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  1. #1
    ABW Ambassador
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    January 18th, 2005
    Spamford pays again...
    Spyware Hustler Hit With $4M Penalty
    Justice was finally downloaded Thursday on Sanford Wallace, a notorious spammer of the 1990s who moved on to illegal spyware operations that installed adware, spyware and other unsolicited software programs on users' computers.

    A New Hampshire federal district court ordered Wallace and his company, Smartbot.Net, to pay more than $4 million in restitution, and it permanently barred Wallace from downloading any software to consumers 'computer without the users' consent.

    In a related action against OptinTrade and Jared Lansky, the court ordered a halt to the same practices that are barred in the Wallace and Smartbot.Net judgment.
    How is this for some telling testimony.
    From: To: Date: Sat, Mar-6-2004 4:51 PM Subject: I DID IT I figured out a way to install an exe without any user interaction. This is the time to make the $$$ while we can.

    Sesmic and OptInTrade agreed that OptInTrade would deal with the advertising networks. When the networks discovered that the benign advertisements they had approved had been replaced by malicious versions, OptInTrade would feign ignorance and lay the blame on its upstream affiliate. In exchange for playing this role, OptInTrade would receive a portion of Seismic’s revenues from the scheme. One exchange between Seismic and OptInTrade, laying out this strategy, was uncovered by the FTC:

    From: To: Date: Fri, Nov-28-2003 12:37 PM Subject: strategy

    I do my sneaky shit with today through Sunday -- everyone’s off anyway…. You then send an email to your contact early Monday AM saying the advertiser was unethical and pulled a switch and you are no longer doing business with them... Then we stop buying through you in any way.

    We know from other emails that this strategy was in fact carried out. One ad network, a company called CyDoor, complained to OptInTrade about the spyware infected ads that it had placed:

    From: Bob Regular [] Sent: Sunday, December 21, 2003 12:45 PM To: ‘Jared Lansky’ Subject: Please Terminate OptinTrade Online Pharmacy - Violated Agreementt […] traffic just informed me your launching pops from your banners that force change in you homepage and stall your computer […] I simply do not understand how this could happen again.

    In response, OptInTrade told CyDoor that the ads were “from a new advertiser” and that they had “no idea how this is happening”:
    As someone who pulled all their cpm ads for 5 days because of this exact incident (i didn't trust valueclick or fastclick to take action), I am tempted to file my own case against them now.

    When it happened I had a long conversation with the FTC and was assured they were going to nail them - sometimes justice moves slow but at least it moves.


  2. #2
    Life is Supposed to be Fun! Rexanne's Avatar
    Join Date
    January 18th, 2005
    Los Angeles
    Wow ... reading what and how they do their nasty makes my skin crawl ... BUGS!!!!!!!! EEEEEEEEEEEEEEEEEEEEEEK!

    Loving Everyone's Child Creates Magic

  3. #3
    Affiliate Manager David Carter's Avatar
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    March 8th, 2006
    4 mil should be a down payment for what they did. I say set the fine at 1 mil above the net worth of both companies. Thanks for the info Chetf.
    David Carter

  4. #4
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
    Join Date
    January 18th, 2005
    St Clair Shores MI.
    Hopefully the FTC and AG's will target ValueClick for running adware install Ads for these type perps.
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

  5. #5
    ABW Ambassador Greg Rice's Avatar
    Join Date
    January 18th, 2005
    They need to set fines at 5-10 times gross earnings. At $4 mil, he probably winced then decided which bank account to write his check from. Until they take away all of their earnings, and then some, they will continues to find ways to screw everyone and see court fines as a cost of doing business.
    Greg Rice Affiliate Program Management info(AT) | 330-259-1223

    Join us! - | DiscountCandleShop/CheeseSupply | Feng Shui Plaza

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