blood from Direct Revenue

This week, the FTC settled a dispute with parasitic adware firm Direct Revenue, whose software, surreptitiously installed, bedeviled so many computers a few years ago. The agreement requires the company to pay a $1.5 million fine and get explicit permission before downloading software onto someone’s PC, something it blatantly failed to do in its first few years of existence.

Commissioner John Leibowitz filed a dissent and makes a persuasive argument that the fine is not heavy enough, given the pain and frustration the company caused millions of Internet users.

A few years ago — before the class action lawsuit, the legal assault by Eliot Spitzer, and the action by the FTC — I investigated the secretive Direct Revenue for a piece that ran on Newsweek’s Web site. Somewhere in my files, I have CEO Joshua Abrams’ angry letter disputing the story. If I find it I’ll post it. In light of recent conclusions about the company’s nefarious behavior, I’m sure the letter now appears hilariously disingenuous.

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