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

FSC: Arizona Governor Signs Controversial Age Verification Law

Free Speech Coalition has released a statement regarding Arizona Governor Katie Hobbs signing the state's age verification bill into law.

NCOSE Sues 4 Adult Websites Under Kansas Age Verification Law

The National Center on Sexual Exploitation (NCOSE), a conservative anti-pornography organization, has sued four adult websites in Kansas under the state's age verification law.

Sarina Havok, Robin Coffins Launch New Site Through Grooby's Blue.xxx

Sarina Havok and Robin Coffins have launched their new membership site, SarinaAndRobin.com, through Grooby's website management company Blue.xxx.

SpankChain Pauses SpankPay, SpankMatch

SpankChain has paused SpankPay, its adult crypto payment platform, and SpankMatch, its adult networking platform.

Sen. Mike Lee Tries Again to Criminalize All Porn With Interstate Obscenity Definition Act

Republican Senator Mike Lee of Utah has introduced the Interstate Obscenity Definition Act, which would redefine almost all visual depictions of sex as obscene and therefore illegal.

Ofcom Investigates 2 Adult Sites for AV Noncompliance

U.K. media regulator Ofcom is investigating two adult sites for failure to comply with age assurance requirements under the Online Safety Act, which Ofcom is charged with enforcing.

MojoHost to Launch New GPU Servers

MojoHost has announced plans to launch new GPU servers for its clients.

Maximilian Peldszus Joins Fanblast

Former BestFans CEO Maximilian Peldszus has joined creator software company Fanblast.

Kiiroo Joins Pineapple Support as Supporter-Level Sponsor

Kiiroo has joined the ranks of over 60 adult businesses and organizations committing funds and resources to Pineapple Support.

Sex Work CEO Debuts Upgraded 'GPTease' AI Assistant

Sex Work CEO has introduced the Power Tier upgrade to its AI-powered, NSFW text generator, GPTease.

Show More