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

On-Chain JAV Distribution Platform 'HandSome' Goes Live With Open Beta

Fukuoka tech firm Fidem has officially rolled out an open beta version of HandSome, a new Japanese Adult Video (JAV) content distribution platform built on blockchain technology.

Arcom Investigates Mym Over SREN Compliance

French media regulator Arcom is investigating creator platform Mym to determine whether the site may have violated age assurance rules and/or other requirements of France’s Security and Regulation of the Digital Space (SREN) law.

England, Wales to Enforce 'Extreme' Content Laws Starting Nov. 6

England and Wales will begin enforcing new laws criminalizing depictions of “non-fatal strangulation,” as well as sexual content in which adults portray underage characters, starting Nov. 6, the U.K. Ministry of Justice announced Friday.

Report: UK Film Classification Board to Monitor 'Extreme' Content Online

The U.K. government has tapped the British Board of Film Classification (BBFC) for a pilot program to monitor online pornography for illegal and “extreme” content, as it prepares to enforce new content restrictions, British media outlet Sky News is reporting.

New Federal Report Slams Debanking but Ignores Adult Industry

The Office of the Comptroller of the Currency (OCC) on Wednesday released a report on debanking activities at nine large national banks, but omitted any mention of the adult industry, despite previously identifying it as a sector facing banking discrimination.

EU Court Rejects Stripchat Challenge of Past VLOP Designation

The EU’s General Court on Wednesday ruled against Stripchat in a lawsuit seeking to annul a 2023 European Commission decision designating the site as a “very large online platform” (VLOP) under the Digital Services Act (DSA).

Aylo Case Against Utah VPN Rule on Hold Pending Legislative Changes

A federal court has paused Aylo’s suit over a Utah law making adult websites liable if minors bypass age verification by circumventing geolocation efforts, until the state legislature can meets to potentially amend the statute.

German High Court Puts Pornhub, YouPorn 'Network Ban' on Hold

A German high court on Friday temporarily barred a state media regulator from ordering internet providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn in Germany, pending further action by Cypriot and European Union authorities.

Luxembourg Media Regulator Fines LiveJasmin for AV Noncompliance

The Luxembourg Independent Audiovisual Authority (ALIA) has levied a fine of 25,000 euros (approximately $28,000) against webcam platform LiveJasmin for failing to comply with provisions of the country’s Electronic Media Law.

AdultHTML Introduces Subscription Option for Website Owners

AdultHTML has added a subscription option for its web development service, allowing site owners to pay a monthly fee for access to developers and tools.

Show More