FTC Fines Pop-Up Company

WASHINGTON, D.C. – The Federal Trade Commission (FTC) sent a cautionary tale to the Internet advertising community this week when it flagged a San Diego company, claiming it took advantage of a glitch in Microsoft's Windows operating system to harass computer users with a six-month long blizzard of pop-up ads.

In some cases the ads were sent to certain computer users in ten-minute intervals.

According to the FTC, part of the campaign in question tried to cajole consumers into purchasing an anti-pop-up software program. But the text in the pop-up stated that if they didn't purchase the software program, the pesky ad campaign would only continue, if not worsen. The software in question sold from one of the company's numerous websites for between $25 and $30.

"This is nothing more than a high-tech version of a classic scam," said Howard Beales, director of the FTC's Bureau of Consumer Protection. "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."

The company in question, D Squared Solutions, LLC, launched its intensive pop-up campaign in May of this year based on a weakness in the Windows Messenger Service, according to the FTC. Windows Messenger Service is a network administrator communication system.

At any given time, D Squared Solutions was able to send an hourly onslaught of pop-up ads to 135,000 Internet addresses based on a database of 2 billion unique addresses, the FTC reported.

The FTC alleges that D Squared was using extortion-like tactics in its aggressive attempt to get people to buy its software. A temporary restraining order was issued against the company and legal action could include financial penalties.

The company's owners, Anish Dhingra and Jeffrey Davis, were told to discontinue their use of the Windows Messenger Service to send ads.

According to a statement issued by the FTC, D Squared has been charged with one count for extortion and one count for improperly using Windows Messenger Service to deliver unsolicited advertisements.

As a warning to the advertising community, the FTC said that it would not hesitate to fine companies in the future that use unsolicited messages to interfere with computer users. However, the FTC recognizes that pop-up advertising is a viable and legitimate form of Internet advertising.

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

Ohio AG Threatens Action Against 'Major' Adult Sites Over AV Law

Ohio Attorney General Dave Yost announced today that his office is sending "notice of violation" letters to 19 adult websites for failure to comply with the state's recently enacted age verification law.

Chaturbate Announces 2025 Music Contest Winners

Chaturbate has revealed the winners of its 2025 music competition.

2026 XBIZ Exec Awards Pre-Noms Open With Debut of New 'Impact' Honors

XBIZ is pleased to announce that the pre-nomination period for the 2026 XBIZ Exec Awards, the adult industry’s premier career honor, begins today and runs through Oct. 14.

MYM Rolls Out New Traffic Features for German Creators

German platform MYM has launched a new traffic system for its creators.

Ukrainian Content Creators on Hook for Nearly $10M in Back Taxes

Content creators in Ukraine owe the equivalent of $9.3 million in back taxes, according to the country's State Tax Service.

Updated: European Patent Office Board of Appeals Revokes EIS GmbH Patent

The European Patent Office (EPO) Board of Appeals last week ruled in favor of pleasure brand LELO in the company's ongoing dispute with Satisfyer parent company EIS GmbH.

Eroutique Relaunches Site Through YourPaysitePartner

Eroutique has relaunched its official website through YourPaysitePartner (YPP).

Update: Pornhub Will Not Block Ohio, Despite AV Law

Pornhub parent company Aylo will not block access to its websites in Ohio, despite new state age verification rules that came into effect Sept. 30.

Pineapple Support, Pornhub to Host 'ADHD-Friendly' Support Group

Pineapple Support and Pornhub are hosting a free online support group for performers with ADHD.

Judge Dismisses Some Claims in 'Children of Pornhub' Trafficking Suit

A United States district judge on Friday dismissed some but not all claims against Aylo in a long-running case involving CSAM allegations featured in the influential 2020 New York Times article “The Children of Pornhub.”

Show More