Stories
Slash Boxes
Comments

News for nerds, stuff that matters

Slashdot Log In

Log In

Create Account  |  Retrieve Password

Anti-Spyware Law Snags Anti-Spyware Vendor

Posted by Zonk on Thu Dec 07, 2006 01:09 PM
from the guess-their-product-wasn't-very-good dept.
Country Lawyer writes "Washington state's anti-spyware law has just resulted in a $1 million victory for the state, the first successful prosecution under the new law. The weird thing? They sued an anti-spyware vendor." From the article: "Washington State went after the company after 1,145 state residents purchased the software and the complaints began rolling in. Secure Computer president Paul Burke will now pay $200,000 in penalties, make $75,000 worth of restitution to Washington residents, and pay another $725,000 to cover the state's attorneys' fees. The irony of an anti-spyware law being used against an anti-spyware vendor was not commented upon."
+ -
story
This discussion has been archived. No new comments can be posted.
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
 Full
 Abbreviated
 Hidden
More
Loading... please wait.
  • BS (Score:5, Insightful)

    by cwells (58526) on Thursday December 07 2006, @01:11PM (#17148916) Homepage
    "$725,000 to cover the state's attorneys' fees"

    that's just insane!
    • ... 459 days per year the hours add up pretty quickly.
    • ...remember that one reason that laws like this create a state right of action on behalf of the victims is because they address cases where the cost of litigation is prohibitive for private plaintiffs given the uncertainty of success and the work required to make the case and the small amount of damages, but when claims are aggregated, even though it is still expensive to litigate. Aggregating the claims mitigates somewhat the imbalance between the cost of litigation and the available damages, but often not
    • Actually, not insane (Score:4, Informative)

      by Presence1 (524732) on Thursday December 07 2006, @02:27PM (#17150266) Homepage
      Assume a billable rate of $150 per hour, which is more than the average general practice firm charges, but far less than the $300+ that big city specialist firms charge for their most experienced people. At the $150 rate, it takes only 4834 billable hours to to get to $725K, and that is excluding expenses (expert witnesses, courier services, etc.).

      With 2000 work hours per year, that is less than three attnys full time for a year. With a case that complicated, and testing a new law (so they REALLY want to get it right to set the good prescedent), this doesn't seem unreasonable.

      Of course, I'm sure he doesn't get a discount, or get to nit-pick the bill either.
      • Re:BS (Score:5, Funny)

        by Loco Moped (996883) on Thursday December 07 2006, @01:19PM (#17149056)
        Absolutely. Lawyers have no right to be paid for their work.

        When's the last time we paid sharks for eating swimmers?
        Same principle applies.

        • Re:BS (Score:4, Funny)

          by LordEd (840443) on Thursday December 07 2006, @01:29PM (#17149242)
          Actually, the difference is the lawyers bill you for the suit, the soap and water to clean it, and the time.
        • Re:BS (Score:4, Funny)

          by soft_guy (534437) on Thursday December 07 2006, @01:59PM (#17149788)

          The difference between a lawyer and a Mobster is that lawyers are afraid of getting blood on their suits.
          I always thought the difference was that mobsters have a code of ethics.
      • These guys were con artists and should be fined severely, but couldn't more of that money have gone to the people who were duped? Then again the people who wrote the law were probably lawyers and needed to make sure they could have something to gain.

        The lawyers in this case were the Washington State Attorney General's office. In other words, by goin to the lawyers, the money is going into the State of Washingtons coffers, and helps to lower taxes, benifiting the people who were duped.
        • Re: (Score:3, Informative)

          Yeah, that's not where the money is likely to go and no one ever sees a decrease in their tax rate just because some large fines and penalties are to be collected. I have yet to see a letter in the mail saying "good news! you don't have to pay as much tax this year because we sued a bunch of jerks!"

