The US consumer watchdog is now seeking a permanent ban on the marketing practices of MaxTheater Inc. from the US District Court for the Eastern District of Washington.
According to the FTC, MaxTheater and its principal Thomas L Delanoy use web sites, e-mail, banner ads and pop-ups to drive consumers to their Spyware Assassin web site. The site then offers to scan consumers' computers at no cost to determine whether they're infected with spyware.
One so-called scan – the remote scan – is performed free when consumers land on the web site. This displays a pop-up message that states, "URGENT ERROR ALERT: You have dangerous spyware virus infections on your computer. Click OK to install the latest free update to fix these errors. Immediate action is highly recommended before you continue!"
The other "scan"– the "local scan" – is performed when consumers click to download the software, at a cost of $29.95. Both scans warn consumers that they have spyware installed on their system.
The FTC charges that, "the defendants' free remote scan is phoney, and the defendants' representations that they have detected spyware on the consumer's computer are deceptive."
According to the agency, the pop-up that announces that consumers have spyware pops up automatically, even when the computer is clean and does not have spyware installed on it.
During the "local" scan consumers are warned that their computer is infected with spyware and a message flashes on the screen listing the names and file locations of the spyware on the system. Even when the computer is clean of all spyware, says the FTC, the report says that spyware has been detected, and the file folders the defendants claim contain the spyware are either empty or contain files that do not contain spyware.
In addition, says the FTC, the "anti-spyware" software does not remove all or substantially all spyware, contrary to the claims of the defendants, and in breach of the Federal Trade Commission Act, which bars deceptive claims.
The agency is now seeking a permanent ban on the deceptive claims and compensation for consumers affected by the scam.