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Direct Revenue Fined $1.5MM by FTC for Adware Hijinks

Adware firm Direct Revenue has agreed to pay $1.5 million to settle charges by the Federal Trade Commission that the firm and its four principals caused adware to be installed on consumers' PCs and deliberately made the software difficult to remove, the Associated Press reports.

The FTC said Direct Revenue offered consumers free screensavers and games, and without adequate notice included its adware, which tracked consumers' web use and served up targeted pop-up ads. The settlement bars Direct Revenue from downloading its adware without consumers' express consent and requires it to establish easy ways to remove the software from computers.

FTC Commissioner Jon Leibowitz, the sole vote against the settlement, said the $1.5 million fine "is a disappointment because it apparently leaves Direct Revenue's owners lining their pockets with more than $20 million from a business model based on deceit."

Direct Revenue said it cooperated with the FTC and is "pleased" with the settlement. It blamed third-party distributors for violating the FTC's rules.

Direct Revenue also said it is permitted to continue to show advertisements to all consumers who installed its software after October 1, 2005. The FTC agreement also provides a mechanism for consumers who installed the software before that date to agree to continue receiving advertisements from Direct Revenue.

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