FTC Settles With Internet Marketing Firm

SAN DIEGO, Calif. — In one of the first legal maneuvers by the Federal Trade Commission to address pop-up ads, the agency said it settled with San Diego-based D Squared Solutions LLC, which agreed to stop bombarding web surfers with advertisements.

But the Friday announcement appears to be fruitless for the FTC because D Squared is now out of business, former president Anish Dhingra told XBiz.

The FTC's legal case against D Squared was seen as an attempt to limit an often-intrusive form of advertising that exploits technology built into Microsoft Corp.'s Windows software.

Dhingra said that his company only offered ads for its own ad-blocking software. “We never had anything to do with adult,” Dhingra said.

With the settlement, D Squared agreed not to send pop-up ads using the Messenger function enabled on many Windows operating systems; such ads do not require an open Web browser to display. The company also agreed not to sell ad-blocking software in the future, and it is barred from sending other ads unless users can choose not to receive them.

The FTC alleged that using Messenger, D Squared was able to send pop up ads every 10 seconds in the form of dialogue boxes that usually appeared in the middle of the computer screen. This function was initially designed for network operators to send systemwide messages to employees.

The FTC said the practice was a hassle to consumers and misled them into thinking there was nothing they could do to stop the ads.

The company's founders, Dhingra and Jeffrey Davis, do not admit wrongdoing and do not face any penalties.

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

FSC Case Against Tennessee AV Law Can Go Forward, Court Rules

A U.S. district court on Tuesday denied the Tennessee attorney general’s motion to dismiss a Free Speech Coalition lawsuit challenging the Protect Tennessee Minors Act as unconstitutional.

AEBN Publishes Popular Searches for July, August

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

2027 XMA 'Fan Favorite' Pre-Nominations Period Now Open

XMA event organizers have announced that the pre-nomination period for Fan Favorite categories for the January 2027 ceremony is now open.

California Legislature Passes Stricter UGC Rules for Adult Sites

A bill to impose tighter compliance standards for user-generated content (UGC) on adult websites has been approved by the California state legislature and now awaits the governor’s signature.

CollabGPS Rolls Out 'Verification Badge' Update

CollabGPS has launched a badge system for user verification.

X3 Amsterdam Imports Hollywood Glitz With Continental Style

A throng of fans from across Europe and around the globe descended on the Passenger Terminal building on Friday, eager to meet their favorite adult stars at the inaugural X3 Amsterdam fan expo.

California, Florida Reps File Latest Bill to Repeal Section 230

Two members of Congress on Thursday introduced new legislation to repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Admaze Introduces Flat-Rate Media Buying for Publishers, Advertisers

Adult ad network and agency Admaze has introduced a flat-rate media buying model for publishers and advertisers.

Centro Launches Lifetime Revenue Share Affiliate Program 'CentroPulse'

Centro has launched CentroPulse, its new lifetime revenue share affiliate program for performance marketers, adult traffic affiliates, established webmasters, and sub-affiliate network operators.

Fanstage Launches Telegram Sales Solution

Fanstage has launched its new platform, allowing creators to sell PPV content directly from their Telegram DMs.

Show More