FTC Fines Pop-Up Company

WASHINGTON, D.C. – The Federal Trade Commission (FTC) sent a cautionary tale to the Internet advertising community this week when it flagged a San Diego company, claiming it took advantage of a glitch in Microsoft's Windows operating system to harass computer users with a six-month long blizzard of pop-up ads.

In some cases the ads were sent to certain computer users in ten-minute intervals.

According to the FTC, part of the campaign in question tried to cajole consumers into purchasing an anti-pop-up software program. But the text in the pop-up stated that if they didn't purchase the software program, the pesky ad campaign would only continue, if not worsen. The software in question sold from one of the company's numerous websites for between $25 and $30.

"This is nothing more than a high-tech version of a classic scam," said Howard Beales, director of the FTC's Bureau of Consumer Protection. "The defendants created the problem that they proposed to solve – for a fee. Their pop-up spam wasted computer users' time and caused them needless frustration."

The company in question, D Squared Solutions, LLC, launched its intensive pop-up campaign in May of this year based on a weakness in the Windows Messenger Service, according to the FTC. Windows Messenger Service is a network administrator communication system.

At any given time, D Squared Solutions was able to send an hourly onslaught of pop-up ads to 135,000 Internet addresses based on a database of 2 billion unique addresses, the FTC reported.

The FTC alleges that D Squared was using extortion-like tactics in its aggressive attempt to get people to buy its software. A temporary restraining order was issued against the company and legal action could include financial penalties.

The company's owners, Anish Dhingra and Jeffrey Davis, were told to discontinue their use of the Windows Messenger Service to send ads.

According to a statement issued by the FTC, D Squared has been charged with one count for extortion and one count for improperly using Windows Messenger Service to deliver unsolicited advertisements.

As a warning to the advertising community, the FTC said that it would not hesitate to fine companies in the future that use unsolicited messages to interfere with computer users. However, the FTC recognizes that pop-up advertising is a viable and legitimate form of Internet advertising.

Copyright © 2026 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

AV Bulletin: Midyear Roundup

Since the U.S. Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. Meanwhile, lawsuits resulting from AV laws have begun to play out in the courts. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Judge Dismisses Last NCOSE-Backed Suit Over Kansas AV Law

A federal judge on Monday dismissed a lawsuit alleging that adult site SuperPorn violated Kansas’ age verification law, citing lack of jurisdiction after similarly dismissing two related cases earlier this year.

ASACP Updates 'Restricted to Adults' Labeling Resource Page

The Association of Sites Advocating Child Protection (ASACP) has updated its Restricted to Adults (RTA) labeling resource page.

Federal AV Proposal Scores Minor Win in House but Remains in Doubt

A newly announced bipartisan agreement in the U.S. House of Representatives Committee on Energy and Commerce may soon bring a proposed federal age verification law before the full House, but the measure continues to face an uphill battle.

Arizona Governor Vetoes 'Protect Act' With New Consent Provisions

Arizona Governor Kate Hobbs on Friday vetoed HB 2133, the “Protect Act,” which would have imposed new requirements for adult content uploaded online.

Brazil Begins Monitoring 18 Adult Sites for AV Compliance

Brazil’s National Data Protection Authority (ANPD) is now monitoring 18 high-traffic adult websites for compliance with the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires such sites to age-verify users located in Brazil.

Ofcom Fines First Time Videos $100,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 80,000 pounds (more than $100,000) against First Time Videos, which operates FTVGirls.com and FTVMilfs.com, for failing to implement age checks required for compliance with the Online Safety Act.

Curves Ahead: How BBW Creators are Turning Differentiation Into Competitive Advantage

For centuries, curves have been celebrated as a symbol of beauty, sensuality and power. From the soft opulence of Rubens paintings to the glamorous silhouettes of pinup icons, fuller figures have long occupied a place in art, fashion and fantasy.

Woodhull Freedom Foundation to Host Virtual 'Pride' Edition of 'Fact Checked' Series

Woodhull Freedom Foundation is hosting a Pride Month virtual edition of its series “Fact Checked by Woodhull.”

'InMelanin' Relaunches Through PAYSITE

InMelanin.com has officially relaunched through PAYSITE.

Show More