Secure Computer, which allegedly marketed its Spyware Cleaner and Popup Padlock software through deceptive spam and popup ads, will have to pay $725,000 in legal fees, $200,000 in civil penalties, and $75,000 in reimbursements to Washington state customers who purchased its software.
“This settlement with Secure Computer is a significant victory for the Attorney General’s Consumer Protection High-Tech Unit, Washington consumers and the online marketplace,” McKenna said. “It sends a strong message to Internet businesses that they must promote their products ethically and legally. We won’t tolerate deceptive marketing such as ‘scareware’ that preys on consumers’ fears about spyware and online threats.”
McKenna’s office sued Secure Computer under state and federal anti-spam and spyware laws, claiming they induced computer users to download software that weakened its computers’ security. The ads would offer to perform free spyware scans on a user’s computer, but would always report a problem with the scanned computer, even if it was clean, and offer Spyware Cleaner as a solution.
“Our investigation found that this so-called free scan always detected spyware, even on a clean computer,” said Senior Counsel Paula Selis, who helped lead the state’s investigation and settlement negotiations. “In order to remove this falsely detected spyware, users were instructed to pay $49.95 for the full version of Spyware Cleaner. Washington’s spyware law makes it illegal to induce a computer user to download software by falsely claiming the software is necessary for security purposes.”
Under the terms of the settlement, Secure Computer will contact the more than 1,100 people who bought Spyware Cleaner and offer them a $50 refund.
McKenna also put companies on notice that they would be responsible for the online marketing actions of their third-party advertisers or affiliates.
“Internet businesses are responsible for ensuring that third-party advertisers and affiliate marketers, as well as their own staff, do not boost sales through misleading pop-up ads, phony results of so-called free scans, bogus hyperlinks or other online trickery,” McKenna said.
Secure Computer stopped selling Spyware Cleaner when Washington State filed its lawsuit and has since gone out of business.
