Two Students Challenge The FTC

WASHINGTON, D.C. – Two college students are creating a major cramp in the Federal Government’s side over the legalities of commonly used pop-up advertising.

The Federal Trade Commission (FTC) is being challenged by two University of San Diego college students, Anish Dhingra and Jeffrey Davis, who were able to exploit a feature in Microsoft’s Windows Messenger service.

The two 20-year-olds, owners of software company D-Squared Solutions LLC, have filed a counter-suit against the government’s effort to regulate pop-up advertisements, claiming that federal regulators are impinging on their right to free speech.

According to the Associated Press, D-Squared has been forced by the Federal Government to halt their aggressive pop-up ad campaign. The FTC’s original suit against the duo claimed that they had committed "high-tech extortion" by using the Windows glitch to generate pop-up ads as frequently as every 10 minutes, even when the user was not browsing the Internet.

The FTC alleged in its suit against D-Squared that the two men were “unlawfully” using the Microsoft network for their own business purposes and profits and that home users were unaware of how to stop the flurry of advertisements. However, D-Squared claims that instructions to disable the ads were readily available and that the FTC was overreacting.

D-Squared’s pop-up ads were marketing a software designed to block the same type of aggressive marketing they themselves were conducting.

D-Squared legal team is claiming that transmitting its pop-up ad campaign was not illegal. According to the AP, D-Squared insists that the Messenger technology is now widely considered a serious security threat for home computer users and that its ads helped warn consumers that their computers were at risk.

According to the AP, the two students are countering that the government's allegations go too far.

"It's very unusual for a company to aggressively fight an FTC enforcement action," Mark Rasch, an expert on technology law, told the AP. “Most companies in high-profile FTC lawsuits quickly settle, typically paying a fine and pledging to stop the disputed business practice.”

Both Dhingra and Davis are scheduled to testify in federal court next week.

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

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.

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.

European Commission: Age Verification App Ready For Use

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.

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.

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.”

Pennsylvania Legislature Weighs 'Porn Tax' Bill

The Pennsylvania State Senate is considering a bill that would impose a 10% tax on the revenue of adult websites doing business in that state.

Trump Tariffs Refund Process to Launch April 20

U.S. Customs and Border Protection (CBP) will begin the process of refunding duties paid under the Trump administration’s sweeping program of tariffs by providing, starting April 20, an online tool for submitting refund claims.

UK Government May Limit 'Step' Porn Ban With New Amendments

The U.K. Ministry of Justice on Friday revealed new government amendments to the pending Crime and Policing Bill, potentially limiting a planned ban on “step” content to apply only if adult performers role-play as minors.

Arizona Senate Removes 'Catch-22' Provision From Consent Bill

The Arizona State Senate has amended a bill that would impose new requirements for adult content uploaded online, removing a seemingly contradictory provision that could have effectively made it impossible for adult sites to operate in the state.

Show More