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November 21, 2006 12:42 PM PST

FTC axes two alleged spyware operations

The U.S. Federal Trade Commission announced Tuesday that it has permanently shut down an alleged spyware operation run by Odysseus Marketing and its principal, Walter Rines. Odysseus Marketing had deceptively installed spyware on consumers' computers by advertising free downloads that turned out not only to be bogus, but also bundled with malicious software, the agency said. The FTC has also alleged that Odysseus Marketing exploited Microsoft Internet Explorer security vulnerabilities for covert installations. Once installed, the spyware harvested personal information, changed search results and plagued browsers with advertisements. Removal of the spyware, according to the FTC, was unreasonably difficult. Tuesday's settlement bars Odysseus Marketing and Rines, who had originally been charged with spyware allegations in October 2005, from implementing secret downloads, exploiting security vulnerabilities and misrepresenting the nature of a product. Additionally, the defendants must pay $50,000 to cover ill-gotten gains and face a $1.75 million judgment.

The FTC also issued a settlement Tuesday involving John Robert Martinson, principal of Spy Deleter, formerly Mailwiper. According to the FTC, Martinson marketed his "antispyware" brands Spy Wiper and Spy Deleter by paying spyware companies Seismic Entertainment and SmartBot.Net to advertise and sell the software. When customers were barraged with spyware antics, they were given warnings to pay $30 for Spy Wiper or else face permanent problems with their computer's hardware. Martinson has been barred from further spyware practices and may have to also pay a $1.86 million judgment if a court finds that he has misrepresented his inability to pay.

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2 comments

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Too little too late
Why couldn't they have started these investigations, I don't know, in 1998?
Posted by airwalkery2k (117 comments )
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Pickle jar
"...and its principal, Walter Rines"

Anyone else remember Rines as "Pickle jar"?
Posted by poster48150 (139 comments )
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