          I have learned a lot about taxes and the public's misconception of them... especially where federal taxes are concerned. For every expense that the government makes, there's supposed to be a tax that takes car
          • Re: (Score:3, Interesting)

            In that case, it's the law that needs to be changed. Currently, it appears that it only severes to get your money back+ some small ammount. If they want damages, I guess there is small claims court. Laws haven't exactly caught up to the computer age, or the domino effect that a crazy computer program can cause on a system (computer or otherwise).
      • by Presence1 (524732) on Thursday December 07 2006, @03:11PM (#17151066) Homepage
        There may be abuses, overcharges, and skewed payouts, but saying the nobody of some profession should ever earn more than $X per hour is absurd.

        What you say is equivalent to some PHB saying that no programmer or system designer should ever earn more than $50 per hour.

        In fact, some should earn much less, and some much more. Hourly rates are really just a shorthand in the capitalist system for how quickly you generate value.

        I've got considerable experience in software and corp management, and so often had to deal with lawyers, mostly on IP and contract issues. As I worked with them, I was intrigued to find out how much the work resembled software development. In both arenas, one needs to evaluate the scope of the project, anticipate the opportunities, obstacles, and pitfalls, then design a structure that will handle all these cases. Once a overall plan and structure is selected, then the detailed modules or sections are crafted using custom code or language where necessary, and reusing pre-tested code or language where possible. SW Developers use the languages chosen for the project, and Lawyers use the English language and Terms of Art. Both professions have barely competent people at the bottom and utterly brialliant people at the top. Both have utter scumbags who should be shot on sight (spammers, spyware, or scammers), and others whose wisdom is a national treasure. Both professions have trivial problems handled mostly by cut-and-paste, and incredibly complex problems.

        When given an interesting problem in their domain, the lower ones will take almost forever to come up with a bad answer, and the top ones will give a great answer almost off the top of their heads. This is what makes the good ones worth FAR more than the average, and the average ones worth more than amaterus on the street.

  • Sometimes I think it would be best to have less laws if only to keep lawyers from getting all the money.

    Yes I know its a government entity but I bet there are many "consultants" on that list that are not as well.

    I don't think lawyers, singular or as a corporation, should ever get more than the reward.
    • It isn't that much (Score:4, Informative)

      by everphilski (877346) on Thursday December 07 2006, @01:20PM (#17149068) Journal
      7 lawyers making $100/hour working about 6 months (40 hours workweeks, no overtime) would account for it.

      Not to mention their legal staff. Evidence aquisition. Etc. Should they have sought a larger penalty? Sure. But don't underpay the lawyers just because the penalty is low.
      • 7 lawyers making $100/hour working about 6 months (40 hours workweeks, no overtime) would account for it.

        Leaving aside the argument that $100/hour might be too high to start with...

        Seven lawyers for a single case? Seven lawyers working exclusively for that case? Their entire 40 hour workweeks for 6 months on that one case??

      • Re: (Score:3, Informative)

        7 lawyers making $100/hour working about 6 months (40 hours workweeks, no overtime) would account for it.

        For those of you questioning the parents $100/hr. number, you've probably never been to an attorney. My divorce lawyer was billing $150/hr. ten years ago. Shit, my company bills more than that for my time, and I'm not getting anywhere near that. You need to realize that the figure isn't necessarily what the person is making, but what the firm charges. Wrapped into that figure are all the overhead ch
  • by zappepcs (820751) on Thursday December 07 2006, @01:12PM (#17148930) Journal
    FTFA: "The dubious marketing tactics did not end there. Secure Computer also sold its product using pop-up ads which warned users that their computers might be infected with spyware, and it offered them a free system scan. The results of the scan were invariably positive. "Our investigation found that this so-called free scan always detected spyware, even on a clean computer," said Senior Counsel Paula Selis, who led the state investigation. "In order to remove this falsely detected spyware, users were instructed to pay $49.95 for the full version of Spyware Cleaner." It is illegal under Washington law to "induce a computer user to download software by falsely claiming the software is necessary for security purposes," she added."

    I was kind of tired of seeing stuff like they used....
  • Misleading... (Score:5, Informative)

    These guys used bullshit popups in web browsers to convince people they needed to buy an Anti-Spyware product. Go get'em Washington.

