software to toolbars to games."