The Federal Trade Commission has filed its first known case against spyware, accusing a New Hampshire businessman of running one company that slips surreptitious spyware onto user computers and another company trying to sell a $30 fix-it for the spyware.
The FTC has asked a federal court in New Hampshire to issue temporary restraining orders against Seismic Entertainment and SmartBot and the companies' mastermind, Sanford Wallace.
Seismic is accused of installing pop-up ad-inducing spyware on user computers without their knowing or approving, and sending them scare messages pushing them to buy SmartBot's Spy Wiper and/or Spy Deleter programs for $30. They're also accused of changing consumers' Web browsers through the spyware programs, according to the FTC complaint.
The FTC wants the restraining order to stop the companies and Wallace from publishing and distributing software code, script, or any content through the Internet and elsewhere, require them to remove all the spyware including the scripts in those programs that alter Web browsers or exploit their vulnerabilities, and produce all documentation tied to their Internet marketing programs. The commission said they will also seek restitution to consumers where applicable.
The FTC filed the complaint October 7, the same day the U.S. House passed a bill to criminalize installing spyware to change computer settings or steal personal information with prison terms two to five years. A similar bill imposing civil penalties passed earlier in the week, and House leaders have said the two bills are likely to be remade into a single proposal by year's end.
