FTC: Spyware Distributors Deserve Jail Time

WASHINGTON - Federal Trade Commission Commissioner William Kovacic called for jail time for spyware distributors in a Senate Commerce Committee hearing held on Tuesday, April 10. Spyware distributors "can only be described as vicious organized criminals," Kovacic said. In suggesting prison time, the commissioner was responding to a query by Sen. Mark Pryor (D-Ark.) on a method the FTC can use to stop the unexpected loading of spyware on an unsuspecting user’s computer.

Pryer intoned, "It’s a real source of frustration from my constituents, my family, my office…basically anyone who has a computer." Previously, Congress tried to pass legislation to curb adware and spyware.

Kovacic sought a joint effort between criminal law enforcement and the FTC in order to bring down the parties responsible for the problem. "Many of the most serious wrongdoers we observed in this area, I believe, are only going to be deterred if their freedom is withdrawn," Kavacic said.

Another FTC commissioner, Jon Leibowitz, echoed, Kovacic’s sentiment. Leibowitz requested that Congress increase the commissioners’ fine-levying power. The request was not limited to spyware cases, but for other FTC problems, including "pretexting," the act of using false pretenses to obtain telephone records.

The April 10 hearing before the Senate was to inform lawmakers of the FTC’s recent activities. It also allowed commissioners to request a $17 million increase in the FTC’s $240 million budget. The five FTC commissioners appeared before the Senate’s 22-member committee (of which only four senators appeared). This was the first time since June 2005 in which all five commissioners appeared before the senate panel. At that time, the commissioners discussed identity theft.