  • I think the 'lack of irony' is that the supposed anti-spyware company was itself corrupt. "The company allegedly spammed", did fake scans then informed customers they needed to buy the product ("Our investigation found that this so-called free scan always detected spyware, even on a clean computer,"), broke their own consent agreement, used shaddy sales tactics, etc.

    So, oddly enough, it seems the law worked. Just calling yourself an 'anti-spyware vendor' is no protection from being a spyware company.
    • by raehl (609729) <raehl311&yahoo,com> on Thursday December 07 2006, @01:20PM (#17149060) Homepage
      We know that they paid a total of $1 million in penalties.

      But how much in profits did they make?

      If they made $2 million in profits, then the law didn't work at all.
      • This was Washington State only. If there are $1 million in profits remaining, it is up to other states to go after these guys if their respective laws permit it.
        • Re: (Score:2, Insightful)

          Ah, but did they re-open under a different name? I've seen that happen more than once. Scammer declares under the first business, closes the doors, and are protected. Then they open under a new name, as a new business. This makes it much harder to go after them as it was, technically, the first business that scammed. Lather, Rinse, Repeat.
  • No. It was spyware (Score:5, Insightful)

    by darkonc (47285) <stephen_samuel@b ... m ['n.c' in gap]> on Thursday December 07 2006, @01:15PM (#17148986) Homepage Journal
    It passed itself off as anti-spyware, but actually caused problems for users that installed it, was sold by spamming, etc., etc., etc.
  • by MyNymWasTaken (879908) on Thursday December 07 2006, @01:16PM (#17148994)
    This is not a story of an innocent company harmed by a stupid & malevolent government. The company is the equivalent of a glass window replacer who advertises their services by throwing a brick with their flyer wrapped around it through prospective client's windows.
  • RTFA! No Irony Ahead (Score:4, Informative)

    by Anonymous Coward on Thursday December 07 2006, @01:17PM (#17149016)
    They spammed and pop-up advertised with no opt-out.

    They made false claims as to a limited time offer.

    They provided free scans that resulted in a false-positives.

    They offered upgrades to a "pro" version of a product that was essentially the same as already purchased.

    Say what you want about over-regulation, but these guys seemed a perfect target for these type laws. Has nothing to do with their supposed status as anti-spyware vendor.
    • They made false claims as to a limited time offer.

      Hmmm .. it appears that the offer is no longer available. It seems to have had a limit.

      Just not the limit that the company intended ;-)

  • Rouge anti-spyware (Score:2, Informative)

    by Anonymous Coward
    Note, this is not an anti-spyware vendor who have got used. It is an so called "rouge anti-spyware" vendor. Rouge anti-spyware software is often distributed along with spyware. The rouge antispyware then tells you to buy it to get rid of spyware. It also popups on websites and misleads you into buying their software.

    http://en.wikipedia.org/wiki/Rogue_software [wikipedia.org]

    $750000. Damn, they some blood sucking lawyers!
    • Yeah, they're really red faced after this court loss
      • Or maybe it's a communist plot!

        A communist plot to bilk people out of money.

        Through capitalism.

        OK, maybe not.

        Um... maybe from a red state?

        No, New York and Washington.

        Hmm... maybe their marketing people wear make-up?
  • The practices of this company to sucker in people to buy there software is highly dubious.

    When you use spy-ware, malware to create a problem just so you can sell your product, you deserve to get smacked as hard as the law can allow (imo), how it is ironic when the company probably produced more spyware then it stopped.
  • that, as briefly discussed in the article:
    - spams without opt-out
    - offered fake discounts
    - had deceptive popups, offering a free scan, that always, in every machine, report that the user had spyware.

