'Scareware' Operators to Pay $8.2 Million to FTC, In Settlement

'Scareware' Operators to Pay $8.2 Million to FTC, In Settlement 

The father-son team behind a massive 'scareware' scam will have to pay $8.2 million to the Federal Trade Commission, in order to settle a complaint filed by the government agency. However, it doesn't really matter since the duo actually made about $40 million in sales.

Marc D'Souza and his father Maurice were allegedly at the center of the scam, which tricked Internet users into buying fake security software to combat computer infections that didn't really exist. The operators reportedly sold more than a million copies of their false software, which they marketed under names like Winfixer, Drive Cleaner and Antivirus XP. As PC World reports, the FTC will use the settlement money to reimburse consumers who purchased the software, which typically cost $39.95 or more. 

According to documents (PDF) filed in a Maryland U.S. District Court, Marc D'Souza operated one business involved in the scareware scheme and held an officer position at another. His father wasn't explicitly involved in the execution of the scam, but profited from it, nonetheless. The operators allegedly spread their advertisements by posing as legitimate companies, and striking deals with advertising networks and websites. Instead of promoting the companies, however, the advertisements hawked the fake software, thanks to a hidden programming code embedded within the ads. 

After the FTC filed a complaint against the D'Souzas, the court immediately ordered them to halt operations in 2008. In addition to paying the FTC, the settlement bans Marc D'Souza from being involved in the development or sale of any software that affects consumers' PCs, and prohibits him from registering domain names with false information.

Comcast-NBC merger expected to have net neutrality conditions

Comcast-NBC merger expected to have net neutrality conditions

Federal regulators aren't expected to decide this week on whether to approve a merger of Comcast and NBC Universal, as they weigh placing conditions on Internet access, as well as other requirements, according to sources familiar with the reviews.

The two Democratic commissioners are pushing to ensure the merged broadband and media company preserves local media and that Comcast can't use its market power to make it harder for content and media companies to reach consumers.

The merger has been blessed by FCC Chairman Julius Genachowski, as long as the companies agree to certain conditions, including some on online video. The FCC would not give details, but analysts said they expect Comcast to agree to provide NBC shows as long as other networks are providing their content to online video providers such as Apple TV and Netflix.

According to sources familiar with the FCC review, Comcast and NBC are expected to agree to net neutrality rules for a limited number of years. Those rules would be upheld even if the FCC's recently passed Internet access rules are overturned by courts.

Comcast, meanwhile, has been seeking speedy completion of its year-long review by the FCC and the Justice Department. Sources said Justice has finished its review and is waiting for the FCC to vote on Genachowski's order.

In a blog earlier this week, Comcast executive vice president David Cohen said the merger appeared near a vote. He noted that the company's commitment to provide $9.99 broadband access to low-income communities has been hailed by the tech community. The firm has received support from filmmaker Ed Burns and some minority groups and lawmakers.

But it has also faced a flurry of opposition. Internet service provider Earthlink has petitioned for conditions that force Comcast to unbundle its broadband access so companies like it can provide Internet access to Comcast customers. Voxel, a company that hosts traffic for Web sites such as The Observer, said Comcast doesn't play fair in business-to-business relationships. Specifically, it said Comcast purposefully keeps its pipes congested for certain content delivery networks such as Voxel and Tata Communications in order to charge them for better delivery of content.

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