Want to stay current on e–commerce law? Sign up for Email Newsletter.
Marketing Firm Settles "Scareware" Lawsuit
Secure Computer, a New York-based sales and marketing firm, has settled a lawsuit filed by Washington State’s Attorney General. The lawsuit alleged that Secure Computer used links on Google, pop-up ads, spam email, and a Microsoft Windows feature to falsely warn people that their computers were infected with spyware, software capable of logging keystrokes and recording web-users’ activities, among other things. Computer users were then offered Spyware Cleaner, a software program that claimed to remove the spyware. As a result, the lawsuit claimed that Secure Computer violated Washington’s 2005 Computer Spyware Act, federal and state spam laws, and the state Consumer Protection Act. In settling the lawsuit, Secure Computer agreed to pay $200,000 in civil penalties, $75,000 in restitution to consumers, and $725,000 in legal fees and costs. Secure Computer must also email the estimated 1,145 Washington residents who purchased Spyware Cleaner, offering a refund. The company, however, is not required to admit any wrongdoing. This was the first lawsuit under the 2005 Computer Spyware Act.
For additional information, visit:
http://news.com.com/2100-7350_3-6140656.html