Bogus Spyware Operators Settle with FTC

WASHINGTON – Looking down the barrel of a $2 million forfeiture in ill-gotten gains, two anti-spyware operators have agreed to settle charges with the Federal Trade Commission that their services were bogus and violated federal law.

According to an FTC report, Spyware Assassin, its affiliates, and Trustsoft both promoted spyware detection products that either did not work or did not work as advertised. Both companies would conduct “scans” claiming to detect illegal spyware on a user’s computer, which was then remedied by selling the customer anti-spyware software for $29.95.

Spyware Assassin was first accused of fraudulent business practices in March 2005. The FTC charged at the time that the company and its affiliates used websites, email, banner ads and popups to drive consumers to the Spyware Assassin website where the bogus scans would take place.

According to the FTC, one set of Spyware Assassin defendants will be barred from selling or marketing any anti-spyware products or services in the future.

In June 2005, the FTC charged Trustsoft with using similar tactics to sell its SpyKiller software. The FTC alleged the defendants sent popup and email messages informing consumers that their computers had been remotely scanned and that spyware had been detected, even though defendants had not performed any such scans.

The FTC’s complaint alleged that the anti-spyware software that both companies sold did not remove all or substantially all spyware, and the defendants’ deceptive claims violate the FTC Act, which bars deceptive claims.

Spyware Assassin owner Thomas L. Delanoy and his corporation, MaxTheater Inc., will pay $76,000 -- the full amount of consumer injury. The settlement will ban the defendants from selling or marketing any anti-spyware products in the future.

Trustsoft owner Danilo Ladendoft will pay approximately $1.9 million to settle the FTC charges. The settlement will prohibit them from making deceptive claims in the sale, marketing, advertising, or promotion of any goods or services and prohibits the specific misrepresentations used in promoting SpyKiller.

U.S. District Courts ordered a halt to the deceptive practices of both operations, pending trials. The settlements announced today end those lawsuits.

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

Segpay Partners With Corey Silverstein for Legal Services

Segpay has partnered with adult industry attorney Corey D. Silverstein for specialized legal compliance and policy support for its merchant network.

AEBN Reveals Kasey Kei as Top Trans Star for Q2 of 2026

AEBN has named its top trans stars for the second quarter of 2026, with Kasey Kei landing atop the leaderboard.

Missouri Governor Signs Bill Making AV Regulations State Law

Missouri Governor Mike Kehoe signed a bill into law on Thursday requiring adult websites to age-verify users in the state, finalizing a legislative “stamp of approval” for AV rules after Missouri’s attorney general unilaterally imposed similar regulations last year.

Utherverse Launches 'Adult Game Fest' Virtual Convention

Virtual reality and metaverse technology company Utherverse is launching its inaugural Adult Game Fest convention and trade show, taking place Sept. 24-26.

Ofcom Fines Fapello $845,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 630,000 pounds (about $845,000) against adult website fapello.com for failing to comply with provisions of the Online Safety Act.

KiwiSourcing Joins Pineapple Support as Sponsor

Outsourcing and consulting firm KiwiSourcing has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

AdultHTML Introduces AI-First Development Services

AdultHTML has introduced an AI-first development service, giving clients access to experienced software developers who use AI to streamline software development.

Texas Court Orders Adult Site Domain Locked for AV Violations

A district court in Texas has issued a writ requiring domain registry Verisign to “lock” an adult website’s domain over noncompliance with the state’s age verification law.

Adult Web Hosting Service 'QloudHost' Launches

QloudHost, a new web hosting service for adult websites, has launched.

Peter Hooke Launches New Paysite

Peter Hooke has launched an official website through PAYSITE.

Show More