Hey FTC, Zango is Still Doing It

By Jimmy Daniels
Contributing Writer, RealTechNews

I know everyone is not going to believe this, but Zango is still not complying with the requirements the FTC placed on them recently when they settled with the FTC. Zango said in a reply to the settlement that they have been in compliance since January 1, 2006, and it still makes me laugh.

In its November 3 press release, Zango claims its reforms are already in place. “Every consumer downloading Zango’s desktop advertising software sees a fully and conspicuously disclosed, plain-language notice and consent process,” Zango’s press release proclaims. This claim is exactly contrary to the numerous examples we present above. Zango further claims that it “has met or exceeded the key notice and consent standards detailed in the FTC consent order since at least January 1, 2006″ — again contrary to our findings that nonconsensual and deceptive installations remain ongoing.

From the FTC’s press release and from recent statements of FTC commissioners and staff, it appears the FTC intends to send a tough message to makers of advertising software. We commend the FTC’s goal. The proposed settlement, if appropriately enforced, might send such a message. But we worry the FTC will send exactly the opposite message if it allows Zango to claim compliance without actually doing what the proposed settlement requires.

As a first step, we endorse CDT’s suggestion that the FTC require Zango to retract its claim of compliance with the proposed settlement. Zango’s statement is false, and the FTC should not stand by while Zango mischaracterizes its behavior vis-a-vis the proposed settlement. Source: Ben Edelman

We Say: In his report he gives eight examples of things they are doing that are not in compliance, like “Material Terms” Disclosed Only in EULA, “Material Terms” Omitted from Disclosure, Disclosures Not Clear & Prominent, Disclosures Presented Only After Software Download & Execution, No Disclosure Provided Whatsoever, Installation & Servicing of Legacy Programs, Installations Promoted & Performed through Miscellaneous Other Deceptive Means & Circumstances, and Unlabeled Advertising. Wow. that’s a lot of stuff for it just to be another mistake, who thinks the people at Zango don’t care and are just sucking up as much money as they can until they finally decide to try to sell it to someone else? I guess the ball will be in the FTC’s court now.