    • - had deceptive popups, offering a free scan, that always, in every machine, report that the user had spyware. Well, by the time you downloaded and ran the scan, you certainly did have spyware. So I guess it was telling the truth.
  • by griffjon (14945) <GriffJon@Hotmail. c o m> on Thursday December 07 2006, @01:20PM (#17149064) Homepage Journal
    The irony of going after a spyware vendor ends once you discover that they're spamming lying scum:

    "...their "Spyware Cleaner" product had, well, a couple of flaws: it didn't work well, it deleted a user's Hosts file after installation, and it tried to convince users to "upgrade" to another program that did essentially the same thing.

    But it was the way that Spyware Cleaner was marketed that attracted the Attorney General's attention in the first place. The company allegedly spammed users to advertise its product, included deceptive subject lines, failed to include an opt-out mechanism, and suggested that the product was "discounted" for a "limited time," when in reality it was always available for the same price.

    The dubious marketing tactics did not end there. Secure Computer also sold its product using pop-up ads which warned users that their computers might be infected with spyware, and it offered them a free system scan. The results of the scan were invariably positive. "Our investigation found that this so-called free scan always detected spyware, even on a clean computer," said Senior Counsel Paula Selis, who led the state investigation. "In order to remove this falsely detected spyware, users were instructed to pay $49.95 for the full version of Spyware Cleaner." It is illegal under Washington law to "induce a computer user to download software by falsely claiming the software is necessary for security purposes," she added.
  • No the irony is... (Score:3, Interesting)

    by korbin_dallas (783372) on Thursday December 07 2006, @01:22PM (#17149100) Journal
    that a handful of LAWYERS get $750,000 meanwhile the real engine of the economy, people who bought and used the thing have to split $75,000.

    "If I owned this place and Hell, I'd rent this place out and live in Hell."
    • It was the state attorneys' office that brought suit. The funds are probably going to be thrown into the general state funds.
    • Re: (Score:3, Informative)

      "people who bought and used the thing have to split $75,000."

      Over about 1000 people, that averages out to $75 for what they paid $50 for.
  • by OglinTatas (710589) on Thursday December 07 2006, @01:22PM (#17149110)
    It would be ironic if they were more than nominally an anti-spyware company. I read the article, and it sounds like the ruling was correct.
  • What is the deal with State Attorney's fees? This action was brought by officials of the State Attorney General's office, their salaries are paid by taxpayers. As employees of the State, the prosecution lawyers have already been paid for their work. Sure the State has a right to recover their expenses in this lawsuit, but this seems like an awfully high dollar figure, and seems like double-dipping at the taxpayers' expense. Do the prosecutors get a bonus for winning?
    • and seems like double-dipping at the taxpayers' expense

      How is that? They're taking the money from the spammer, so it's not like the taxpayer is paying twice. In fact, assuming that the attorney would submit a bill to the state (and thus the taxpayers), instead said bill will be subsidized by this spamming fake.
      • Sure, I endorse the spammer paying attorney's fees, that's the whole point, to make the losing defendant pay for the lawsuit. But how can the State Attorneys submit a bill to anyone when they are salaried employees of the State? The "lawyers fees," in actuality, are State fees, since they should rightfully be awarded to the State Treasury, since taxpayers bankrolled the lawsuit. Why should the attorneys get anything beyond their salaries? If the attorneys get money from their salary AND fees from the defend
        • Re: (Score:3, Insightful)

          But how can the State Attorneys submit a bill to anyone when they are salaried employees of the State?

          The money to pay those attorneys' salary (and other expenses incurred in the litigation) come out of taxpayer funded accounts. The award of attorneys' fees takes money from the wrongdoer and puts it back in those accounts, saving the taxpayers the expenses incurred in the litigation and allowing them (through their elected representatives) to use that money for other purposes.

    • Re: (Score:3, Informative)

      What is the deal with State Attorney's fees? This action was brought by officials of the State Attorney General's office, their salaries are paid by taxpayers.

      The taxpayers have (directly or through their representatives) chosen to have certain wrongdoers pay them (the taxpayers) back for those salaries and other expenses in certain cases when the expenses are devoted to dealing with those wrongdoers' wrongdoing; essentially, this money will go to the state's general fund, to offset expenses (both personnel

  • ...and pay another $725,000 to cover the state's attorneys' fees.

