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

UPDATED: European Commission Unveils AV App, Addresses Hacks

The European Commission’s age verification app is now technically ready and will soon be available for EU citizens to use in order to prove their age when accessing online platforms, European Commission President Ursula von der Leyen announced Tuesday.

Syren De Mer, Eddie Patrick Cap AEBN's Top Stars for 1st Quarter of 2026

AEBN has revealed its most popular performers in straight and gay theaters for the first quarter of 2026.

Tennessee Bill Would Require Warnings on Adult Stores

The Tennessee Senate has passed a bill requiring adult stores, theaters and other establishments in the state to post warning signs cautioning patrons that they “may be contributing” to sexual assault and human trafficking.

Report: Irish Regulator Seeks 'Industry Input' on AV Compliance

Irish media regulator Coimisiún na Meán (CnaM) will draw on “industry input” to help establish a framework for assessing platforms’ compliance with Ireland’s Online Safety Code and the EU’s Digital Services Act, news organization MLex reports.

'iDealgasmPlus' Launches Through PAYSITE

iDealgasmPlus.com has officially launched through PAYSITE.

Canadian Senate Approves National Age Verification Bill

Canada’s Senate on Wednesday passed bill S-209, the “Protecting Young Persons from Exposure to Pornography Act,” which would require commercial adult websites to verify that Canadian users are at least 18 years old.

Sara Jay Relaunches Site Through PAYSITE

Sara Jay has relaunched her membership site, WydeSyde, through PAYSITE.

UK House of Commons Moves to Tone Down Porn Amendments

The House of Commons has modified amendments to the U.K.’s pending Crime and Policing Bill, including provisions regulating “step” content, content featuring adults role-playing as minors, and performers’ ability to withdraw consent.

AEBN Reveals Ariel Demure as Top Trans Star for Q1 of 2026

AEBN has named its top trans stars for the first quarter of 2026, with Ariel Demure landing atop the leaderboard.

Final IRS 'No Tax on Tips' Rule Excludes Pornography

The Internal Revenue Service on Monday published final regulations on the “No Tax on Tips” provision included in the “One Big Beautiful Bill Act,” offering new tax deductions for tip workers but excluding revenue received for “pornographic activity.”

Show More