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

JustFor.fans Launches Curated 'Tom of Finland' Section

JustFor.fans (JFF) has launched a curated section based on artist Tom of Finland's work, featuring creators inspired by it.

Dutch Police Raid Servers Hosting 'Motherless' Website

A Dutch National Police Corps cybercrime team on Tuesday conducted raids on hosting companies in three cities, seizing servers owned or used by controversial adult website Motherless, as part of an investigation into possible illegal content.

MyMember.site Rolls Out 'TantumPay' Solution

MyMember.site has debuted its TantumPay payment processing solution.

StreamPayments Joins ASACP as Corporate Sponsor

Payment service provider and consultancy firm StreamPayments has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

AdultHTML Introduces Custom AI Projects Development Service

AdultHTML has introduced its customizable AI projects development service.

Eporner Must Face Copyright Suit After Judge Affirms Jurisdiction

A U.S. district court has ruled that it has jurisdiction to hear a copyright infringement lawsuit brought by adult website operators against tube site Eporner, even though Eporner is based outside the United States.

BranditScan Launches Public API, Affiliate Program

BranditScan has launched a public API and a new affiliate program enabling creator platforms to integrate the company’s anti-piracy services and earn recurring commissions.

Kenna James, Derek Kage Cap AEBN's Top Stars for 2nd Quarter of 2026

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

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.

Show More