By Jimmy Daniels
Contributing Writer, RealTechNews

Now who would’ve thought this could happen, other than, anyone who was ever infected with a Zango product. Known spyware hunter Ben Edelman has released his findings in how well Zango is sticking to the FTC settlement, how did it go for Zango? Not too Good! In fact, some of the problems he saw are remarkably widespread, including installations syndicated across the web via top ad networks.

In my hands-on testing, Zango continues numerous practices likely to confuse, deceive, or otherwise harm typical users as well as practices specifically contrary to Zango’s obligations under its November 2006 settlement with the FTC.

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’s effects only in a lengthy EULA – exactly contrary to the FTC settlement’s requirements.

Zango’s ongoing practices also include prominent pop-up ads promoting sites that attempt to defraud users (e.g. by charging for software that is actually free), as well as widespread in-toolbar ads without the labeling and hyperlinks specifically required under the FTC settlement.

This article summarizes selected incidents I have recently observed. In particular:

  • Widespread Zango “ActiveX” Installations without Unavoidable, Prominent Disclosure of Material Terms (XP SP1 and Earlier).
  • Widespread Zango Banner-Based Installations without Unavoidable, Prominent Disclosure of Material Terms (XP SP2).
  • Ongoing Zango Installations with No Disclosure Whatsoever.
  • Unlabeled Zango Ads – Toolbars, Desktop Icons, and Pop-Ups.
  • Zango Ads for Bogus Sites that Attempt to Defraud Users.

These practices call into question the integrity of Zango’s business, as well as the status of Zango’s compliance with its obligations under its recent settlement with the FTC. Source: Ben Edelman

We Say: As Ben said in his write-up, I await a tough and effective response from the FTC. Wrapping some posts together for it here, Zango and the FTC.