FTC Goes After Online Chutzpah

by on October 13, 2004

The FTC opened a new front in the war against spyware yesterday, filing charges against Sanford Wallace, claiming he has distributed software surreptiously installs itself on PCs, changed user’s home pages, install advertising programs, and even cause CD trays to fly open. Then, in what the FTC calls the very definition of “online chutzpah“–the programs would trigger ads offering to sell the victim anti-spyware programs at $30 a pop.

Reportedly, the fine could be 10,000 per violation. Given the vast number of computers thus infected, that could tote up pretty fast. Good. I hope its in the trillions. This is exactly the sort of case that the government should be bringing–against Internet vermin that are violating the rights of web surfers.

Notably, the case was brought under the FTC’s current authority to stop “unfair or deceptive” practices,” without any no new legislation from Congress. Supporters of legislation nevertheless argue that future cases may be harder to make under existing laws. Perhaps true, but we should try them before rushing in with new rules. That’s exactly what the FTC is doing, to Mr. Wallace’s chagrin, and to the delight of the rest of us.

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