FTC Cracks Down on Alleged Spyware Site

WASHINGTON, D.C.-- A U.S. district court today ordered a Web business offering free music files, browser upgrades, and ring tones to halt downloads of alleged spyware and adware, at the request of the U.S. Federal Trade Commission.

The U.S. District Court for the Central District of California, in Los Angeles, also froze the assets of an organization doing business as Enternet Media, Searchmiracle.com, C4tdownload.com, and Cash4toolbar.com, according to the FTC. In addition, the court halted downloads from an affiliate site, Iwebtunes.com, that allegedly spread spyware by offering free background music to Weblog operators.

The FTC's November 1 complaint alleges that the Web sites of the defendants and their affiliates caused installation boxes to pop up on users' computer screens. In some cases, the installation boxes offered a variety of freeware, including music files, mobile phone ring tones, photographs, and song lyrics. In another variation, the pop-up box warned users that their Internet browsers were defective and offered free upgrades or security patches, according to the FTC.

Instead of receiving the free files or patches, users' computers were infected with spyware, says the FTC.

Allegedly Took Control of User's PC

The FTC complaint alleges that the defendants' software code could track PC owners' Internet use, change their home page settings, insert new toolbars into their browsers, insert a large frame displaying advertisements into browsers, and display pop-up ads. The software installed interfered with computer functions and could be difficult to remove, the FTC says. (A PDF of the complaint is available.)

The FTC is seeking a permanent injunction against the downloads. The agency is also asking the court to order the defendants to give up their "ill-gotten gains." Microsoft, Webroot Software, and Google assisted the FTC in its investigation, the agency says.

Defendants named in the FTC complaint are Enternet Media, Conspy & Co., Lida Rohbani, Nima Hakimi, and Baback Hakimi, doing business as Networld One, all based in California. The affiliate, also charged in the complaint, is Nicholas C. Albert, doing business as Iwebtunes, based in Ohio.

The FTC asks anyone who has experience with any of these defendants to contact the agency at enternetmedia@ftc.gov or to call 202/326-2992.