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Tuesday, December 5, 2006
$1 million accord in spyware lawsuit
OLYMPIA -- Washington state will receive a $1 million settlement from New York-based Secure Computer, resolving the state's first computer spyware lawsuit, Attorney General Rob McKenna announced Monday.
More than 1,140 Washington residents who bought the company's Spyware Cleaner software or, in some cases, Popup Padlock are eligible for refunds under the agreement filed in federal court last week.
Under the consent decree signed in Seattle by U.S. District Judge Ricardo Martinez, Secure Computer and company President Paul E. Burke agreed to pay $200,000 in civil penalties, $75,000 in restitution for consumers, and $725,000 in state attorneys' fees and costs.
There was no admission or finding of wrongdoing.
"It sends a strong message to Internet businesses that they must promote their products ethically and legally," McKenna said.
"We won't tolerate deceptive marketing such as 'scareware' that preys on consumers' fears about spyware and online threats."
The state brought the charges in January, accusing Secure Computer, of White Plains, N.Y., of using mass, misleading e-mails and pop-up advertisements to sell bogus "spyware cleaner" -- software that didn't work.
Secure Computer stopped selling Spyware Cleaner when the state filed its lawsuit.
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