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 © 2025 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

FSC 2026/2027 Board Members Announced

The Free Speech Coalition (FSC) has announced the results of its 2026/2027 Board of Directors election.

Report: AVS Group Beefs Up AV After $1.3 Million Fine

Adult content provider AVS Group has begun to institute robust age checks on some of its websites after U.K. media regulator Ofcom last week imposed a penalty of approximately $1.3 million for noncompliance with Online Safety Act regulations, the BBC is reporting.

FSC: Federal Report Confirms Unfair Banking Discrimination Against Adult Industry

The Free Speech Coalition (FSC) today announced that a federal report on debanking has concluded that several U.S. banks engaged in discriminatory banking practices against members of the adult industry.

Pineapple Support Names Natalie Pereira Executive Assistant

Pineapple Support has appointed Natalie Pereira as its new executive assistant.

AEBN Publishes Popular Searches by Country for October, November

AEBN has released the list of popular searches from its straight and gay theaters by country in October and November.

FSC Summit Event Schedule Announced

Free Speech Coalition (FSC) has revealed its slate of networking events and symposiums for its annual summit, set for January 15 during XBIZ 2026.

Pornhub Releases 2025 'Year in Review' Report

Pornhub has released its “Year in Review Insights” report for 2025, the 12th edition of the site’s annual statistics, data analysis, and infographic initiative.

Washington AV Bill Jumps on 'Health Warning' Bandwagon

A new age verification bill in the Washington state legislature would require adult sites to post notices warning users of alleged health risks, despite a previous federal court ruling against such requirements.

BranditScan Launches '25 Days of Christmas' Promo

BranditScan has launched its 25 Days of Christmas promotion.

MelRose Michaels Named Host of Online Industry Edition of XBIZ Honors

Performer and entrepreneur MelRose Michaels will MC the online industry edition of the 2026 XBIZ Honors, set for Wednesday, Jan. 14, at the Kimpton Everly Hotel in Hollywood.

Show More