FTC says adware maker Zango has not clearly labeling its software and informed consumers what it does on their PCs, in violation of last year's settlement. Zango Inc. was ordered by the FTC last November to give up US$3 million after it found the company's software was difficult to remove and deceived consumers as to its function.
As part of a settlement, the company was ordered to ensure that users saw a second warning screen informing them of what they were downloading. The FTC found that people rarely read the entire End User License Agreement (EULA).
Zango's software displays targeted pop-up ads to Web surfers based on the sites they search for. In exchange for viewing the ads, users gain access to freebies such as video clips and the ubiquitous graphical "smileys" for e-mail. Web sites operators that offer downloads of Zango's software are paid every time a visitor downloads it. This offer prompted hackers at one point to figure out ways to get the software installed on computers through security exploits.
Source: PCWorld
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