    Well, i think i fucked up good when i picked my career path.
  • by mark-t (151149) <(markt) (at) (lynx.bc.ca)> on Thursday December 07 2006, @02:04PM (#17149860) Journal
    Anti-spyware that cannot be easily uninstalled and constantly harrases the user to purchase an upgrade is no better at all than the malware that it proposes to eliminate. The tactics of such software are to harrass the user to the point that they ultimately surrender and buy the software simply to be rid of it. I've recently been witness to this happening on a Windows system that had both a firewall and current virus protection at the time, yet not even the latest antivirus signatures loaded into it would get rid of the malware. After spending three days trying to eliminate it using every tactic I could think of, I reformatted the drive and reinstalled Windows. For the sake of reference, it looked like it was promoting the software "Virus Bursters" and "Drive Cleaner". Any product I could find that claimed to get rid of them either simply failed to do the job or else cost money to get rid of it (although the scan was free). The latter policy frankly struck me as no different than the tactics that the author(s) of this particular malware are trying to employ, and I will not submit to such blackmailing tactics.
  • But it was the way that Spyware Cleaner was marketed that attracted the Attorney General's attention in the first place. The company allegedly spammed users to advertise its product, included deceptive subject lines, failed to include an opt-out mechanism, and suggested that the product was "discounted" for a "limited time," when in reality it was always available for the same price.

    I`m *very* happy to see the government does not differentiate between spammers, and spammers acting as legitimate companies. To me it doesn't matter if it's your son delibatery sending me spam or your boss, you're all equally convicted of being jerks in my eyes, and I`m glad to see this court had the same point of view on this.

  • Stop posting. (Score:3, Informative)

    by bluefoxlucid (723572) on Thursday December 07 2006, @03:39PM (#17151576) Journal

    Zonk. Stop posting shit.

    Seriously what is this crap? "Washington Law Stops Anti-Spyware Vendor"? The vendor in question was FALSE MARKETING claiming machines were INFECTED when they were clean. It was throwing pop-ups in peoples' faces and everything. The SEC could shut these guys down, seriously. You might as well say "Built-In FTP Password Sniffer in Linux Kernel" and talk about the Linux Kernel sniffing FTP passwords and sending them offsite; there's actually an example code out there to explain what a rootkit is and demonstrate connection tracking, it's not part of vanilla Linux or any distro, and this would make great FUD. It'd be right along Zonk's line of posting too.

    My suggestion is that Slashdot needs to throw Zonk out because his stories are all bullshit.

    • I know, where's BadAnalogyGuy when you need him?

      This is like a bullet proof vest maker shooting someone in the chest. No, wait, this is like a vest maker being shot in the chest, with his own gun, and then being thrown in a river. No wait...
    • by Anachragnome (1008495) on Thursday December 07 2006, @02:12PM (#17149994)
      It was NOT a ruling, it was a settlement. HUGE difference. The most important is that no "precedence" has been set. What that basically means is that this case cannot be used in the future to help in the prosecution of other offenders.

      Is it a beginning? Yes. Does it move us closer to being able to prosecute others? No.

      While I applaude the state of Washington on bringing charges in the first place, I think that they did the people of the state a disservice by settling. It seemed they had a pretty solid case yet caved at the last moment.

      I suspect that what happened is that someone decided that in order to collect ANY funds from the company, they had to settle. Otherwise, the defendants attorneys would have "used" up all the funds in an effort to defend the company leaving none for the "fines".

      Attorneys have been known to obfuscate, delay and appeal cases all in the name of extending their own value, and thus, their fees.
    • It suggests that the anti-spyware law is defined broadly enough to cover related offenses.

      It reminds me of the way the term "computer virus" has expanded, at least in general use, to cover worms, trojans, and other sorts of malware that don't technically fall under the original definition. This has happened concurrently with antivirus programs expanding their mandate to cover various types of computer security threats.

      Similarly, going the other way, you have "spam" incorporating email-based phishing attemp