FTC Halts Deceptive P2P Ads

WASHINGTON – A Los Angeles file-sharing company is in hot water with the Federal Trade Commission after being accused of using deceptive advertising to lure users looking for free downloads of copyrighted material.

Membership site MP3DownloadCity.com, which promotes the use of peer-to-peer file-sharing software programs to download digital music, movies and computer games, was forced by a U.S. District Court judge to remove all ads that made users think that by subscribing to the service, P2P file sharing was legal.

The defendant in the case, Cashier Myricks Jr., used deceptive ad slogans such as: “And best of all, people are not getting sued for using our software,” and “Download and watch DVDs and movies still in theaters and rest assured that file sharing is 100% legal.”

Myrick claims his site is Napster’s No. 1 replacement.

A temporary restraining order was issued on Sept. 27 by U.S. District Court in Los Angeles, and the FTC intends to seek a permanent bar on the deceptive claims, redress for consumers, and require the defendant to notify consumers who signed up for membership that the programs promoted through the advertising campaign may subject them to civil or criminal liability.

A hearing to extend the court’s temporary ban on defendants’ deceptive claims is scheduled for Friday.

The FTC was assisted by The Center for Democracy and Technology in its investigation of the Myricks case.

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