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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
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