U.S. FTC: More spyware-fighting tools needed

The U.S. FTC could use spyware-fighting tools found in stalled legislation, a commissioner says.

Organizations and law enforcement agencies fighting spyware are making progress, but new tools in an antispyware bill stalled in the U.S. Congress could improve the efforts, a member of the U.S. Federal Trade Commission (FTC) said.

One of the spyware bills passed by the House of Representatives earlier this year, the Spy Act, would give the FTC authority to impose civil fines on companies that distribute spyware to consumers' computers. The bill, along with the Internet Spyware Prevention (or I-SPY) Act have stalled in the Senate since passing the House in May and June.

The FTC has the authority to collect profits from spyware operations and collect money for consumer redress, but it lacks the authority to impose other fines, as it does when going after spammers, said Commissioner Jon Leibowitz, speaking at a spyware forum in Washington, D.C.

Assigning a dollar figure to consumer harm is tricky in many spyware cases, especially when the spyware delivers pop-up advertisements to computers, Leibowitz said. It's sometimes difficult to get courts to assign large consumer damages to pop-up cases, he said.

In some cases, spyware damages are assessed by judges "who don't even use computers," said Dave Koehler, with the FTC's Bureau of Consumer Protection.

The Spy Act would allow the FTC to fine spyware vendors up to US$3 million for hijacking computers, delivering unwanted adware and other violations and US$1 million for collecting personal data without permission, in addition to going after the vendor's profits and seeking consumer redress.

Additional authority to impose civil fines would give the FTC "an enormous deterrent," Leibowitz said.

"Right now, companies know that the worst they can do is lose their profits," he added. "They're not going to get fined on top of that."

The FTC has brought several spyware actions against companies. In February, the agency settled a case against adware distributor DirectRevenue. In that case, DirectRevenue settled for US$1.5 million, based on its profits, but the founders of the company had received more than US$20 million in venture-capital funding, Leibowitz said.

While participants in the spyware forum said there continue to be many challenges, including a growing trend of foreign spyware vendors, the cost of spyware to U.S. consumers seems to be falling. Consumer Reports estimated that spyware cost U.S. consumers US$2.6 billion in 2006, but only US$1.7 billion in 2007, noted Ari Schwartz, deputy director of the Center for Democracy and Technology, a supporter of StopBadware.org, a consumer-protection effort aimed at spyware and other malicious code.

The drop in the cost of spyware can be attributed to a number of factors, Schwartz said. Antispyware technology is getting better, the FTC has taken action against spyware vendors and StopBadware.org has distributed a list of malicious Web sites, he said. In addition, some states have taken action against spyware, and cybersecurity groups' public education programs seem to be working, he said.

But Ron Teixeira, executive director of the National Cyber Security Alliance (NCSA), noted that consumers may know more about spyware, but they aren't always acting on their knowledge. A survey released by the NCSA and McAfee earlier this month found 78 percent of respondents' computers didn't have all three of what the NCSA calls the "core protection" software -- antivirus, antispyware and firewall.

"We're not seeing a huge increase in the actual behavior change," he said.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?