Last week, Zango, the controversial online media company and adware developer formerly known as 180solutions, reached an agreement with the Federal Trade Commission to resolve an investigation into alleged unfair trade practices. The Center for Democracy and Technology filed a complaint with the FTC in January accusing Zango of misleading users into installing intrusive ad serving software onto their systems.In the settlement, Zango agreed to hand over $3 million in fines while maintaining its innocence, saying that its software delivery system no longer relies on unscrupulous affiliates who modify and distribute Zango software against its policies.
In a press statement, though, Zango CEO Keith Smith stated: “Early in our business, and as we’ve acknowledged, we relied too heavily on our affiliates to enforce our consumer notice and consent policies… We deeply regret and apologize for the resulting negative impact. The FTC’s leadership in providing clarity around best practices is a welcome and significant step forward for Zango and our industry. We embrace the new standards and will continue to create, abide by and strive for best practices that protect consumers.”
As part of the settlement, Zango must adhere to FTC regulations that bar it from loading programs onto customers’ computers and monitoring them without their consent. The programs also must include a feature that allows customers to uninstall the software easily. The settlement bars Zango from contacting the computers of people who installed Zango software before Jan. 1, 2006.
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