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	<title>WebProNews &#187; Ben Edelmen</title>
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		<title>Zango Ignoring FTC Requirements</title>
		<link>http://www.webpronews.com/zango-ignoring-ftc-requirements-2007-08</link>
		<comments>http://www.webpronews.com/zango-ignoring-ftc-requirements-2007-08#comments</comments>
		<pubDate>Wed, 01 Aug 2007 15:53:07 +0000</pubDate>
		<dc:creator>WebProNews Staff</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Adware]]></category>
		<category><![CDATA[Ben Edelmen]]></category>
		<category><![CDATA[blog]]></category>
		<category><![CDATA[FTC]]></category>
		<category><![CDATA[requirements]]></category>
		<category><![CDATA[Settlement]]></category>
		<category><![CDATA[spyware]]></category>
		<category><![CDATA[Zango]]></category>

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		<description><![CDATA[<p>Sneaky pop-up ad company Zango settled with the Federal Trade Commission last November, paying $3 million in penalties and agreeing to stop duping users into downloading adware. But it appears the company is still up to its old tricks. <br />
]]></description>
			<content:encoded><![CDATA[<p>Sneaky pop-up ad company Zango settled with the Federal Trade Commission last November, paying $3 million in penalties and agreeing to stop duping users into downloading adware. But it appears the company is still up to its old tricks. <br />
<span id="more-39491"></span> <br />
<em>The reason the government began imposing jail time on insider traders and books-cookers in the financial sector is because companies were taking calculated risks by adjusting their business plans to allow for government fines. What&#8217;s a few million dollars to make billions? </em></p>
<p>Ben Edelman, a professor at Harvard Business School and certainly no fan of Zango (formerly 180solutions), has gathered evidence suggesting Zango is willingly and openly violating the terms of <a title="Zango settles with the FTC" href="http://www.webpronews.com/topnews/2006/11/06/ftc-slaps-zango-on-the-wrist">the FTC settlement.</a></p>
<p>On <a title="Edelman presents his case against Zango" href="http://www.benedelman.org/spyware/zango-violations/">his blog</a>, he presents his case:</p>
<blockquote><p><em>Among these practices are widespread, ongoing Zango-designed installation sequences which install Zango pop-up ad software without any on-screen disclosure of material terms. Instead, these installations mention Zango&#8217;s effects only in a lengthy EULA &ndash; exactly contrary to the FTC settlement&#8217;s requirements. </em></p></blockquote>
<blockquote><p><em>Zango&#8217;s ongoing practices also include widespread in-toolbar ads without the labeling and hyperlinks specifically required under the FTC settlement. Other Zango ads, including desktop icons and even certain pop-ups, also lack these labels and links. </em>
</p></blockquote>
<p>Perhaps the company filed the FTC fine under &quot;Business Expenses.&quot;</p>
<p>Edelman presents a thorough (read: lengthy) investigation, complete with screenshots. In a summary, Edelman cites ActiveX installations, banner-based installations, both without proper disclosure, unlabeled ads, toolbars, desktop icons and pop-ups, and ads for bogus sites with the intent to defraud users.&nbsp;</p></p>
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