FTC Settles With Pop-Up Ad Company

SAN DIEGO, Calif. — The Federal Trade Commission has reached an out-of-court settlement with D Squared Solutions LLC to stop barraging the Internet with pop-up ads. D Squared advertised its software to block the pop-up ads it was transmitting – unsolicited - to users online.

On Nov. 6, 2003, the FTC referred to D Squared’s business practice as a “pop-up spam scam.” Howard Beales, director of the FTC’s Bureau of Consumer Protection, said: “This is nothing more than a high-tech version of a classic scam. The defendants created the problem that they proposed to solve – for a fee. Their pop-up spam wasted computer users’ time and caused them needless frustration.”

According to the Associated Press, D Squared claimed it could send pop-ups to as many as 135,000 Internet addresses each hour and had a database of 2 billion addresses. The intrusive pop-ups could be sent every 10 seconds.

The software D Squared sold to block the pop-ups it was bombarding users with cost up to $30.

The FTC dropped its civil suit against D Squared in exchange for the company agreeing to stop using the Windows Messenger Service to flood users with pop-ups. D Squared also agreed to halt selling its software that would block the pop-ups.

In addition, D Squared can no longer send online ads that do not provide users with an option not to receive them. The FTC is also going to monitor D Squared through 2009.

D Squared was established by two University of California in San Diego students, Anish Dhingra and Jeffrey Davis. Under the terms of the settlement, Dhingra and Davis did not have to admit wrongdoing and will not face prison time.

In related Federal Trade Commission news, FTC Chairman Timothy Muris announced on Aug. 2 that he is resigning, effective Aug. 15.

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

Pineapple Support Releases End of Year Review for 2025

Pineapple Support has released its End of Year Review for 2025, detailing the organization's achievements, challenges, and new initiatives.

XBIZ Miami 2026 Lets the Good Times Roll at New South Beach Venue

Pack your favorite shades and sexiest poolside looks, because XBIZ Miami is splashing into a new hotspot — the chic Goodtime Hotel in the heart of Miami Beach — May 11–14.

Arcom Threatens to Block, Delist 2 Adult Sites Over AV Violation

French media regulator Arcom has sent enforcement notices to the operators of two adult websites that the agency says have failed to implement age verification as required under France’s Security and Regulation of the Digital Space (SREN) law.

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

FTC Takes Another Step Toward New 'Click to Cancel' Rule

The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

Pineapple Support, Brazzers to Host 'Navigating Relationships' Support Group

Pineapple Support and Brazzers are hosting a free online support group for performers to build and maintain healthy relationships.

Aylo, SWOP Behind Bars to Host 'Deplatforming' Community Panel

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars will host a panel on creators’ rights and deplatforming on Feb. 10 at 3 p.m. (EST).

Adult Trade Group Pearl Industry Network to Debut at Taboo Vancouver

Pearl Industry Network (PiN), a new trade group for the adult industry focused on content creators, will debut at Taboo Vancouver adult lifestyle and wellness expo next week.

New Creator Platform 'OnlyPhones' Launches

OnlyPhones, a new phone-based creator platform, has officially launched.

AEBN Reveals Ariel Demure as Top Trans Star for Q4 of 2025

AEBN has published its top trans stars list for the fourth quarter of 2025, with reigning XMAs Trans Performer of the Year Ariel Demure landing atop the leaderboard.

Show More