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In the Matter of Zango, Inc. f/k/a 180Solutions, Inc., a corporation, Keith Smith, individually and as an officer of the corporation, and Daniel Todd, individually and as an officer of the corporation.
FTC File No. 052 3130
November 3, 2006
- Agreement Containing Consent Orders
- Analysis of Agreement Containing Consent Orders to Aid
- Public Comment
- Complaint
- News Release
Zango Corporate BlogBELLEVUE, Wash. – Nov. 3, 2006 – In announcing a settlement agreement with Zango, the Federal Trade Commission (FTC) today established standards for the online downloadable software industry and, most importantly, provided online consumers with a new and higher level of protection. Zango has met or exceeded the key notice and consent standards detailed in the FTC consent order since at least January 1, 2006.
Zango is an online media company that fulfills consumers’ growing demand for free, sought-after digital content, such as videos and games. The FTC, which initiated its investigation of Zango in September 2005, alleged that, in some circumstances in the past, the company’s desktop advertising software was inadequately disclosed to users and its installation and uninstall practices were unfair.
“Early in our business, and as we’ve acknowledged, we relied too heavily on our affiliates to enforce our consumer notice and consent policies. Unfortunately, this allowed deceptive third parties to exploit our system to the detriment of consumers, our advertisers and our publishing partners. We deeply regret and apologize for the resulting negative impact,” said Keith Smith, CEO of Zango. “The FTC’s leadership in providing clarity around best practices is a welcome and significant step forward for Zango and our industry. We embrace the new standards and will continue to create, abide by and strive for best practices that protect consumers.”
The “Agreement Containing Consent Order” is a settlement of the FTC’s investigation and explicitly “does not constitute an admission [by Zango] that the law has been violated.” Zango will pay a $3 million fine as part of the settlement.
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Update from ReveNews:
ReveNewsSpyware researcher Ben Edelman says he has proof that Zango hasn't really cleaned up its act and that he'll post his proof in the coming weeks.
"180 continues plenty of bad practices, including some unlabeled ads, materially misleading installations that fail to disclose key aspects of 180's effects, and installation attempts predicated on security exploits.
I commend the FTC's efforts here, but serious diligence will be required to assure that 180 actually complies with its many obligations under the settlement. At this instant, I am confident that 180 is not in compliance."
