Secure Computer sent computer users messages falsely claiming
that their machines were infected with viruses, said the
state Attorney General's office. It then sold them software
which it claimed fixed the problems. That violated the Computer
Spyware Act, it said.
"Internet businesses are responsible for ensuring that
third-party advertisers and affiliate marketers, as well as their
own staff, do not boost sales through misleading pop-up ads, phoney
results of so-called ‘free scans,’ bogus hyperlinks or other online
trickery,” said Attorney General Rob McKenna.
"This sends a strong message to Internet businesses that they
must promote their products ethically and legally. We won’t
tolerate deceptive marketing such as ‘scareware’ that preys on
consumers’ fears about spyware and online threats," he said.
The company will pay $75,000 in restitution to customers,
$200,000 in civil penalties and $725,000 in legal fees according to
a consent decree signed by Seattle judge Ricardo Martinez. The
company must email all customers telling them of their rights to a
rebate, the decree said.
Websites run by the company offered to perform a free
'computer scan' on users' machines to look for spyware.
"Our investigation found that this so-called free scan always
detected spyware, even on a clean computer,” said Paula Selis, a
lawyer at the Washington Attorney General's office. “In order to
remove this falsely detected spyware, users were instructed to pay
$49.95 for the full version of Spyware Cleaner. Washington’s
spyware law makes it illegal to induce a computer user to download
software by falsely claiming the software is necessary for security
purposes.”
The Attorney General's office claimed that the software sold
by Secure Computer did not only not perform the tasks that it
claimed, but that it actually damaged computers on which it was
installed. The Attorney General said that the software deleted a
computer's hosts files, which tell the computer which websites to
block. This action made the computer even more vulnerable to
attack, said the Attorney General.
