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

SWR Data Publishes 2026 'Hot List' Report

Adult industry market research outfit SWR Data has published its 2026 Hot List report on the top creator platforms of 2025.

Adult Chat Platform Arousr Sets Human-Only Host Policy

Adult chat platform Arousr has announced a policy to only use verified human hosts, not chatbots.

Arizona State Legislator Proposes Porn Ban

A member of Arizona’s House of Representatives on Wednesday introduced a bill that would make it illegal to produce or distribute adult content in that state.

SinfulXAI to Launch New AI Generator

AI companion platform SinfulXAI has announced its new AI video generator, launching in February.

SCOTUS Won't Hear Appeal in NYC Adult Businesses Zoning Case

The U.S. Supreme Court has declined to hear an appeal by a group of adult businesses of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

AEBN Publishes Popular Searches for November, December

AEBN has published the top search terms for November and December from its straight and gay theaters in all 50 states and the District of Columbia.

X3 Expo Day 2 Delivers Stars, Screenings and Fan Favorites

The sun once again shone brightly on the historic Hollywood Palladium as throngs of avid fans made their way through the doors, ready to experience Day 2 of the 2026 X3 Expo.

X3 Expo Kicks Into Gear With an All-Star Lineup

Outside the historic Hollywood Palladium on Friday, a huge crowd of fans lined Sunset Boulevard, eagerly awaiting the opening of the 2026 X3 Expo and their big chance to meet the cream of the crop of adult stars.

2026 XBIZ Honors Salutes Resilience Across the Online Adult Industry

The 2026 XBIZ Honors packed house Wednesday night, turning the Kimpton Everly Hotel’s Nichols Ballroom into a gala celebration of industry excellence.

Elevated X Integrates CCBill for Payment Processing

Elevated X has added CCBill payment processing integration to its ELXNexus traffic management and affiliate software.

Show More