District court halts keylogger spyware sales
A U.S. District Court has temporarily halted the sale of RemoteSpy keylogger spyware at the request of the Federal Trade Commission, which claims the software violates the FTC Act.
The FTC filed a complaint (PDF) against Florida-based CyberSpy Software on November 5, alleging the company has violated the FTC Act by selling software that can be deployed remotely by someone other than the owner or authorized user of a computer, can be installed without the owner's knowledge, and can used to surreptitiously collect and disclose personal information. The FTC also claims CyberSpy unfairly collected and stored personal information gathered with RemoteSpy.
In its complaint, the FTC asked the U.S. District Court for the Middle District of Florida, Orlando Division, to issue a temporary restraining order halting the sale of RemoteSpy while its case is pending, permanently ban the sale of RemoteSpy, and require CyberSpy to pay restitution for any injury to consumers resulting from its violations of the FTC Act.
The court, in its temporary restraining order filed November 6 against CyberSpy, said there is a "substantial likelihood" that the FTC will be able to prove the spyware maker violated the FTC Act.
"The sale and operation of RemoteSpy is likely to cause substantial harm to consumers that cannot be reasonably avoided and is not outweighed by countervailing benefits to consumers or to competition," the court wrote. "The likely harm includes financial harm (including identity theft) and endangering the health and safety of consumers."
Along with barring CyberSpy from selling RemoteSpy, the restraining order bars the company from disclosing or making available any information obtained through the software. It also requires CyberSpy to ensure any Web sites associated with the product, including www.remotespy.com, are not publicly accessible.
The FTC's complaint names Tracer R. Spence, the registered agent and manager of CyberSpy, as liable for the charges against the spyware maker.
CyberSpy's possible violations were first brought to light to the FTC in a complaint (PDF) filed in March by the Electronic Privacy Information Center.
Though other federal agencies have been known to use keylogger software, the FTC has been challenging the distribution of spyware for the past four years.
Stephanie Condon is a staff writer for CNET News focused on the intersection of technology and politics. She is based in Washington, D.C. E-mail Stephanie. 
The real thing that companies have to do is LOWER THEIR PRICES. Stop trying to milk the American consumer for every single cent you don't get overseas because of pirating.
$60 for a pc game....NUTS!
- by Harrison912 November 18, 2008 12:05 PM PST
- As a web site owner of safety and security products, we have to be careful banning products that are used for good purposes just because a few bad people find ways to use them for criminal activity.
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- by jlees November 18, 2008 8:19 PM PST
- Thats right We should be more like Russia under Stalin and Germany under Hitler they they spied on everyone, I mean isn't it a good thing to spy on people
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- by mk1286 December 7, 2008 5:08 PM PST
- I could not agree more with you, Harrison912. I am a customer of RemoteSpy and use the product to monitor my child's use on the computer. I now feel safe knowing what my child is looking at and doing on the computer while I am away. RemoteSpy has updated their blog with a press release, you can review it here: http://www.remotespy.com/blog/
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(9 Comments)We wouldn't consider banning computers just because bad people use them to send viruses to other computers or to steal people's identities. We wouldn't ban cars because they're used in bank robberies or for sexual assaults. We wouldn't ban cell phones because they're used by bad people to take pictures that can harm another's reputation or cause accidents when people try to drive and text so why would we want to ban keyloggers because bad people use them in a harmful way.
Parents can use them to keep an eye on their children's internet activity to make sure they aren't being stalked by online predators or online bullies. Companies use them to make sure their computers are being used for the purpose they are intended and law enforcement use them to gain the evidence they need to prosecute suspected criminals.
To coin an old phrase, "Don't throw the baby out with the bathwater.". Let's be smart and go after the offender not the tool they are using to do their dirty work.