InternetALERT Makers Settle False Claims Charge with FTC

InternetALERT promised to make your computer all but attack-proof but didn't exactly keep that promise, the Federal Trade Commission said this week in announcing a settlement between the makers of InternetALERT and the government agency.

The FTC accused Bonzi Software and principals Joe and Jay Bonzi of making excessive claims of InternetALERT's effectiveness. The pair had claimed the product reduced the risk of Internet attacks "significantly," and in ballyhoo language that exaggerated its actual effectiveness greatly when the product really offered "only limited protections for computers and the information stored in them," the agency said.

"[T]he software does not significantly reduce the risk of unauthorized access into computers and information stored in them and provides only limited protection for computers against intrusions by hackers, viruses, worms, spyware, and other Internet threats," the FTC said in announcing the settlement, which includes an order against the Bonzis barring them from making false claims about security and privacy features for InternetALERT and any other products they make.

"In addition… the software lacks security features that provide virus protection to computers and prevent personal information stored on them from being sent to unauthorized parties," the FTC said.

The Bonzi scheme involved selling InternetALERT for $49 per year on subscription, and advertising it by way of banner, button, and popup ads online and on the company Website, ads which ballyhooed that without the product hackers could "Steal your Credit Card & Personal Information; Read Your E-Mail; Plant a Virus or Worm; or Steal Online Banking Information!" Those ads directed surfers and would-be buyers to a download link.

The Bonzis were also ordered to tell current InternetALERT subscribers of the FTC complaint and settlement and let them cancel the service for pro-rated refunds, and to send copies of the settlement order to third parties who advertise InternetALERT.