logo

U.S. PIRG Consumer Blog

« Predatory payday lender campaign to block reforms | Main | Jet Blue seems to have the idea »

February 21, 2007

FTC commissioner dissents from settlement that fails to disgorge profits

Last week the Federal Trade Commission settled a case against the adware company DirectRevenue for a variety of deceptive, deceitful and disgraceful practices that, among other things, including bundling pop-up adware with supposed anti-popup software, according to a dissent by Commissioner Jon Leibowitz. Commissioner Leibowitz dissented not because the injunctive provisions stopping future practices were inadequate, but because his 4 colleagues stopped short of forcing the principals of DirectRevenue to disgorge their ill-gotten gains:

But the $1.5 million in monetary relief that the Commission obtained as part of the consent agreement is a disappointment because it apparently leaves DirectRevenue’s owners lining their pockets with more than $20 million from a business model based on deceit.
Good work, Commissioner. Leibowitz also commended the New York Attorney General's office for its settlement with several big companies -- Priceline, Travelocity, and Cingular Wireless -- that used DirectRevenue services without due diligence to protect their customers from its predatory business model. Update: spelled Leibowitz correctly.

Posted by Ed Mierzwinski at February 21, 2007 09:18 AM


Comments

Post a comment




Remember Me?



218 D. Street, SE Washington, DC 20003
Phone (202) 546-9707

E-mail: