 | |
| |
TechnologyDaily Mobile
Washington Top Cop Settles 'Spyware' Cases
by Michael Martinez
Washington state Attorney General Rob McKenna on Wednesday announced settlements with two firms accused of violating his state's consumer-protection laws and a law governing secretly installed malicious software programs.
A pair of New York-based firms, High Falls Media and Roc Telecommunications, agreed to pay more than $300,000 to settle allegations that they manipulated customers into buying the program "Spyware Slayer," and that they failed to disclose the costs of music-downloading programs they promoted until consumers provided personal information. Neither company admitted any wrongdoing as part of the agreement.
"Internet businesses must do a better job of self-regulating and thoroughly evaluate their advertising and marketing methods to ensure they comply with the law," McKenna said in a statement. "They need to fully disclose all terms and fees for their products and services, and should not intentionally manipulate consumers' fears about spyware and other online threats in order to boost sales."
High Falls Media and Roc Telecommunications have been ordered to e-mail all consumers in Washington who purchased the products and offer refunds to any consumers who have not already requested reimbursement.
According to prosecutors, many consumers were baited into buying Spyware Slayer from High Falls after they used free spyware scans the company offered. The scans falsely detected spyware on their computers and urged them to buy Spyware Slayer to fix the problem.
"Our investigation found that this so-called 'free scan' always detected spyware labeled as 'extreme risk' on a user's computer," Assistant Attorney General Katherine Tassi said. "The scan also identified harmless registry keys as spyware. In order to remove this falsely detected spyware, users are advised to purchase the full version of Spyware Slayer for $29.95."
The companies also were accused of misrepresenting the costs of several downloading services. According to McKenna's office, some consumers did not learn the costs until they already gave the firms their personal information.
"We believe consumers were misled to believe that the services were free, and it was only after they provided their names, e-mail addresses, and, in some cases, physical addresses, that they were told of the true cost," Tassi said.
It was a busy week for McKenna on the technology front. On Tuesday, he announced settlements with two companies based in his state, including a satellite television and radio service firm, accused of violating telemarketing and charity laws.
Both the Cancer Relief Fund and Regal Satellite agreed to pay fines to settle allegations that they violated privacy laws by contacting individuals listed in the state's do-not-call registry against unwanted telemarketing. Prosecutors said Regal Satellite tried to justify the calls by claiming it donated $5 for every call to the Cancer Relief Fund.
"A telemarketer whose primary goal is to sell a product or service is not exempt from those regulations simply because a portion of the sales revenue is used for charitable purposes," McKenna said.
Federal Judge Overturns La. Videogame Law
A federal judge on Wednesday overturned a law in Louisiana that would have restricted sales of violent videogames to minors.
U.S. District Judge James Brady said the law, which would have imposed penalties of up to $2,000 or one year in prison on vendors if they sell restricted games to children younger than 18, was unconstitutional. A temporary injunction on the law was ordered after it was signed into law by Gov. Kathleen Blanco earlier this year.
Assistant state Attorney General Burton Guidry told The Advocate that he knew the state was facing an uphill fight for the law in court. "We did everything we could to defend the law, but, as the judge said, the law was practically unenforceable as written," Guidry said.
Videogame laws in California, Illinois, Michigan and Minnesota have been blocked by courts on constitutional grounds during the past two years. A federal appellate court on Monday upheld a lower court ruling blocking enforcement of the Illinois law.
Texas, Indiana Ink Contracts With IBM
Texas Gov. Rick Perry announced Wednesday that his state has signed a seven-year, $863 million contract with IBM to consolidate its government data centers and modernize its technological infrastructure.
As part of the deal, IBM also has agreed to hire more than 330 of the state's current information technology employees and give them salary raises of up to 10 percent.
"I'm committed to making Texas the leader in technology advances while ensuring our citizens receive the best value for their tax dollars," Perry said. "Data center consolidation accomplishes both and is just good business."
Meanwhile, Indiana Gov. Mitch Daniels on Wednesday announced plans to move ahead with a $1.16 billion project to privatize his state's welfare system.
Under the new system, Hoosier State residents will be able to apply for welfare programs online, by telephone and in person. Daniels claimed it will save the state as much as $340 million. He said the state is currently negotiating a deal with a business group headed by IBM to complete the project.
As part of the deal, IBM has agreed to create 1,000 customer-service center jobs in Indiana over the next four years. It also will provide up to $7 million in software and hardware for a supercomputer project at Indiana University.
"It's the procurement policy of this administration to favor companies that hire Hoosiers," he said in a statement. "We discussed with IBM the importance we placed on their making a major commitment to Indiana, and 1,000 new jobs was the result."
Maryland Court To Webcast Proceedings
The highest court in Maryland is scheduled to begin making its proceedings available on the Internet in real time Thursday.
The Maryland Court of Appeals, which is akin to supreme courts in other states, is set to launch its first webcast for observers outside the courtroom. The sessions will be filmed by a stationary camera in the Annapolis courtroom. Plans are in the works to deploy additional cameras to show different courtroom angles.
"The whole purpose behind what's known as electronic government is for ordinary citizens to get information and see how their government works," Donald Norris, a University of Maryland at Baltimore County professor, told The Baltimore Sun. "The court of appeals providing greater access to its proceedings is a good thing."
NEW FEATURE
-Advertisement-
-Advertisement-
-Advertisement-
