Bogus Spyware Operators Settle with FTC

WASHINGTON – Looking down the barrel of a $2 million forfeiture in ill-gotten gains, two anti-spyware operators have agreed to settle charges with the Federal Trade Commission that their services were bogus and violated federal law.

According to an FTC report, Spyware Assassin, its affiliates, and Trustsoft both promoted spyware detection products that either did not work or did not work as advertised. Both companies would conduct “scans” claiming to detect illegal spyware on a user’s computer, which was then remedied by selling the customer anti-spyware software for $29.95.

Spyware Assassin was first accused of fraudulent business practices in March 2005. The FTC charged at the time that the company and its affiliates used websites, email, banner ads and popups to drive consumers to the Spyware Assassin website where the bogus scans would take place.

According to the FTC, one set of Spyware Assassin defendants will be barred from selling or marketing any anti-spyware products or services in the future.

In June 2005, the FTC charged Trustsoft with using similar tactics to sell its SpyKiller software. The FTC alleged the defendants sent popup and email messages informing consumers that their computers had been remotely scanned and that spyware had been detected, even though defendants had not performed any such scans.

The FTC’s complaint alleged that the anti-spyware software that both companies sold did not remove all or substantially all spyware, and the defendants’ deceptive claims violate the FTC Act, which bars deceptive claims.

Spyware Assassin owner Thomas L. Delanoy and his corporation, MaxTheater Inc., will pay $76,000 -- the full amount of consumer injury. The settlement will ban the defendants from selling or marketing any anti-spyware products in the future.

Trustsoft owner Danilo Ladendoft will pay approximately $1.9 million to settle the FTC charges. The settlement will prohibit them from making deceptive claims in the sale, marketing, advertising, or promotion of any goods or services and prohibits the specific misrepresentations used in promoting SpyKiller.

U.S. District Courts ordered a halt to the deceptive practices of both operations, pending trials. The settlements announced today end those lawsuits.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

2025 XBIZ Miami Speaker Lineup Announced

XBIZ is pleased to announce the release of the full speaker lineup for XBIZ Miami, the latest edition of the adult industry’s premier creator conference, set to take place May 19-22 at the Nautilus Sonesta Miami Beach hotel in South Beach.

AV Bulletin: Arizona's About-Face, What New Laws Mean for Adult

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the United States. In the meantime, state legislatures continue to weigh and pass AV bills, the U.K. and the EU are moving ahead with their own AV mandates and strategies, and legal challenges continue to play out in U.S. courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Million Billion Media Launches New Website

Management and PR agency Million Billion Media (MBM) has launched a new website.

'Neon Nightswim' Party Returns to XBIZ Miami

XBIZ is pleased to announce that the annual Neon Nightswim Pool Party will once again illuminate XBIZ Miami on Tuesday, May 20.

FSC Addresses UK Age Verification Guidelines

The Free Speech Coalition (FSC) has published an article offering guidance on the U.K.'s Online Safety Act and the various guidelines put forward by the country's telecommunications regulator Ofcom.The article follows:

European Commission Posts AV Guidelines, Seeks Feedback

The European Commission has made public its draft guidelines on protecting minors online under the Digital Services Act, including age verification requirements covering adult sites and platforms.

'White-Hot' Party Set to Kick Off XBIZ Miami

XBIZ is pleased to announce that the annual White-Hot Party, the official opening bash of XBIZ Miami, is set for Monday, May 19, at Mynt Lounge in South Beach.

AEBN Publishes Popular Searches for March, April

AEBN has announced the top search terms for March and April from its straight and gay theaters in all 50 states and the District of Columbia.

Takedown Piracy Adds 'Search Max' Feature

Takedown Piracy has launched Search Max, a search engine for detecting, verifying, and removing Google infringements.

Sex Workers' Group Fights Proposed Swedish Ban on 'Remote' Sexual Services

The European Sex Workers’ Rights Alliance (ESWA) has launched a campaign against a Swedish government proposal to expand current laws against purchasing sexual services to apply to acts performed remotely by cammers, streamers and custom content creators.

Show More